Sophisticated chargeback fraud targets Hawaiʻi tourism businesses

The Hawaiʻi Tourism Authority is warning tourism businesses about a sophisticated chargeback fraud scheme targeting the industry through the social media platform “Little Red Book” (Xiaohongshu). The scam has already resulted in significant financial losses for multiple local businesses.

How the scam works

Fraudsters are using Little Red Book to sell heavily discounted tours and tickets to Chinese visitors for popular Hawaiʻi attractions, including state parks, Pearl Harbor National Memorial, whale watching, snorkeling and scuba tours.

Tourists book these services through unauthorized channels and receive legitimate confirmations. They participate in the activities, but after the services are rendered, fraudulent chargebacks are initiated, leaving businesses with financial losses. Since visitors arrive with valid bookings under their real names, the fraud is often detected only after transactions are disputed.

Actions taken by Hawaiʻi Tourism China

Hawaiʻi Tourism China (HTC) has taken several steps to address the issue:

• Platform Reporting: HTC has filed claims with Little Red Book to report suspicious accounts selling discounted Hawaiʻi tours.
• Consumer Warnings: HTC has issued alerts on its official social media accounts, advising travelers to book through authorized platforms like Trip.com. These warnings have been posted on Little Red Book, WeChat, Weibo and Douyin.
• Expanded Outreach: HTC has partnered with Brand USA to amplify these warnings, which have been shared on Brand USA’s WeChat account.
• Diplomatic Engagement: HTC has met with the US Embassy Beijing Commercial Department, which is aware of the scam and willing to engage with Little Red Book, pending further documentation.

HTA urges affected businesses to document incidents and report them to the Better Business Bureau. The agency will continue to monitor the situation and provide updates as necessary.