Quick Answers
- Reservations made by bots or third-party sellers may lead to no-shows and cancellations, which can result in lost revenue for restaurants.
- Resy’s Platform Security can help combat reservation fraud with tools that actively monitor and flag platform misuse and cancel reservations that violate its guidelines.
- Resy’s platform also works to identify profiles that have been flagged by other restaurants and deactivates accounts that violate the Terms of Service.
- To address reservation fraud, some businesses have started to implement a booking fee, or limit the amount of reservations an account can make in a week.
In 2024, reservation fraud became a buzzy topic of discussion for the industry. Reservations made by bots and unauthorized third-party resellers can often turn into no-shows and late cancellations, resulting in lost revenue for restaurants. Resy data has found…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.