Internet Scam
Guests of top hotel chains targets of new Internet scam
A well-organized online fraud is scamming over 71,000 travelers each month as they book rooms online at some of America's best known hotel chains, including Hyatt, Clarion, TraveLodge, Comfort Inn, Red Roof, EconoLodge, Super 8, Ramada, Days Inn, and Wyndham, according to an exclusive report by fraudtip.com.
Findings released for the first time this morning show that the Internet scam combines advanced online advertising, bogus hotel locators, third-party reservation systems, and an Internet browser virus to redirect hotel guest traffic to fake versions of well-known hotel chain websites.
The scam casts a big net and is evolving daily, reports FraudTip.com. Affected properties include hotels and suites, budget motels, airport hotels, luxury hotels, resorts, and casinos.
Hardest hit are Super 8 Motels, Days Inn, and Ramada, which are owned by Wyndham Worldwide in Parsippany, New Jersey, the world's largest hotel chain. A total of over 50,000 travelers seeking out these hotels are redirected to the bogus sites each month.
Another 15,862 prospective guests are redirected from Comfort Inn, the chain owned by Choice Hotels International located in Silver Spring, Maryland. Econo Lodge and Clarion Hotels & Resorts, also owned by Choice Hotels, are targets as well.
Red Roof Inn, headquartered in Kalamazoo, Michigan, is currently losing an average of 4,441 visitors per month. In addition, Hyatt Hotels, headquartered in Chicago, has fallen prey to the same fraud network.
FraudTip.com's preliminary findings show that the fraudulent sites are attracting a higher-than-average percentage of female visitors, teens, as well as adults 50+. The scam has also attracted a higher-than-average percentage of African American visitors, and has proven effective in attracting an affluent audience, and a high index of graduates and post graduates.
In conducting its investigation, FraudTip.com used several methodologies including an audience measurement approach that couples machine learning with massive quantities of directly measured data. The system, by http://www.quantcast.com/white-papers/quantcast-methodology.pdf,
is designed to deliver detailed audience information that can be leveraged in real-time for addressable advertising, however, it was used by FraudTip.com to estimate the magnitude of the fraud.
A series of conference calls for hotel chain executives will be held yesterday, January 26, with Washington, DC cybersecurity insiders to evaluate claims against the perpetrators, legal options, asset recovery, and continued monitoring.
(with wire inputs)
Comments
WTF! I have to warn my friends about this! They just booked online for Hyatt! Oh gad, I hope they didn't fall for it. I can't believe this is happening. Do we have suspects now?
Michelle
Did they identify who was behind it? What legal options are available to the legitimate hotel companies? Nobody ever wants to regulate the internet, but this is what you get. I remember a few years ago some website went up for a new low-fare airline to Hawaii. They actually took some bookings (and money) online before it was discovered that no such airline existed. Bottom line: It's a lot easier to put up a website than it is to run a legitimate business, and consumers buy marketing hype and "lowest price" come-ons without question.
Every Travel Agent around the world should post a copy of this story in thier clients mnewsletters, display in store etc! Consumers need to know that booking on-line comes with none of the gaurantees registered Travel Agents can offer!
Geoff Grogan
Director of Marketing & Procurement
27 Bis Tran Nhat Duat, District 1
Ho Chi Minh City, Viet Nam
Active Asia / Ecotour
who is the perp?
Using a travel agent does not mean you will not get scammed. I recently posted on another story how I was cheated by a trained Travel Agent. Just because they are a travel agent does not mean they are not crooked. You can find a thief in any walk of life, from police and firefighter to the grocery clerk that sacks your food at the local market. The advantage the internet gives the thief is the ability to reach more people and it helps hide the identity of some crooks. Its not just about saving money, not all but many of the scams are effective because of the victims greed. So, no matter where you are, watch out. And, as so clearly posted by another person "To the scammers - may you be damned for taking advantage of people - you vile thieves!" Well Said.
Caveat Emptor. Just because something is on the internet, even with a slick presentation, does not make it for real. Consumers need to invest some time in researching what exactly they are buying, and who they are buying it from.
BTW on top of fake booking sites, there is now the problem of fake hotels, at least here in NYC. Owners of what are meant to be low income rental apartment buildings have kicked out the low income residents, branded the buildings as hotels and put up websites which lure out-of-towners into staying there, even though they are breaking the housing laws and not licensed to operate as hotels.
How absolutely LOW! There are many of us who are veteran trained Travel Agents who are skilled to provide a service . . . but the lure of the 'search-engine' versus (WO)MAN and the four letter word S A V E is going to be the downfall of this industry which I have been proud to serve for 31+ years now!
To the scammers - may you be damned for taking advantage of people - you vile thieves!
Kenneth R. Hieber
Founder & President
2AFRIKA, Inc.
Post new comment