The seasonal scam that's turning hotels into turkeys

It’s time for companies’ year-end meetings, seminars, weddings, and Christmas parties. The big celebrations certainly translate into equally big transactions at the hotels where these events will be held.
So folks in the hotel industry must be rejoicing right now, right? But wait! Recent reports suggest the upcoming surge in room reservations could turn into nightmares unless hotels watch out for a loophole.
In the past, fraudsters toting stolen credit cards usually targeted gold shops. But people began to recognise the threat, and banks and credit card providers put in place preventive measures that include the surcharge and ID check requirement for every big transaction.
So scammers have moved on to another target: the ever-growing e-commerce sector. Most scams now appear in the form of the “card not present” transactions on the Internet, which require only the 16 digits of your credit card number. Fortunately, consumers and merchants have become more cautious over this kind of fraud; banks even have specific procedures to handle it.
Somehow it seems that the hotel industry has escaped the vicious fraud loop. But folks in hospitality shouldn’t take anything for granted: reports say they are now in the con-men’s crosshairs.
Fraudsters with stolen credit cards are riding the tide of the festive season to find an easy way to cash in!
Imagine a couple making a reservation for a wedding reception, or an event organiser booking a big banquet at a hotel. Usually, the average expense for these will range from Bt300,000 to Bt1 million. It is standard practice for hotels to require a deposit of at least 10 per cent.
What the thieves do, in this case, is to ask to pay more for the deposit through the stolen credit card. Why? So that they can get a big refund in cash after they cancel their booking later.
Despite the penalty fees and cancellation charges deducted by the hotel, the cash refund they get will still be worth it.
So, take good care of your credit cards and read your monthly bank statement carefully. If you notice something odd or realise that one of your cards is missing, contact the bank right away. Otherwise you might become the next victim yourself!

Janejit Ladpli is vice president of the Travel & Leisure Marketing Division, Krungthai Card (KTC).