Fraud arrest imminent

THE NET is closing in on a fraudster involved in a number of scams involving ABTA members, the association has revealed.

Head of financial services Mike Monk would not reveal details of an ongoing police investigation but confirmed an arrest is imminent. “Police are now investigating an individual who has been involved in a number of frauds concerning ABTA members,” he said.

The development was reported to last week’s Greater London regional ABTA meeting where Monk faced questions from members about proposed financial and membership changes due to be ratified at ABTA’s annual general meeting on April 26.

London members were critical of ABTA’s plans to scrap its auditing requirement, ditch its consumer protection role and allow travel companies to arrange their own bonding. – with the fraud case highlighting how the trade offers easy pickings for con artists.

Samson Travel owner David Kent said: “Aren’t we watering down the ABTA symbol that we have spent 50 years building?”

According to Monk, fraudulent claims cost ABTA £2 million annually and ABTA had to act to reduce the cost to members.

“Some consumers use a mate’s invoices to claim refunds. Some rogue traders advertise massive discounts for cash payments but never make the bookings,” he said. “To minimise exposure to these fraudsters, if the booking is not made, we will not pay.”

Newly appointed regional chairwoman Jacqueline Steadman wants ABTA to help agency owners educate counter staff about the changes. “There is confusion at the sharp end,” Steadman said.

ABTA is planning a national press and leaflet campaign advising consumers to get confirmation invoices and check a booking has been made before travelling.