You know that gut feeling when a booking just doesn’t sit right?
I’ve had that feeling more times than I can count in my 20+ years of working with hotels. When I speak with hoteliers, I notice that it is always the same pattern: something small feels off. Maybe it’s the way a “guest” insists on paying via wire transfer. Or a booking for 30 nights in a premium suite made at 3 AM from an IP halfway across the world.
The first time it happened to an OnRes user, they brushed it off. They thought, Why would anyone bother scamming a single hotel like theirs? A month later, they were fighting a $12,000 chargeback for a “corporate booking” that never really existed.
Since then, I’ve learned to spot the red flags early, advice on training their team, and use tech to stop scammers before they walk through the door.
Here’s what I’ve seen work, what I’ve learned the hard way, and how you can protect your property.
Fraud Isn’t Random, It’s a Business (And We’re the Target)
Fraudsters are running an operation.
They’re not amateurs sending random fake emails. They’re organized networks who:
- Steal card details in bulk
- Use stolen cards to book real rooms
- Then resell those rooms on sketchy “discount travel” sites at half the price
And the worst part? You don’t even realize it’s fraud until weeks later, when the real cardholder files a dispute.
Here’s how bad it’s getting:
- The global travel industry lost $37 billion last year to online booking scams (Wall Street Journal).
- 84% of hotels in Canada reported some kind of booking fraud in 2024.
- Scammers even use AI now to clone entire hotel websites, guests think they booked with you, but the money goes straight into a fraudster’s account.
This isn’t a one-off. It’s a trend. And every hotel, whether you’re a boutique property or a 500-room resort – is a target.
The (Fraudulent) Hotel Bookings That Make Me Pause
Here’s what my experience has taught me about suspicious bookings.
- The Too-Good-To-Be-True Long Stay: Someone books 20 nights in your best suite, no negotiation on price, and wants it prepaid. Sounds great, right? Wrong. Fraudsters LOVE long stays because it racks up the charge.
- Odd Payment Requests: Anytime someone insists on paying via bank transfer, crypto, or third-party “company accounts” instead of a normal credit card, my alarm bells go off.
- Mismatched Details: The booking name says “John Smith,” but the email is executive_travel@protonmail.com and the IP traces back to another country entirely.
- Weird Communication Channels: Guests asking for payment links on WhatsApp, or sending an email saying “We have to urgently change the payment method—please click this link.” Nope.
What I Do the Moment I’m Suspicious
Here’s my personal fraud checklist, and it’s saved me thousands:
Step 1: Don’t rush
Fraudsters create a false sense of urgency. “I need this booking NOW.” The more pressure they apply, the more you should slow down.
Step 2: Pick up the phone
I always call the guest or the company they claim to work for. Nine times out of ten, the number is fake, or the company has never heard of them.
Step 3: Ask for ID
A real guest won’t mind sending an ID. A scammer will disappear.
Step 4: Use tech as your backup
This is why we built OnRes with fraud detection tools, IP checks, card verification, and booking behavior analysis. It’s like having a second set of eyes on every booking.
Tech Helps, But Training Your Team is Key
I can’t stress this enough: your front desk team is your first line of defense.
I urge every OnRes user to train their staff to trust their instincts. I tell them, “If something feels wrong, don’t ignore it just because it’s a high-value booking.”
One time, a new hire at one of our vendors’ caught a scam just by noticing the guest’s card name didn’t match the booking name. She called me, we dug deeper, and sure enough—it was fraud.
Now I am thinking of running “Fraud Fridays” at every property we work with. We review real cases, talk through what was suspicious, and make sure the team feels confident questioning any booking.
#OnResTips: At OnRes, we have also partnered with PCI to safeguard Credit Card Processing information.
Why This Matters Beyond the Money
Fraud bookings aren’t just about the chargeback.
When a guest shows up with a fake booking, or worse, when a guest THINKS they booked with you but got scammed by a fake site; they don’t blame the scammer. They blame your hotel.
It hurts your reputation, creates operational chaos, and erodes trust.
I’ve had guests arrive angry, saying, “But I booked on your site!” only to find out they paid a scam site. It’s heartbreaking; for them and for you.
#OnResTips: Impact of Guest Feedback on Hotels
What You Can Do Today to Stop Fraud Bookings at Your Hotel
If you want to stop fraud before it starts:
- Review your booking process. Are you validating payments properly?
- Educate your team. Share real fraud stories so they know what to look for.
- Upgrade your tech. A PMS or booking engine with fraud detection (like we built into OnRes) can catch things humans miss.
- Communicate with guests. Add a simple note on your site: “We will never ask for payment outside official channels.”
Here’s the Truth…
Fraud will never completely go away. But you can make your hotel a much harder target.
When scammers realize you have strong verification steps, trained staff, and a booking engine that flags suspicious behavior, they move on to an easier victim.
After 20+ years, I can tell you this: it’s not about paranoia, it’s about preparation.
I built OnRes to give hoteliers tools I wish I had back then: smarter fraud checks, better channel management, and a safety net that lets you focus on what really matters: your guests.
Stay sharp, stay secure, and remember: trust your instincts.
