Holiday scamsBogus travel companies

If a deal seems too good to be true then it probably is

Going on holiday is the highlight of the year for many people but nearly half the UK population has been targeted by a scam at some point in their lives, at home or abroad. Many won't admit to it because they're far too embarrassed.

The Office of Fair Trading (OFT) estimates that UK consumers lose around £3.5 billion each year to scams.

Once someone falls for one scam, there is a 30% chance they will fall for another within a year.

Head of the Scambusters team at the OFT, Mike Haley said: ‘Once you’ve fallen for one scam, it's likely your name and address will be added to what we call the “suckers” mailing list, and you may be bombarded with others.’

Beware the bogus company

The internet, Ceefax and Teletext can be appealing stomping grounds for unscrupulous holiday companies. Fraudsters enjoy the anonymity of these outlets, enabling them to fleece cash from unsuspecting consumers with relative impunity.

One case of possible internet fraud involved several websites, including holidaysforunder200pounds, sunmedresorts and unbeatableholidays. Thousands of people are believed to have been scammed by purchasing holidays online that didn’t exist, with some individuals reporting losses in excess of £1500, according to postings on holidaywatchdog.

Four individuals connected with the company sunmedresorts stood trial for the alleged scam in January 2008.

Stories such as these are alarming and can discourage us from booking our holidays online. But don’t panic too much as in a recent survey carried out by Which? Holiday in which we spoke to 766 people who had taken a holiday or short break abroad or in the UK in the past 2 years, only 15 people said they had fallen victim to a holiday company scam.

Tips

Here’s some advice to safeguard yourself from being scammed:

• If a deal seems too good to be true, then more often than not, it is. Steer well clear and look for a holiday elsewhere.
• Check if the company is a member of a trade organisation such as ABTA or AITO. Don’t just take the company’s word for it though, confirm it with the relevant trade body.
• Limited companies in the UK will be registered with Companies House so contact them and check the company is legitimate. 
• Take time to find out as much about the company as possible, then consider carefully if you want to spend your hard-earned money with them. 
• Be suspicious if there is an unusually high credit card loading fee, which encourages you to pay cash. Or if you are told a company does not accept credit cards – avoid! Book your holiday with a company that does. 
• The Package Travel Regulations will also protect you if you purchase from a reputable tour operator or company. See our Tour operator survey to see the companies our members are travelling with and are most satisfied with.