With
Michigan winter in full-swing, going on a vacation to some warm, tropical
location sounds like a dream! Airbnb can make this process super easy and fun. As
a guest of a local, you can get a real sense of the location—and you’ll save
money, too!
However,
because the Airbnb system is based on trust of the individual renting out their
home or rooms, crooks will always try to exploit the system. The Australian
Better Business Bureau reported a six-fold increase in scams related to AirBNB
in recent years. The service recently expanded its offerings, allowing users to
book independently run guided tours or experiences in addition to rooms. This
expansion has been part of the drive behind the increase.
Before
you book at Airbnb for your winter getaway, be aware of these scams.
1.
Fake Websites
An
Airbnb host you were interested in sends you a link to several other properties
they have for rent. These properties come complete with reviews, logos, a live
chat service and other hallmarks of authenticity. So, you think nothing of
wiring a fee to reserve your room.
But
when you try confirming your reservation with Airbnb, they have no record of
your transaction and don’t even have the properties listed. What happened?
A
scammer capitalized on your trust by directing you to a fake booking website
that’s not hosted by Airbnb. These groups go to extreme lengths to create
accurate reproductions of the official site.
There
are two ways to avoid this scam. First, always check the URLs of sites you
visit, making sure the word Airbnb occurs right next to the .com. This tells
you it’s not a phony site. Second, only pay through Airbnb’s official checkout
platform, which uses modern encryption technology.
2.
Phony Excursions
A
new feature of Airbnb is the ability to book “experiences,” or days out on the
town with locals.
This
creates a new opportunity for scammers who can now offer phony tours. While the
company vets the potential tours carefully, it’s difficult for them to monitor
a distributed network of service providers.
Local
experiences appeal to many visitors. However, proceed with caution. Always
check reviews (on a legitimate Airbnb site) before paying for anything!
3.
External Payment
Airbnb
charges a 3% commission on bookings done through their website. This prompts
some landlords to offer a discount in exchange for direct payment through a
third-party processing site. Tightfisted travelers might be tempted to save a
few bucks this way.
Resist
the temptation. Payments outside the website don’t have the conflict resolution
procedures usually covered by Airbnb, so there’s no guarantee you’ll have a
room at all if you use one.
Also,
no legitimate business will have you wire funds directly to their account. With
services like PayPal, even small businesses can now accept credit cards. When
you use a card, you can always stop a payment. After you wire money, it’s gone.
It’s always a good idea to use only secured forms of payment.
Your Turn: Have you ever used Airbnb
or a similar service? What was your experience like? Share safety and savings
tips with us in the comments!
*Community Financial does not endorse the information,
content, presentation or accuracy, nor make any warranty, expressed or implied,
regarding the websites and/or apps mentioned above.
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