Tuesday 19 April 2016

Travel fraud cost UK holidaymakers £11.5 million in 2015

THE ASSOCIATION OF BRITISH TRAVEL AGENTS (ABTA), the City of London Police, and Get Safe Online have joined forces to warn consumers about the dangers posed by holiday booking fraud. #Scams are more frequent due to the rise of online bookings 

Findings in a report by the City of London Police’s National Fraud Intelligence Bureau reveal the scale of reported crime and expose tactics used by fraudsters who stole £11.5 million from holidaymakers and other travellers in 2015.

According to the report, there has been a rise of 425% in the amount reported lost to travel fraudsters – up to £11.5 million in 2015 from £2.2 million in 2014 – although part of the increase is likely to be due to crime previously going unreported.

The most common fraud type relates to the sale of airline tickets, but there has also been a large increase in the number of owner accounts being hacked into on popular sharing accommodation websites.

Losses for individuals can be substantial, with the average loss being almost £3,000. Almost half of victims (44%) said the fraud had also had a significant adverse impact on their health.

There are distinct spikes of reported fraud in the summer months and in December, indicating fraudsters are targeting holidaymakers and people booking last-minute flights home for Christmas. The majority of those who are defrauded pay by methods such as bank transfer or cash with no means of getting their money back.

The most common types are:

Holiday accommodation – Fraudsters are making full use of the internet to con holidaymakers by setting up fake websites, hacking into legitimate accounts and posting fake adverts on websites and social media.

Airline tickets – where a customer believes they are booking a flight and receives a fake ticket or pays for a ticket that never turns up. In 2015, flights to Nigeria, India, and Pakistan were particularly targeted.

Sports and religious trips – a popular target for fraud due to limited availability of tickets and consequently higher prices. It is anticipated that in 2016, both the European Football Championships in France and the Olympics in Rio de Janeiro will attract fraudsters.

Timeshares and holiday clubs – The sums involved with this form of fraud are particularly high, with victims losing between £9,000 and £35,000 each.

The City of London Police, 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:

Stay safe online:  Check that 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 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 recognized trade body such as ABTA. If you have any doubts, you can verify membership of ABTA online, at www.abta.com.

Pay safe: Never pay directly into an owner’s bank account. Paying by direct bank transfer is like paying by cash – the money is very difficult to trace and is not refundable. Wherever possible, pay by credit card (or a debit card that offers protection).

Check paperwork: Study receipts, invoices, and terms and conditions, and be very wary of any companies that don’t provide any at all. When booking through a holiday club or timeshare, get the contract 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 on 0300 123 2040 or register via www.actionfraud.police.uk.


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