Here’s How Planners Can Fight Back

The events industry is seeing a sharp rise in scams that are increasingly difficult to spot. From fake invoices to fraudsters impersonating corporate executives, criminals are exploiting digital vulnerabilities with convincing communications often powered by generative AI.

Event technology strategist Sarah Merrick said this is just the tip of the iceberg, and scams are only going to intensify.

She outlines the attack chain: fraudsters research payment patterns, initiate conversations about an event, and then rush through an urgent request for advance payment with altered banking details. 

“The trick works because it feels routine: an invoice, a deadline, a quick update,” said Merrick.

The Glasshouse, a New York City event venue, had an incident in which phishing emails were so personalized, that an employee clicked what turned out to be a fraudulent link.

This allowed scammers to infiltrate The Glasshouse’s IT system. “Bad actors got into our system silently for a little while and saw our routine,” said Gianluca Sardo, president of The Glasshouse NYC. 

A client’s sharp eye picked up inconsistencies in an invoice they received. It was different than others in the past and the client alerted The Glasshouse. 

The scammers also registered a domain name that was almost identical to the one that belongs to The Glasshouse. Since then, The Glasshouse has brought on a cybersecurity firm and now requires verbal confirmation for all payments.

Nirjary Desai, founder of KIS Cubed Events, was scammed out of $20,000 in July. She said the fictitious exec who said he was planning an event was believable.  “They watch your social media and use AI to appear to be something they are not,” she said. 

Events as Targets

Business email compromise, frequently referred to as BEC, is not just another phishing scheme. Criminals carefully research vendors, clients, and payment cycles to craft messages that feel authentic. Once funds are wired, recovery is nearly impossible.

These scams are especially effective in the events sector, where large payments are made quickly and often under deadline pressure. Fraudsters know that planners are most vulnerable in the days leading up to an event, when urgency leaves little room for scrutiny. 

Liz Lathan, co-founder of The Community Factory and co-creator of Club Ichi, sent $40,000 to a scam artist two days before one of her events was set to kick off.

Lathan said Club Ichi community members are reporting an increase in fraudulent outreach where potential “clients” ask planners to front event costs with the promise of later reimbursement.

 “If it’s a first-time client, don’t do this unless it’s a reputable company you already know,” she cautioned.

Protecting Your Events: Practical Steps

“Awareness and verification are the first lines of defense,” said Pam Lindemoen, chief security officer and VP of strategy at the Retail & Hospitality ISAC, whose members include Marriott, Wynn, Hyatt, Choice Hotels, and United Airlines. 

“Always confirm vendor details through a known phone number, not just email, and use secure, traceable payment methods. Collaboration is also critical, sharing information about scams can stop them from spreading.”

Request references, check online reviews, and confirm business licenses or insurance of vendors interested in partnering with you, said Merrick. She also recommends using phone or video calls to validate new contacts.

Merrick also recommends avoiding cash or wire transfers to new vendors. Credit cards and other traceable methods are safer.

In addition, detailed contracts should be mandatory with clear refund and cancellation policies agreed upon before deposits are made.

“Digital vigilance is imperative,” said Merrick. “Emails and links should be scrutinized before clicking on them. Urgent payment requests should be seen as red flags. Planners can’t be too careful in this day and age.”