The European Commission has opened an investigation into Booking.com, accusing the accommodation platform of an "absolutely substandard" approach to tackling fraudulent listings and phishing scams. EU regulators say the company may have breached the Digital Services Act (DSA), which requires platforms to assess and mitigate risks to consumers. The probe also examines whether Booking.com violated advertising transparency rules by not clearly disclosing paid placements.
EU officials on Wednesday said Booking.com's measures to prevent fraud and protect consumers were insufficient under the DSA. A commission official stated that while the company takes some steps, "they could go much further" and should have "much more solid systems to prevent fraud." The investigation covers two types of scams: fake property listings where victims arrive to find no booking exists, and "reservation hijacks" where criminals use hacked data to impersonate accommodation providers, often demanding payment via WhatsApp or through the platform itself.
Dutch consumer group Consumentenbond reported 200 Booking.com-related scams in 2025 totaling €65,000 in losses, up from 89 cases worth €25,000 in 2024. It called these cases "just the tip of the iceberg." UK consumer group Which? previously demonstrated security lapses by setting up a fake listing for 10 Downing Street and accepting payment through the site. Booking.com told the BBC in 2024 it had seen a 500 to 900% increase in scams driven by generative AI tools.
Booking.com, headquartered in Amsterdam with 28 million listings, said it was "engaging constructively" with the commission and reaffirmed that "security, trust and the protection of personal information are top priorities." The company added that it remains committed to working with governments and industry partners to combat cybercrime and online fraud.
If found in breach of the DSA, Booking.com could face a fine of up to 6% of its worldwide annual turnover. The commission said opening the investigation does not prejudge its outcome.
Analysis
Why This Matters
- If Booking.com is found to have violated the DSA, it could face a significant fine, sending a strong signal to other platforms about the cost of inadequate fraud prevention.
- The case highlights the growing challenge of AI-enabled scams targeting travel consumers, and the DSA's role in holding big tech platforms accountable.
- Millions of travellers who book through the site may be affected; stronger safeguards could reduce the risk of losing money to fraudulent listings and phishing attacks.
Background
The Digital Services Act, which took full effect in early 2024, imposes obligations on very large online platforms to assess and mitigate systemic risks such as fraud and scams. Booking.com is designated as a very large online platform under the DSA, making it subject to these rules. The investigation follows years of reports from consumer groups and media exposing security lapses at the company, including a 2024 demonstration by Which? that showed how easily a fake listing could be created and accepted payments. The European Commission's executive vice-president for tech sovereignty, Henna Virkkunen, has made consumer protection a priority.
Key Perspectives
European Commission: Regulators argue Booking.com's current fraud prevention measures fall short of DSA requirements. They point to the platform's failure to conduct adequate risk assessments and implement robust systems to prevent fraudulent listings and data misuse.
Booking.com: The company maintains that security and consumer trust are top priorities. It says it is cooperating with the investigation and working with law enforcement and industry partners to combat cybercrime.
Consumer groups: Organisations such as Consumentenbond and BEUC welcome the investigation, calling the problem systemic. They note that reported scams represent only a fraction of actual cases, and urge the commission to mandate stronger protections.
What to Watch
- The commission's final decision, which could include a fine, orders to change practices, or both.
- Whether Booking.com voluntarily introduces new fraud detection and transparency measures before the investigation concludes.
- Future DSA enforcement actions against other travel or e-commerce platforms with similar scam problems.