Almost 6,000 unsuspecting UK travellers lost a total of £7.2 million from holiday booking fraud last year.
The number of reported cases rose by almost 20% from 2015 from 4,910 to 5,826 with an average loss of £1,200 per person.
The most common types of fraud involve the sale of airline tickets, booking accommodation online and timeshare sales.
But Abta, the City of London Police and fraud prevent body Get Safe Online believe that these figures are only the tip of the iceberg with many victims not reporting the fact that they have been defrauded.
In addition to financial loss, more a quarter (26%) of victims say that the fraud had also had a significant impact on their health or financial well-being.
Almost 260 people said the impact on them was severe, meaning that they had to receive medical treatment or were at risk of bankruptcy.
The two age groups most commonly targeted are those aged 20-29 and 30-39, with older generations less likely to fall victim, particularly those over 50 who are perhaps more wary of ‘too good to be true’ offers.
The majority of those who are defrauded pay by methods such as bank transfer or cash with no means of getting their money back.
Some fraudsters now actively encourage this by claiming that only these payment methods are protected by their own bogus insurance schemes.
The number of people reporting travel fraud to the police jumps in the summer and in December as scammers target the most popular travel periods.
Customers may be particularly vulnerable this year as the overseas travel industry is reporting good early booking levels with accommodation and flights at a premium.
Fraudsters could take advantage of this by offering “good deals” over the summer. These will then fail to materialise, leaving people out of pocket and with either no flights or nowhere to stay.
Abta chief executive Mark Tanzer said: “Abta is regularly contacted by members of the public who have been caught out by increasingly sophisticated travel related frauds.
“We know at first-hand that the loss and shock of finding that your flight or holiday accommodation has not been booked can be very significant.”
Action Fraud deputy head Steve Proffitt said: “We recommend that people are thorough when researching their travel arrangements and book directly with an airline or hotel, or through a reputable agent. When deciding to deal directly with a property owner or letting agent, ask them questions about the booking, room, location and area.
“From fraudulent flights to non-existent accommodation, the impact of falling victim to holiday fraud can be far greater than the financial loss and we hope that by raising awareness, people will feel better able to protect themselves from being a victim of fraud.
“We urge anyone who believes they have been a victim of fraud to visit actionfraud.police.uk and report the incident.”
Tony Neate, of Get Safe Online, said that holidays are the perfect opportunity for cybercriminals to swindle unsuspecting victims.
“Holidays are big-ticket items for many of us, so it’s important that you take extra care when booking your holiday or flights online,” he said.
“Always do as much research as you can about the organisation you’re booking through, and ensure that they are a reputable travel operator that is a member of a recognised trade body like Abta.
“By booking in haste you could not only risk losing a huge amount of money, but also disappoint family and friends when it comes to that long-awaited escape.”
Types of holiday booking fraud:
A total of 5,826 cases of holiday booking fraud were reported to national fraud and cyber crime reporting centre Action Fraud in 2016. The most common types of 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 customer believes they are booking a flight and receives a fake ticket or pays for a ticket that never turns up. Flights to Africa and the Indian sub-continent were particularly targeted, suggesting that fraudsters are aiming at the visiting friends and family market and may well be making use of lack of knowledge of the strict regulations in place for the legitimate UK based travel industry.
Sports and religious trips – a popular target for fraud due to limited availability of tickets and consequently higher prices.
Timeshares and holiday clubs – The sums involved with this form of fraud are particularly high with victims often losing tens of thousands of pounds each.
Examples include:
• John from Tamworth, booked a villa last March for a December holiday in the Canary Islands. He paid £930 to the purported owner of the villa to secure the booking.
At a later date, he wanted to check his flight details and book a car for the trip but could not find the website he had booked through.
Having used a search engine to try and find the website, he came across several Trip Advisor reviews saying that the website was a scam. John has since tried to call the supposed villa owner but with no luck.
• Stephanie from London, paid £410 for a flight from Heathrow to Nigeria and received the flight e-ticket, however there was no terminal on the ticket.
When she arrived at Heathrow they had no record of her booking. She has attempted to contact the flight company and was told she would receive a refund but this has not been sent. Further calls by Stephanie to the company have not been answered.