Travel fraud cost UK holidaymakers £11.5m in 2015
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ABTA, the City of London Police and Get Safe Online have joined forces to warn the public about the dangers posed by holiday booking fraud.
Findings from a new report, compiled by the City of London Police’s National Fraud Intelligence Bureau, reveal the scale of reported crime, and expose common tactics used by fraudsters who stole £11.5 million from unsuspecting 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 the crime previously going unreported.
The most common fraud type relates to the sale of airline tickets and there has also been a large increase in the number of owner accounts being hacked into on popular sharing accommodation websites.
Losses to the individual can be substantial with the average loss being almost £3,000. Losses are not just financial, with almost half of victims (44%) saying that the fraud had also had a significant 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 age group most commonly targeted is those aged 30-49, many of whom will have young families. 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 report reveals that during a 12-month period, 4,910 cases of holiday booking fraud were reported to Action Fraud. The most common types relate to:
- 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, suggesting that fraudsters are going after people planning to visit friends and family.
- 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, accounting for 26% of the total reported amounts lost.
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 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 just 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 recognised 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: You should 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 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 on 0300 123 2040 or register via www.actionfraud.police.uk.
Mark Tanzer, ABTA chief executive, said: “Every year ABTA is contacted by members of the public who have been victims of travel-related fraud. The costs to these people are not just financial. They also have to deal with the severe disappointment of holidays or trips to visit loved ones being cancelled at short notice. Fraudsters are always on the lookout for new opportunities, making full use of the internet with clever and unscrupulous scams. ABTA would strongly urge the public to follow the booking advice which we have created in partnership with the City of London Police and Get Safe Online to stop these crooks in their tracks.”
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