Medium riskTravel & Holiday Scams

Travel Insurance Scam

In this scam, fake or unlicensed travel insurance is sold cheaply with broad promises, but the policy is worthless or invalid, so claims are denied and you are left uninsured abroad.

Quick verdict

Risk level
Medium risk
Scam type
Fake insurance (travel)
Main red flag
Very cheap travel insurance with broad cover from an unverifiable provider.
What to do first
Verify the insurer is licensed and read the policy before buying.

What this scam usually looks like

In this scam, fake or unlicensed travel insurance is sold cheaply with broad promises, but the policy is worthless or invalid, so claims are denied and you are left uninsured abroad.

Example message pattern

Example pattern — not a real report
Example pattern: 'Full travel cover for $5, any destination, no exclusions! Enter your card to get insured instantly.'

This is a fictional, anonymised example used to illustrate the pattern. It is not a verified real message, and any names are used only to show how the scam typically reads.

Red flags to watch for

  • Very cheap cover with 'no exclusions'
  • An insurer you cannot verify as licensed
  • Vague or missing policy documents
  • Pressure to buy instantly
  • Card details requested on an unverified site

What to do

  • Verify the insurer is licensed with your regulator
  • Read the policy terms and exclusions before buying
  • Compare reputable providers
  • Pay by a method you can dispute

If you already clicked or replied

  • If you paid, check whether the cover is genuine and contact your bank if not
  • Arrange real cover before travelling
  • Keep documents and messages as evidence
  • Report the provider to your regulator

What not to do

  • Do not buy cover from unverified insurers
  • Do not trust 'no exclusions' cheap policies
  • Do not travel relying on a policy you cannot verify

Similar scams

High risk Online Shopping

Ghost Broking Scam

In this scam, a 'broker' sells cheap car insurance that is fake, forged, or taken out with false details, so the policy is invalid; you are uninsured, lose your premium, and risk penalties if you drive.
High risk Online Shopping

Holiday Package Scam

In this scam, a too-good-to-be-true all-inclusive holiday or travel package is advertised cheaply, then the seller takes a deposit or full payment by transfer and provides no booking, fake confirmations, or nothing at all.
Medium risk Travel

Vacation Club Scam

In this scam, a vacation or holiday club uses free-prize lures and high-pressure presentations to sell expensive memberships promising cheap holidays that are restricted, unavailable, or worthless.

Frequently asked questions

How do I buy genuine travel insurance?
Verify the insurer is licensed with your regulator, read the policy and exclusions, compare reputable providers, and pay by a method you can dispute.
Is very cheap 'no exclusions' cover real?
Unusually cheap, comprehensive cover with no exclusions is a warning sign of a worthless or fake policy. Check the insurer and terms carefully.
I bought a policy that isn't real. What now?
Arrange genuine cover before travelling, contact your bank about the payment, keep your documents, and report the provider to your regulator.
How do I check an insurer is licensed?
Confirm it on your financial or insurance regulator's register before sharing card details or relying on the policy.

Last reviewed: June 2026

Disclaimer: This page provides educational information only to help you recognise common scam patterns. It is not legal, financial, cybersecurity, or law enforcement advice, and it does not confirm whether any specific message, company, or person is genuine or fraudulent. When in doubt, contact the official organisation directly and report concerns to your local authorities.