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‘Look before you book’, says new campaign to stop holiday fraud

Your Money
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Your Money
Posted:
Updated:
19/04/2013

ABTA – The Travel Association has launched a campaign to warn the public about the dangers posed by holiday booking fraud.

According to an ABTA report, fraudsters are conning unwary travellers out of millions a year, with accommodation, group tours and airline bookings most vulnerable.

The Association has joined with the Get Safe Online, Action Fraud and the City of London Police’s National Fraud Intelligence Bureau (NFIB) to encourage would-be travellers to ‘look before you book’ and to run the necessary checks to prevent falling prey to these scams.

Deputy director of the NFIB, DCI Pete O’Doherty said: “The internet has revolutionised the way we look for and book our holidays.

“Unfortunately it is also enabling fraudsters to prey upon people’s desires to create that perfect break for friends and family, using online offers of villas, hotels and flights that are either double-booked or simply don’t exist.

“Last year the NFIB continued to receive hundreds of reports of holiday fraud but the actual number of victims could be much greater, with some people still reluctant to come forward and say they have fallen foul of the fraudsters.

“Only by knowing the true nature and scale of the problem can we identify and effectively target those most responsible for this damaging and distressing crime, which is why it is so important for victims of holiday fraud to contact Action Fraud.”

What is holiday booking fraud?

Holiday booking fraud is when consumers hand over money only to discover the holiday, accommodation or flight they paid for doesn’t exist, or the booking hasn’t been made.

Fraudsters are conning unsuspecting holidaymakers out of thousands of pounds each year or leaving them stranded with nowhere to stay through fake websites, false advertising, bogus phone calls and email scams.

Types of holiday fraud

New research by the NFIB shows close to 1,000 cases of holiday fraud reported in 2012 costing consumers approximately £1.5M.

As this is the first time the NFIB has started to quantify holiday booking fraud it estimates that these figures may represent just the tip of the iceberg.

The most common types of holiday booking fraud are:

 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. This is the most common type of booking fraud, accounting for 45% of holiday booking fraud reported to the Police in 2012.

 Holiday accommodation – a third of holiday fraud victims in 2012 were scammed by the fraudulent advertisement of holiday villas and apartments, with some arriving at their destination to discover they had nowhere to stay.

A high percentage of cases were reported in Spain and in London during the Olympics.

The rise of self-catering villa rental sites where owners advertise directly to the consumer has made this a common target for fraudsters.

A YouGov poll for ABTA shows that one in five adults say they have paid directly for private accommodation into the owner’s bank account, rising to a third of those with three or more children.

 Package holiday fraud – fraudsters like to target those booking group, sports and religious packages with deals and special offers.

Major events in long-haul destinations are a particular target for fraudsters, such as the pilgrimage to the Hajj and major sporting events such as The Ashes.

This is because these sorts of events are often expensive due to high demand so deals can be attractive and many travellers are booking on behalf of a group, meaning that the value of the booking is high.

 Visa applications – particularly the ESTA visa requirement for the US, also appear to be an emerging target for fraudsters.

Who is at risk?

Anyone booking a holiday is at risk. The report found males are slightly more likely to have reported a case of holiday fraud than females and those aged 30-49 were also more likely to have been a victim of holiday fraud.

Fraud applies to both overseas and UK bookings.

Certain behaviours can increase risk, particularly when booking online, such as not researching the holiday company properly and handing over large sums of for a deposit. 


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