A growing number of Hawaiian tour operators are grappling with a deceptive scheme that leaves them financially strained. The fraud involves tourists purchasing what they believe to be discounted tickets for popular attractions, only for the companies to later face disputed charges from credit card providers.

The impact on businesses has been significant. For instance, And You Creations, which offers whale watching and snorkeling tours, has seen an alarming rise in chargebacks since December. Each day, the company receives multiple notifications of disputed transactions, often involving groups of four or five individuals. These disputes can result in substantial financial losses, sometimes reaching hundreds of dollars daily. Steven Fenwick, owner of Ocean Adventures, another tour operator, also encountered similar issues recently, further highlighting the widespread nature of this problem.

Tourism officials suspect that scammers advertise heavily discounted tickets through platforms like Little Red Book, attracting unsuspecting tourists. Once the tourists pay for these seemingly bargain-priced tickets, scammers book full-price tours using stolen credit cards. After enjoying the excursions, the scam artists or the legitimate credit card holders dispute the charges, leaving the tour companies to bear the loss. This practice not only undermines the tourism industry but also erodes trust between businesses and consumers.

Efforts to combat this issue are underway. The Hawaiʻi Tourism Authority's China team is actively reporting suspicious accounts and collaborating with authorities to warn potential victims. Tour companies are advised to tighten their verification processes by requesting guests to present both the booking credit card and a matching photo ID. By implementing stricter protocols, businesses can protect themselves from falling prey to such fraudulent activities. Ultimately, fostering a secure and transparent environment will ensure the continued prosperity of Hawaii’s vibrant tourism sector.