Americans reported losing $2.1 billion to scams that began on social media in 2025, roughly eight times the 2020 figure, according to data released by the Federal Trade Commission (FTC) in April 2026. Nearly 30% of people who reported losing money to a scam said it started on a social platform, and Instagram ranked third for reported losses behind Facebook and WhatsApp.
In July, the agency issued a consumer alert focused on how sellers ask to be paid, warning that “anyone who says you can only pay in one of these ways is probably a scammer.” Those figures cover every type of scam, and travelers face a second risk in organizers who collect real money and deliver a different trip.
Nadia “Sparkle” Henry, owner of the group travel agency Travel with Sparkle, described one case in a July 2025 Travel Weekly column, citing a traveler who paid $5,000 for a group trip to Tanzania, spent more than 36 hours in a car, and said the organizer changed where the group stayed. Henry reviewed the itinerary and found no flights between key safari regions, then checked the company’s website and Instagram and found no displayed affiliations with recognized travel organizations or evidence of seller of travel credentials.
How To Check A Travel Company’s Credentials On Instagram
A great Instagram feed or a large following “doesn’t mean they’re qualified to plan your trip,” Henry wrote. She recommends checking for affiliations with ASTA, IATA, or CLIA, as well as professional credentials such as ASTA’s Verified Travel Advisor designation. ASTA runs VeriVacation, a searchable directory of advisors who hold that credential.
California requires covered sellers of travel to register with the state attorney general and print the registration number in their advertising. Its Seller Search tool shows whether a registration is current. Florida runs its own registration program for sellers of travel through the Department of Agriculture and Consumer Services.
Travel attorney Daniel Zim told Host Agency Reviews that seller of travel laws in California, Florida, Hawaii, and Washington apply to agencies doing business with residents of those states, including companies based elsewhere, though some sellers qualify for exemptions. The FTC also suggests searching the company’s name with the words “scam,” “review,” and “complaint.”
Questions To Ask Before Paying A Group Trip Deposit
The California Attorney General advises getting complete trip details in writing before paying, including the total price and any cancellation and change penalties, and then confirming reservations directly with the airlines, hotels, and other suppliers involved. That step depends on the organizer naming the property, and the FTC tells travelers to walk away from offers that promise a “five-star” resort or a “luxury” cruise without specific details.
For group departures, travelers should also ask how many participants the trip needs to run, whether the accommodations are already booked or will be reserved after deposits arrive, and what refund applies if the organizer cancels for low enrollment. The attorney general’s office notes that most, though not all, registered sellers of travel must deposit customer payments into a trust account or obtain a bond. Travelers should ask organizers where they will hold deposits. Trips with a public charter flight call for one more step, since the FTC advises confirming the charter has Department of Transportation approval before the package is sold.
How To Pay For A Trip You Found On Instagram
The FTC’s July alert names bank transfers, wire transfers, cryptocurrency, payment apps, and gift cards as the methods scammers demand, since each makes money difficult to recover. California’s Department of Financial Protection and Innovation warns that peer-to-peer payments can be difficult to recover, a risk that extends to group trip installments sent through those apps.
The California attorney general suggests paying by credit card, which may allow travelers to reverse the charges. Charges for services that weren’t delivered as agreed appear on the FTC’s list of billing errors cardholders can dispute, and a written dispute must reach the card issuer within 60 days after the first bill showing the charge.
That window can close before departure on a trip booked months ahead, so travelers should ask their card issuer about dispute procedures and deadlines for prepaid travel purchases. Travelers who suspect fraud can report it at ReportFraud.ftc.gov and to their state attorney general. California’s attorney general also asks the public to send the name and contact details of any unregistered company arranging travel to its Seller of Travel Program.
