Security experts say chargeback fraud is a growing problem for the cruise industry as more customers dispute charges through their banks rather than requesting refunds directly through a cruise operator. Banks may then issue customer refunds that the consumer isn’t entitled to, leaving the operator on the hook.
The problem joins a growing list of fraudulent activity facing the travelsphere.
As reported by Open Jaw earlier this year, WTAA along with ACTA have identified a surge in fraudulent undertakings such as stolen credit card bookings, impersonation schemes and phishing attacks designed to exploit travel agencies, including a sophisticated plot exploiting legitimate IATA accreditation numbers to issue large volumes of fraudulent airline tickets.
Tim Tynan, chief executive officer of Chargeback Gurus, told Cruise Ship Industry News that most cruise operators aren’t equipped to effectively fight chargeback fraud.
“Fraud is becoming more sophisticated and organized, and addressing it requires a coordinated response from the entire ecosystem,” he said.
According to the Paladin Vendor Report, chargebacks are one of the most harmful types of fraud faced by businesses today. “If left unchecked, chargebacks steal profits and threaten a business’s longevity,” the report states.
Complicating the issue is the fact that not all customers do this maliciously; some are confused by the process or have misunderstood terms and conditions. For this reason, chargeback fraud may also be called “friendly fraud.”
Combating the issue takes a mix of prevention measures, like clear communication of fees and cancellation policies, as well as detailed documentation, he said.
“When a chargeback comes in, having that evidence organized and ready to submit makes the difference between winning and losing the dispute,” Industry News reports. “Training staff to recognize fraud patterns also helps.”
The rise in chargebacks also reflects growing consumer interest in cruising overall. Statistics Canada reports that Canadian cruise arrivals totalled 1.9 million in 2025, surpassing pre-pandemic highs of 1.5 million arrivals by 33.4%. And, according to CLIA, the industry now contributes more than $168 billion to the global economy.
