SOUTH LAKE TAHOE, Calif. – A scam that was targeting tourist-based businesses in Hawaii has now made its way to Lake Tahoe. In March 2025, the Hawaiʻi Tourism Authority warned tourism businesses about a sophisticated chargeback fraud scheme targeting the industry, resulting in significant financial losses for multiple outlets. The scam comes through the Chinese platform “Little Red Book” (Xiaohongshu).

Little Red Book is often referred to as the Chinese Instagram and is a social media and e-commerce platform focusing on user-generated content in fashion, beauty, and lifestyle. 

How the Scam Operated in Hawai’i

Fraudsters exploited Little Red Book by offering heavily discounted tours and tickets for popular Hawaiʻi attractions to Chinese visitors. These attractions included state parks, the Pearl Harbor National Memorial, whale watching, snorkeling, and scuba tours.

Unknowing 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 by the fraudsters, resulting in financial losses for the businesses. Since the tourists arrive with valid bookings under their real names that they believe they paid for, the fraud is typically discovered only after the transactions are disputed.

Hawai’i has a strong Chinese tourism bureau, so it is unclear how Lake Tahoe’s 50 percent off vouchers started appearing.

Scam in South Lake Tahoe

South Tahoe Now was contacted by an associate of a local business that was the target of the Little Red Book scam. They had a large number of chargebacks, something they don’t normally have, and began an investigation into the transactions.

Travelers pay a company that was advertising on Little Red Book for a Lake Tahoe tourism experience at a 50 percent discount. The traveler pays for the service from their home in China, gets a booking confirmation, and then arrives at Lake Tahoe to use their voucher. The local business believes they were paid, as they have the booking transaction and provided the service. Only after the customer is long gone does a chargeback come through from their credit card provider. The fraudulent company gets the 50 percent cost from the traveler, and then books the experience at 100 percent of the price with a stolen or otherwise fraudulent credit card. They then do a chargeback and get the 100 percent they “paid.” So, let’s say the traveler booked a jet ski at $200 instead of the normal $400. They paid the company listed on the Little Red Book platform $200. The fraudster then books the jet ski rental for $400 with a bad credit card and gives the traveler a confirmation number. The traveler arrives in Lake Tahoe, rents the jet ski, and goes about their vacation. It is only after the rental that the business is informed via a chargeback that they are out the $400. The fraudster has now made $600.

The local business that was hit with the chargebacks now has a strict policy that those checking in for their service must have the ID and credit card that match the reservation. They won’t match, so while the local company is now protected, the traveler is out what they paid. The company has posted this information on its website, so if a savvy traveler has looked into the service, they will be aware.

Other services involved in Little Red Book fraud

International students, particularly in Australia, have been targeted by scammers posing as rental agents on the platform. Scammers might mimic legitimate properties and include fake details to secure upfront payments. The rental post will feature room pictures, location details, and several positive comments.

How to protect yourself as a consumer

  • Be wary of deeply discounted offers: Especially for tourism or rentals, if a deal seems too good to be true, it likely is.
  • Verify sources: Book tours and accommodations through official and authorized channels. For rentals, prioritize licensed agencies or verified platforms.
  • Exercise caution with upfront payments: Be cautious about demands for upfront fees, especially via money transfer.
  • Scrutinize reviewer profiles: Look for signs of fake reviews, such as generic titles, lack of detail, or strange usernames.
  • Report suspicious activity: If you encounter fraudulent activity, document it thoroughly and report it to the platform and relevant authorities, like the Better Business Bureau

The South Lake Tahoe Police Department has not heard of any local scams involving the 50 percent off voucher purchases. The fraud happens at the place of the transaction, and not normally when the traveler shows up in South Lake Tahoe.

The FBI recommends reporting any suspected scams to the Internet Crime Complaint Center (IC3) at www.ic3.gov. The local FBI field office can also be contacted, or a tip can be submitted online at tips.fbi.gov.