The Better Business Bureau (BBB) has issued a warning about a scam that takes advantage of Expedia customers.
In a press release, the BBB said it started receiving several complaints earlier this month with losses up to $4,800 being reported.
The scam starts, said the release, with consumers doing an internet search looking for customer service phone numbers for Expedia. When they call the number the unaware consumer usually asks for confirmation or changes to the reservations they had already made through Expedia’s website. But the Expedia customer service imposter at the other end of the line of the phoney number tells the caller the company’s site is experiencing problems and the customer will have to purchase gift cards to get their refund or make changes to their bookings. Some victims were duped with fake promotions while making the new travel plans, says the BBB.
A victim in Victoria told the BBB the scammer said she could offer a cheaper price by booking over the phone because of a new partnership with Google, and that the offer was available for a limited time. After more than 40 minutes on the phone, she instructed to buy $500 worth of Google Play gift cards to pay for the new travel arrangements, and then tried to get more money by telling him two of the five cards he bought were invalid and he’d need to buy another $200 in gift cards. She even offered to charge the $200 to his credit card.
“I got very nervous and said I would call her back. She was very persistent that she could not hold the rate much longer. When I called back, that’s when I knew I was scammed, as it was not a legitimate Expedia phone number,” said the victim from Victoria.
BBB Mainland BC public relations manager Karla Davis said scammers are always trying to impersonate brands and businesses consumers recognize and trust.
"They are riding on the credibility and reputations of these companies, with the hope that consumers will not be paying enough attention to notice the scam,” said Davis. “While brand impersonation is a big problem, the growing number of reports about scams involving gift cards is another major concern. Consumers need to remember that gift cards should only be used as gifts, not for payments or anything else.”
The release notes Expedia, which is based in Bellevue, Wash., has an A+rating with the BBB and that Expedia has taken steps to counteract the scams including working with popular search engines to reduce the occurrence of the fake ads, making its contact numbers more visible on its site and adding information about the scams.
The BBB emphasized gift cards are only for gifts, not payments. So if anyones says to buy a gift card and share the numbers on the back with them over the phone, it is a scam. A huge red flag is raised if there is a demand to pay money up front so it can be later refunded because trustworthy companies never do that. The BBB is also warning consumers not to buy gift cards for people you don’t know, including anyone met online that you’ve never met. The BBB advises consumers to register any gift card they purchase if the company has that option because it makes it easier to track any misuse and can potentially end up protecting money stored on it.
Search engines don’t guarantee getting the right phone number for a company so the BBB advises consumers to go directly to the company’s website to find contact information.
Those that believe they’ve been victims of a gift-card scam should report it to the BBB (bbb.org/scamtracker), the Canadian Anti-Fraud Centre (1-888-495-8501), the company that issued the card and the retailer.
The BBB suggests retailers consider implementing policies such as setting gift card purchase limits, putting up clear warning signs about these scams, restricting the redemption of gift cards for other gift cards, and enhancing employee training.
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