AI-Generated Travel Scams Rise in Malaysia, Singapore, and the US

As artificial intelligence continues to revolutionise the travel sector, a new and dangerous trend is emerging—AI-generated travel scams. These sophisticated deceptions are fooling travelers across the globe, from Malaysia to the United States, and are fast becoming a critical concern for the B2B travel ecosystem.

Malaysia’s Viral Deepfake Incident: A Wake-Up Call for the Industry

In July 2025, an elderly couple in Kuala Lumpur became victims of a disturbing AI-based scam. A realistic video showcasing a fictional cable car in Kuak Hulu, Perak, went viral across TikTok and Facebook. The lifelike visuals and professional voiceover led them to believe it was a legitimate tourist attraction—only to arrive at an empty location.

This isn’t an isolated event. The growing use of deepfakes and AI-generated media in the travel industry is exposing gaps in digital verification and consumer trust—making it imperative for B2B travel professionals to act.

The Global Scale of AI-Driven Fraud in Travel

A recent 2025 Online Identity Study by Jumio reveals some troubling insights:

• 44% of global travellers assume the travel industry will protect them from AI fraud, often lowering their guard.

• US travellers show the highest concern, with 55% expressing distrust in travel brands’ ability to prevent AI-powered scams.

• In comparison, only 22% of UK and 30% of German consumers shared the same sentiment.

Surprisingly, Singaporeans—known for digital savviness—show the lowest concern (37%), even as AI-driven scams grow in sophistication. This complacency could expose a major travel hub to increased fraud risks.

B2B Insight: How Traveller Behaviour is Changing

Despite rising threats, the willingness to invest in security is growing:

• 74% of global users in 2025 say they’re now ready to spend more time on identity verification for travel platforms (up from 71% in 2024).

• Singapore leads again here, with 78% open to longer verifications, though this marks a slight decline from last year—possibly due to rising trust in AI and convenience-first platforms.

This trend isn't limited to travel—digital banking and fintech users show 80% willingness to engage in security checks, highlighting a larger shift in consumer expectations across industries.

Why This Matters to B2B Travel Professionals

With AI-generated scams advancing in realism, travel agents, consolidators, and corporate planners must rethink how they safeguard client journeys—from the moment of booking to post-travel support.

Key B2B Takeaways:

• Fake booking sites and social media scams are increasing: Educate clients on verifying travel deals, especially on platforms like TikTok and Instagram.

• Identity theft and account takeovers (ATO) are on the rise: Adopt smart ID verification tools to protect client data.

• Consumer trust is shifting—clients expect travel providers to invest in digital safety measures, not just physical ones.
  
  

The Road Ahead: How the Industry Can Respond

To maintain trust and relevance in an AI-driven travel world, B2B companies must proactively adapt:

• Invest in AI-Based Fraud Detection

Integrate real-time monitoring tools that flag suspicious behavior and authenticate identities before final bookings.

• Prioritise Consumer Education

Use newsletters, WhatsApp updates, or client briefings to guide customers on how to spot fake ads, videos, and social media travel offers.

• Streamline Secure Booking Experiences

Make identity verification smoother but more robust—biometric checks, OTPs, and multi-step logins can deter fraudulent activity without compromising UX.

• Collaborate Across Sectors

Airlines, OTAs, DMCs, and GDS partners must work with tech providers and government bodies to create a safer travel booking environment.

Final Thought: AI Is Reshaping Trust in Travel—Are You Ready?

As AI becomes more embedded in marketing, content, and bookings, it’s crucial for B2B travel businesses to stay ahead of fraud tactics. While the tech behind scams may evolve, so must our commitment to digital security, transparency, and client education.

Whether you’re a consolidator, TMC, or tour operator, building a secure travel ecosystem is no longer optional—it’s your new value proposition.

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