ARGENTINA: INTERNET TRAVEL AGENCY SCAM IN BUENOS AIRES

UNCLAS BUENOS AIRES 001288 SIPDIS DEPT FOR CA/FPP, WHA/AND, DS/ICI/CR DEPT ALSO PASS TO KCC POSTS FOR FRAUD PREVENTION MANAGERS E.O. 12958: N/A TAGS: CVIS KFRD ASEC SMIG PE AR SUBJECT: ARGENTINA: INTERNET TRAVEL AGENCY SCAM IN BUENOS AIRES ¶1. SUMMARY: Between February and November 2009, Post received eight NIV applications from Argentines who won low-fare travel packages with Vacations724.com and related companies, who were later charged undefined fees once the applicants provided the companies with their credit card numbers. While we cannot identify how extensive the scam is, our investigation suggests one owner has set up a ring of front companies, and is making substantial money off of marginally qualified applicants. END SUMMARY. -------------- How the Scam Works -------------- ¶2. The duped travelers hear about Vacations724.com and related travel agencies through advertisements on local radio shows. After calling in and answering simple questions like, "Who is the most famous mouse in the world?" the radio host informs the caller that s/he has "won" a special promotional fare for travel packages which include cruises and hotels in Kissimmee, Orlando, and Miami and directs them to call a travel agency, which then transfers them to a call center in the United States. While the travel agencies have several different names, including Vacations724.com, bueno.com, vuelas.com, Universalenlinea.com, mundomagicoorlando.com, and Reino Magico, the Fraud Prevention Unit (FPU) discovered that all of the websites are registered to the same owners. Once the travelers give their credit card information to book the promotional fare, they begin to receive undefined charges in Mexican pesos from "My Mexicaribe." Clients usually end up paying more for their travel package than they would if they had purchased the services directly. The agency also charges for bogus services like "visa letters" for the visa interview. Nonetheless (or not completely bogus),for those travelers willing to pay the price, it appears the agency does provide the agreed upon reservations and services. ¶3. The case of Argentine traveler Carolina Millone provides one example of how the scam works. Millone told the Fraud Prevention Unit (FPU) that Vacations724.com offered her a promotional package, which she promptly paid for with her credit card. She and the company agreed on the phone that she would travel in January, but shortly after their conversation she received a letter saying that her travel was scheduled for December. When she responded that she could not travel then and preferred the original dates agreed upon in the phone call, "My Mexicaribe" charged her USD 198 to "reactivate" her reservation because she had "cancelled her travel" in addition to USD 448 for other "taxes and reservation expenses." Doing her own research, Millone found that the taxes charged were far higher than the ones stated on the hotels' websites. After she complained, the company changed her cancellation status to "no show" status and charged only 99 USD. "My Mexicaribe" then charged her credit card again for undefined expenses right before her travel date. Total charges amounted to USD 2,146.88 over the promotional fare. -------------- Who is Behind the Scam? -------------- ¶4. FPU has not been able to decisively determine the full scope of the scam, but has made some initial discoveries. All of the travel agency websites listed above are registered to Josh Schwartz and Soledad Martinez. Soledad Martinez was also identified as "the owner" by a Vacations724.com travel agent. Booking contracts show that Vacations724.com is registered under license number ST25963. However, FPU could not locate Vacations724.com or any of the other travel agencies under that registry license number in Florida. While Vacations724.com's letter states their address is 1717 North Shore Drive, Miami, Google Maps shows this is a Marriott Hotel. A Vacations724.com travel agent said their office address is 4500 Sable Palm Road in Miami. Several agents, including Sandy Rivas, Frida Mabel, Laura Alvarez, Lourdes Cede????o, Gustavo Garcia and Flora Herrera, respond to phone calls and emails for Vacations724.com, but transfer calls as soon as a problem with a client occurs. The phone numbers provided in the visa letter, 305-371-0727/7144, are registered under "Universal en Linea" at 600 NE 36th Street in Miami; but Google Maps shows no company under that name registered at that address. According to Cecilia Millone, a Mexican branch should be located at Avenida Playas #66 Manzana 14, Supermanzana 30, Cancun, Quintana Roo 77509, but FPU could not find that address through Google Maps. According to FCS, none of these travel agencies have ever participated in The International Pow Wow, the travel industry's premier international event in Argentina and the largest generator of Argentine travel to the U.S. -------------- Scamming Throughout WHA -------------- ¶5. It appears Vacations724.com and related agencies have actively recruited throughout WHA, often attracting unqualified visa applicants. A CCD text search revealed that 48 out of the 89 applicants who applied for visas in WHA consulates for Vacations724.com trips were refused for not overcoming 214b. NIV case comments in cases from various WHA Posts mention that Vacations724.com trips are fraudulent. Trip Advisor, an online travel forum, features warnings from travelers who similarly "won" a Vacations724.com package through a radio show and subsequently paid thousands of dollars or had credit cards charged without their knowledge. ¶6. COMMENT: Constantly evolving, Vacations724.com is currently offering radio show giveaways under the new name Reino Magico. FPU has no reason to believe that visa applicants are complicit in the scam. END COMMENT. MARTINEZ MARTINEZ