The Hawaii Tourism Authority has issued a warning to both consumers and businesses regarding a sophisticated fraud scheme that is targeting tourism enterprises in Hawaii via the platform known as “Little Red Book” (Xiaohongshu). This organized scheme has already led to significant financial losses for numerous local businesses due to fraudulent chargebacks. Below, additional details regarding the operation of the scam and the measures taken by the Hawaii Tourism Authority in collaboration with Hawaii Tourism China are provided.
Overview of the Fraud Scheme:
A coordinated scam is utilizing “Little Red Book” (小红书) to unlawfully offer heavily discounted tours and tickets for various attractions in Hawaii, including state parks, the Pearl Harbor National Memorial, whale watching, snorkeling, scuba diving, and other activities.
Mechanism of the Scam:
The scam operates by marketing heavily discounted tour packages to Chinese tourists through unauthorized channels. Initially, these transactions seem legitimate—tourists receive valid confirmations, engage in tours, and obtain services from authentic businesses. However, once the services have been delivered, fraudulent chargebacks are initiated through various methods, leading to financial detriment for local enterprises.
This scheme poses a particular challenge to detect, as visitors arrive with legitimate bookings under their actual names, and the fraudulent activity only becomes evident after services have been rendered and businesses have already absorbed the operational expenses.
Actions Undertaken by Hawaii Tourism China
In response to the escalating threat, Hawaii Tourism China (HTC) has implemented several measures:
- Reporting on Platforms: HTC has submitted claims on Little Red Book, utilizing information from a partner in Hawaii to target dubious accounts that are offering heavily discounted tours and activities in Hawaii.
- Consumer Alerts: HTC has disseminated warning notices across all official social media channels, strongly advising customers to book exclusively through authorized online travel agency platforms such as Trip.com. These alerts are currently being shared on Little Red Book, WeChat, Weibo, and Douyin.
- Enhanced Outreach: HTC has collaborated with Brand USA to broaden the dissemination of these warnings. They have already shared the notice on their WeChat account last week to ensure a wider reach.
- Diplomatic Discussions: HTC has engaged with the US Embassy Beijing Commercial Department, which is now informed about these reported scams. They have shown a willingness to engage directly with Little Red Book, contingent upon the provision of comprehensive evidence.
We appreciate your attention to this critical issue. This information is being shared solely for awareness, enabling you to remain informed about emerging threats to our tourism sector.
The Hawaii Tourism Authority will continue to closely monitor this situation and will provide updates on any significant developments as they arise. If you have encountered similar fraudulent activities, we urge you to document all incidents meticulously and reach out to the Better Business Bureau.
