Holidaymakers who make false sickness claims could face criminal charges as police seek to clamp down on the growing trend.
City of London Police insurance fraud detectives are assessing material regarding tourists accusing their operator or hotel of giving them food poisoning and attempting to extract damages.
The disclosure came over the weekend as it was revealed that two Britons suspected of encouraging holidaymakers to make false compensation claims were arrested on Friday in Majorca.
Police on the island are understood to be investigating whether the suspects were acting on their own or with one of the rogue claims firms.
The pair were believed to be targeting holidaymakers in hotels in Alcudia, the Mail on Sunday reported. They are expected to face a judicial investigation after being questioned by police.
Separately, one firm told a reporter from the newspaper posing as a tourist who had fallen ill to pretend his entire family had been affected so he could claim even more money.
Abta reports claims are up on average 500% since 2013 while Tui, which operates the all-inclusive operator First Choice, has seen a 1,400% rise.
The vast majority of these claims are believed to be fake or exaggerated as they are being encouraged by claims management companies promising significant financial rewards to holidaymakers for making a claim.
Travel Weekly Fight Fake Claims campaign, launched last week, is demanding the law is changed to limit the legal costs these firms can make, and to bring gastric illness compensation in line with other personal injury claims.
Stephen Mason, a senior partner at Travlaw, said the threat of criminal charges was a “sadly necessary step”.
He told the Daily Telegraph on Saturday: “I’m sure the travel industry takes no pleasure at all in reporting customers to the police but so badly out of hand is the issue of unjustified illness claims that it is necessary to make a few examples.
“People are encouraged into [making claims] by claim management companies who make it sound a long way from criminal and people need to know that it is.”
Abta has warned that submitting false claims could mean a fine and a criminal record.
Sarah Hill, head of fraud at insurance specialist BLM Law which is advising travel companies on how to pursue guests attempting to extort money from them, said the “immediate impact [of false claims] will be higher costs for consumers, but if it isn’t addressed it could put travel firms out of business”.
