Jet2holidays is hiring private detectives in resorts to stop touts coaxing holidaymakers into making false sickness claims.
The move comes after a dramatic rise in the number of fraudulent claims being made by Brits abroad.
The trend has led to Spanish hoteliers threatening to scrap all-inclusive packages or to ban British holidaymakers altogether.
Spanish hoteliers told TravelMole that fraudulent sickness claims from mainly British holidaymakers was costing them more than €60 million a year.
Jet2holidays said their private detectives will act on customer tip-offs and will report any activity to the tour operator and to local police.
According to hoteliers, touts and claims companies have been brazenly handing out leaflets in resort telling British holidaymakers they can cover the cost of their trip by just filling out a form and buying a packet of diarrhoea tablets while away.
The Foreign Office has already updated its travel advice to Spain to highlight the issue.
It warns holidaymakers that making a false or fraudulent claim could lead to legal proceedings in the UK or Spain.
"The net really is tightening on this dishonest and deceitful practice, and we will not relent until these touts stop trying to take advantage of British holidaymakers," said Jet2holidays.
