A report compiled by our partner Action Fraud, which is run by the City of London Police, reveals almost 5,000 people were victims of holiday fraud in 2017 and exposes the common tactics used by fraudsters.
More than the average amount lost per person was over £1,500, an increase of 25% year on year. These individual losses are substantial, but this form of fraud also has other severe effects with almost half (2,245) of victims saying that it also had a significant impact on their health or financial wellbeing. Most worryingly of all, 575 people said the impact on them was so severe that they had to receive medical treatment or were at risk of bankruptcy.
The most common types of fraud relate to the sale of airline tickets (47%) and accommodation booking (38%).
4,700 people told Action Fraud that they had been the victim of a travel related fraud in 2017.
Action Fraud believes that the actual figure is much higher, with many victims not realising that they should always report the fraud to Action Fraud.
In common with previous years, the numbers of people reporting travel fraud jumps in the summer and in December. This is a clear indication that fraudsters are targeting the peak holiday periods and people who are going home to visit friends and family. Fraudsters know that demand will be high and availability low, so good value bookings will be harder to find with customers on the lookout for reasonable prices.
The visiting friends and family market is particularly attractive to fraudsters offering fake flight tickets and package arrangements. Fraudsters may also be targeting individuals travelling home to visit family in time for public or religious holidays. Where destinations were reported by victims, 54% said they had been intending to travel to Africa and 24% to Asia.
“Holidays are the perfect chance to relax and unwind, however as this year’s statistics show, they are also an opportunity for fraudsters to trick you out of your hard-earned money.
“The startling emotional impact of falling victim to holiday fraud is highlighted in the latest figures, as 575 people reported that the harm to them was so severe, they had to receive medical treatment or were at risk of bankruptcy.
“This is why we are raising awareness so that people feel better able to protect themselves from being a victim of fraud. We know that fraudsters are increasingly using more sophisticated ways to trick their victims, which is why it is important that you do your research when making travel arrangements. If you think you have been a victim of fraud, contact Action Fraud.”
Director of Action Fraud, Pauline Smith
“Holidays and trips abroad are one of the biggest purchases we’ll make each year so keep an eye out for tell-tale signs something isn’t quite as it seems. It can be quite tempting to get lured in by the offer of a cut price flight or a deal on accommodation when you are caught up in the excitement of booking a holiday. Small steps can stop you getting caught out by a holiday scam through such as researching the company you are booking through, especially ones that aren’t mainstream operators. Check well known review sites too so you can see what previous customers’ experiences have been and, where possible, pay by credit card to get extra protection in case anything does go wrong.”
Tony Neate of Get Safe Online
In 2017, the most common types of holiday booking fraud reported to Action Fraud related 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 person believes they are booking a flight and receives a fake ticket or pays for a ticket that never turns up. In 2017, flights to Africa and the Indian sub-continent were particularly targeted.
- Sports and religious trips – a popular target for fraud due to limited availability of tickets and consequently higher prices.
- Caravanning – Action Fraud reported a number of people reporting being the victim of fraud relating to mobile home holidays.
- Top tips to avoid becoming a victim of travel fraud:
- 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: Wherever possible, pay by credit card and be wary about paying directly into a private individual’s bank account.
- Check documentation: You should study 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.
- Trust your instincts: If something sounds too good to be true, it probably is.
- Report it: Victims should contact Action Fraud.
- Get free expert advice: For further advice on how to stay safe when booking or researching travel online, visit Get Safe Online.