SCAM LIBRARY · MONEY & PAYMENT

The 'free vacation' scam

Scammers offer an exciting free or heavily discounted vacation to lure you into paying hidden fees, membership costs, or 'processing charges' that you'll never get back.

Documented by the FTC & FBI IC3 · reviewed 2026-07-06

How it works

You receive an unexpected call, email, or text saying you've won a free vacation or exclusive travel deal. The caller creates urgency—'this offer expires today'—and pushes you to provide payment information or a credit card number right away to 'secure' or 'process' your prize. Once you pay, the vacation never materializes, or additional fees keep appearing.

Red flags

• You didn't enter any contest or sign up for any travel offer, yet you're told you've won.
• The caller insists you must pay an upfront fee, membership cost, or 'processing charge' to claim your free vacation.
• You're pressured to pay immediately by card, wire transfer, or gift card, with promises the money will be 'refunded later.'

What to do

• Hang up and do not share any personal, banking, or credit card information.
• Verify directly with the legitimate travel company or agency by looking up their phone number yourself (not one provided by the caller).
• Report the scam at reportfraud.ftc.gov so authorities can help protect others.