Cost of travel fraud rises dramatically

The amount of money lost to travel fraudsters increased by 425% in 2015, according to a police report.

Up to £11.5 million was lost by victims of fraud last year, the most ever recorded. This compared to £2.2 million in 2014 and an estimated £7 million the year before.

The report, compiled by the City of London Police’s National Fraud Intelligence Bureau, revealed that 4,910 cases of holiday booking fraud were reported to Action Fraud in 2015.

It showed a distinct spike of reported fraud in the summer months and in December, suggesting fraudsters target people booking last-minute flights home for Christmas.

Most fraud related to the sale of airline tickets but there has also been a surge in the number of owner accounts being hacked into on popular sharing accommodation websites.

The most commonly targeted group are those aged 30-49, many of whom will have young families.

The majority of victims paid by methods such as bank transfer or cash, so have no way of getting their money back.

Losses can be substantial with the average loss being almost £3,000.

Alongside the financial loss, 44% of victims say the fraud also had a significant impact on their health.

The City of London Police, ABTA, and Get Safe Online have launched a campaign today warning holidaymakers about the dangers posed by booking fraud.

"Fraudsters are always on the lookout for new opportunities, making full use of the internet with clever and unscrupulous scams," said ABTA chief executive Mark Tanzer.

The most common types relate to:

Holiday Accommodation
Fraudsters conning holidaymakers by setting up fake websites, hacking into legitimate accounts and posting fake adverts on websites and social media.

Airline tickets
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
Police expect 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.

Holidaymakers are advised to:

Stay safe online
Check the website 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.

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 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.

For a full list of tips to avoid becoming a victim of fraud please see http://abta.com/fraud.