$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
travel insurance scam
Fraudulent companies sell fake travel insurance policies that provide no actual coverage, leaving travelers without protection when they need to file claims for cancellations or emergencies.
“travel scam”
↑ 439%Key indicators
Usually targetsTravelers
Often hitsFreelancers and contractors
Common regionUnited States
Last updated2026-04-04
Estimated impact
$640
median reported loss
Typical range$40 – $4.0K
Recovery rate~15%
Scam breakdown
1
Scammers advertise travel insurance through email, pop-up ads, or third-party booking sites at prices 50-70% below legitimate providers.
2
Travelers purchase the policy and receive official-looking documents, but the underwriter does not exist or the policy number is invalid.
3
When the traveler files a claim for a cancellation, medical emergency, or lost luggage, they discover the insurance company is unreachable or the policy is void.
What to do first
Purchase travel insurance only from providers rated by AM Best or listed on your state's insurance department website.
Related terms
fake travel insurancebogus trip protection planSummer travel scamsEmailSurgingTravelersSeniorsFamiliesFreelancers and contractorsSmall business ownersPayroll, HR, and finance teamsUnited StatesCanadaUnited Kingdomfake travel insurancebogus trip protection plan
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Ashley, 35, a travelers, encountered what appeared to be a legitimate summer travel scams situation while using Email. Scammers advertise travel insurance through email, pop-up ads, or third-party booking sites at prices 50-70% below legitimate providers.
Step 2
What happened next was calculated: Travelers purchase the policy and receive official-looking documents, but the underwriter does not exist or the policy number is invalid.
Step 3
The pressure escalated quickly: When the traveler files a claim for a cancellation, medical emergency, or lost luggage, they discover the insurance company is unreachable or the policy is void.
The outcome
Ashley realized something was wrong when insurance company is not licensed in your state and is not listed in the am best directory. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Purchase travel insurance only from providers rated by AM Best or listed on your state's insurance department website. Ashley's experience shows why insurance company is not licensed in your state and is not listed in the am best directory and policy is extremely cheap compared to legitimate travel insurance for the same coverage are the clearest early warning signs.
How to identify it
- Insurance company is not licensed in your state and is not listed in the AM Best directory
- Policy is extremely cheap compared to legitimate travel insurance for the same coverage
- No claims phone number or process documented in the policy paperwork
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Purchase travel insurance only from providers rated by AM Best or listed on your state's insurance department website.
- ✓Verify the insurance company's license and the policy number directly before traveling.
- ✓Report fraudulent insurance providers to your state insurance commissioner and the FTC.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Keep the full sender address, domain, attachments, and—if possible—the raw email headers.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The National Association of Insurance Commissioners reported a 20% increase in complaints about fraudulent travel insurance policies in 2024, particularly those sold through third-party booking platforms.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Purchase travel insurance only from providers rated by AM Best or listed on your state's insurance department website.
- ✓Verify the insurance company's license and the policy number directly before traveling.
- ✓Report fraudulent insurance providers to your state insurance commissioner and the FTC.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The National Association of Insurance Commissioners reported a 20% increase in complaints about fraudulent travel insurance policies in 2024, particularly those sold through third-party booking platforms.
NAIC Consumer Complaint Report 2024
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Travelers, Seniors, Families
Geographic concentration
United States, Canada, United Kingdom
Primary channel
Email — Summer travel scams
Why this group is vulnerable
Travelers are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The rapid increase in reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The National Association of Insurance Commissioners reported a 20% increase in complaints about fraudulent travel insurance policies in 2024, particularly those sold through third-party booking platforms.
Source notes
- NAIC Consumer Complaint Report 2024
Frequently asked questions
Common questions about travel insurance scam
How does the travel insurance scam work?+
Scammers advertise travel insurance through email, pop-up ads, or third-party booking sites at prices 50-70% below legitimate providers. Travelers purchase the policy and receive official-looking documents, but the underwriter does not exist or the policy number is invalid. When the traveler files a claim for a cancellation, medical emergency, or lost luggage, they discover the insurance company is unreachable or the policy is void.
What are the warning signs of travel insurance scam?+
Insurance company is not licensed in your state and is not listed in the AM Best directory Policy is extremely cheap compared to legitimate travel insurance for the same coverage No claims phone number or process documented in the policy paperwork
What should I do if I encounter travel insurance scam?+
Purchase travel insurance only from providers rated by AM Best or listed on your state's insurance department website. Verify the insurance company's license and the policy number directly before traveling. Report fraudulent insurance providers to your state insurance commissioner and the FTC.
Who is most at risk for travel insurance scam?+
This scam primarily targets Travelers, Seniors, Families. It is most commonly reported in United States, Canada, United Kingdom and typically appears on Email.
Is travel insurance scam getting worse?+
travel insurance scam is currently surging — reports are increasing rapidly. It has been reported across US, CA, UK. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
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