Hawaiʻi Tourism Authority warns businesses about a sophisticated chargeback fraud scheme targeting local tourism through the platform “Little Red Book,” causing losses.

The Hawaiʻi Tourism Authority has issued a warning to tourism businesses about a sophisticated chargeback fraud scheme targeting the industry through the social media platform “Little Red Book” (Xiaohongshu). The fraudulent scheme has already caused significant financial losses for several local businesses.

How the Scam Operates
Fraudsters are exploiting Little Red Book to offer heavily discounted tours and tickets for popular Hawaiʻi attractions to Chinese visitors. These attractions include state parks, the Pearl Harbor National Memorial, whale watching, snorkeling, and scuba tours.

Tourists book these services through unauthorized channels, receiving legitimate confirmations. They participate in the activities, but after the services are provided, fraudulent chargebacks are initiated, resulting in financial losses for the businesses. Since the tourists arrive with valid bookings under their real names, the fraud is typically discovered only after the transactions are disputed.

Measures Taken by Hawaiʻi Tourism China
Hawaiʻi Tourism China (HTC) has taken several proactive steps to address the issue:

  1. Platform Reporting: HTC has reported suspicious accounts selling discounted Hawaiʻi tours to Little Red Book.
  2. Consumer Alerts: HTC has issued public warnings via official social media platforms, advising travelers to book through authorized services like Trip.com. These alerts have been shared on Little Red Book, WeChat, Weibo, and Douyin.
  3. Expanded Outreach: HTC has partnered with Brand USA to increase the reach of these warnings, which are also being shared on Brand USA’s WeChat account.
  4. Diplomatic Efforts: HTC has engaged with the US Embassy’s Commercial Department in Beijing. They are aware of the scam and are open to working with Little Red Book, pending further documentation.

The HTA urges affected businesses to report incidents to the Better Business Bureau and document all occurrences. The organization will continue to monitor the situation and provide updates as needed.

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