Business travel is essential for building relationships, driving growth, and supporting collaboration, but it also creates significant financial and cybersecurity risks.
According to a survey of 1,000 business travelers, travel-related fraud costs companies as much as $2.8 billion annually. These losses stem from both external cyber threats and internal expense fraud, making business travel a growing area of concern for employers.
Criminals understand the challenges that come with travel: tight schedules, unfamiliar environments, and constant distractions. These conditions make traveling employees particularly attractive targets.
Common Travel Fraud Risks
- Public Wi-Fi and Device Security
Airports, hotels, and conference venues present additional security risks.
Cybercriminals may create fake Wi-Fi networks that appear legitimate, allowing them to intercept sensitive data or capture login credentials. Employees accessing company systems, email, or financial information on unsecured networks can unknowingly expose corporate data.
The need to stay connected while traveling often leads employees to prioritize convenience over security.
- Expense Fraud
Not all travel fraud comes from external sources. Expense fraud remains one of the most common forms of internal misconduct.
While 94.7% of employees report completing expense reports honestly, 5.3% admit to committing expense fraud, according to survey data.
Common examples include:
- Inflated mileage claims
- Duplicate expense submissions
- Altered receipts
- Personal expenses submitted as business-related
Because many organizations still rely on manual reviews, small discrepancies can accumulate over time and remain undetected.
- Phishing and Fake Travel Communications
Business travelers are frequent targets of phishing attacks disguised as airline, hotel or booking communications. Messages claiming a flight has been canceled or requesting updated payment information create urgency and encourage employees to act quickly.
These scams often direct travelers to fraudulent websites designed to steal login credentials, payment information, or corporate account access. Because travelers are focused on keeping their schedules intact, they may be less likely to verify the legitimacy of these messages.
- Executive Impersonation Scams
Travel schedules often make executives difficult to reach, creating ideal conditions for business email compromise attacks.
Fraudsters may impersonate a traveling executive and send urgent requests to finance or HR teams, asking for wire transfers, vendor payments, or confidential information. The inability to quickly verify requests can increase the likelihood that employees comply.
- Conference and Event Risks
Conferences and industry events concentrate large numbers of employees, devices and company information in one location.
Attackers may use fake Wi-Fi networks, malicious QR codes, credential harvesting tactics or fraudulent vendors to gain access to sensitive information. Because these events encourage networking and digital engagement, suspicious activity can easily blend into the environment.
How Employers Can Reduce Risk
- Educate Employees
Pre-travel security reminders can help employees recognize phishing attempts, avoid suspicious networks, and identify social engineering tactics. Informed travelers serve as an important first line of defense.
- Strengthen Travel Controls
Centralized booking platforms, approved vendors, and corporate card policies provide greater visibility into travel spending and help reduce opportunities for fraud before expenses occur.
- Secure Executive Accounts
Multi-factor authentication, strict payment approval procedures, and secondary verification methods can significantly reduce the risk of executive impersonation scams. Financial transactions should never rely solely on email approval.
- Protect Devices
Organizations should require virtual private network (VPN) use, encrypt company devices, and disable automatic Wi-Fi connections. Remote wipe capabilities can also protect company data if a device is lost or compromised.
- Improve Expense Oversight
Clear expense policies, receipt requirements, and periodic audits help identify inconsistencies. Automated expense management tools can detect duplicate claims and unusual spending patterns before reimbursements are approved.
Balancing Mobility and Security
Business travel remains critical for growth, collaboration, and client relationships, but it also introduces financial and cybersecurity risks organizations cannot afford to ignore.
By strengthening expense controls, securing company devices, and educating employees, businesses can reduce fraud exposure without limiting mobility. Modern expense management solutions provide greater visibility and accountability before, during, and after travel, helping organizations protect their people, payments, and data.
