7th May 2019
Holiday Fraud On The Increase
In 2018 UK and other traveller’s holiday makers were defrauded by over seven million pounds, with airline tickets and accommodation being the main targets.
ABTA & Action Fraud and Get Safe Online are joining forces to warn holidaymakers and travellers about the dangers of holiday booking fraud and how to spot and avoid travel related fraud. The report from Action Fraud and the National Fraud Intelligence Bureau highlights the areas of travel most often targeted and the methods used by fraudsters to defraud the travelling public.
Last year Action Fraud received over 5,000 reports that amounted to a total of just over £7,000,000 lost by holidaymakers and travellers in related fraud, an increase on the previous year, when £6,700,000 was reported lost by 4,382 victims. The average amount lost was £1,380 per person but, it is not just the financial cost, victims have to deal with it is the significant emotional impact caused by this type of crime. It is believed that the actual total figures relating to travel fraud may be far higher, as many victims may feel too embarrassed to report the travel fraud.
The sale of airline tickets accounts for over half, 53%, of the crimes reported. Consistently throughout the year reports were made, however the largest individual loss, of over £425,000, was made in August 2018.
A quarter of the fraud reports were in relation to the sale of accommodation, which peaked in October; which indicates that many victims report their loss at the end busiest time of the year for travel, the summer holidays, this is the optimum time for fraudsters.
Tony Neate, Chief Executive of Get Safe Online, said:
"Although it can seem alarming that reported holiday booking fraud is rising, it shouldn’t be a reason to stop you from booking your holiday online. Instead, we urge people to take some time before booking a holiday to read through our safety tips and familiarise themselves with the small changes they can make to ensure they don’t get caught out by cybercriminals. Customer reviews are invaluable but don’t rely on just one review, research thoroughly. Look out for companies that are members of professional bodies such as ABTA and be wary of paying a private individual by bank transfer, even if you are offered a discounted rate. Paying by credit card will offer you much more protection from fraud. Finally, trust your instincts, don’t get rushed into making impulsive decisions if something doesn’t feel quite right."
Mark Tanzer, ABTA Chief Executive said:
"ABTA sees at first-hand the damage caused by travel fraudsters after customers find out their much anticipated holiday or trip to visit family and friends does not actually exist. This is why ABTA, Action Fraud and Get Safe Online work together to make people aware of the steps they can take to avoid falling foul of a holiday scam.
The cost to victims is not just financial; this crime causes very real emotional distress. Fraudsters are using increasingly sophisticated methods to target destinations and times of year when demand is high and availability limited, as they know people will be looking for good deals. As victims often find out just before they travel or even in resort that they have been defrauded, it can then be very difficult and expensive to obtain a legitimate replacement booking compounding the financial costs and emotional distress suffered by victims."
Michael Masterson, Cover4insurance Client Services Manager said:
"With our increasingly online lifestyle, it is all too easy to become the victim of cybercrime and online fraud.
It is therefore essential, in the fight against such crimes that you should protect yourself with a personal cyber protection insurance policy just in case the fraudsters target you."
Types Of Holiday Booking FraudSource: Get Safe Online
In 2018 over 5,000 cases of holiday and travel booking fraud were reported to Action Fraud. The most common types of fraud related to:
- Airline tickets — As well as flights relating to holidays, fraudsters particularly target the visiting friends and family market with flights to Africa and the Indian subcontinent dominating the list of affected destinations. The campaign partners believe that fraudsters may be exploiting lack of knowledge of the strict UK regulations in place governing the sale of airline tickets.
- Accommodation Fraud — Fraudsters are using increasingly sophisticated methods, with very professional and convincing websites offering upmarket villas for rent. Although some of these villas are fictitious many actually exist, but are being offered by fraudsters without the legitimate owner’s knowledge. Spain and France are the two destinations most commonly targeted.
- Religious trips — Hajj trips are particularly attractive to fraudsters as the amounts of money involved are substantial with the average loss totalling almost £10,000 per reported case.
Top tips to avoid becoming a travel fraud victimSource: Get Safe Online
Action Fraud, ABTA and Get Safe Online have published advice on how to avoid becoming a victim of holiday booking fraud — and on how victims should go about reporting it. This advice includes the top tips below:
- Stay safe online: Check the web address is legitimate and has not been altered by slight changes to a domain name — such as going from .co.uk to .org
- Do your research: Don’t rely on just one review - do a thorough online search to check the company’s credentials. If a company is defrauding people there is a good chance that consumers will post details of their experiences, and warnings about the company.
- Look for the logo: Check whether the company is a member of a recognised trade body such as ABTA. If you have any doubts, you can verify membership of ABTA online, at www.abta.com.
- Pay safe: Wherever possible, pay by credit card and be wary about paying directly into a private individual’s bank account.
- Check paperwork: You should study receipts, invoices as well as terms and conditions. Be very wary of any companies that don’t provide any at all. When booking through a holiday club or timeshare, get the contract thoroughly vetted by a solicitor before signing up.
- Use your instincts: If something sounds too good to be true, it probably is.
- Report it: Victims should contact Action Fraud via www.actionfraud.police.uk .
- Get free expert advice: For further advice on how to stay safe when booking or researching travel online, go to https://www.getsafeonline.org/shopping-banking/holiday-and-travel-booking/ .