We should all share knowledge to help in fight against fraud

As a travel agent community, we have reached a tipping point. We need to stand up to fraud and be more vigilant than ever. 

The landscape of our industry is shifting rapidly. With the increasing ease of becoming a travel agent – often requiring zero qualifications, no experience and minimal startup costs – the barriers to entry have vanished. Combine this with advances in AI-generated deception and a global spike in cybercrime, and it’s clear we must have our wits about us at all times.

Over the last year, our business has had to navigate several instances of fraud. I therefore wanted to share my perspective on how we could have avoided these and, more importantly, what we should be lobbying for with merchant card providers to ensure our survival.

False trust

It is vital to understand that professional fraudsters are often master manipulators; they start their plan months before the crime. They ‘groom’ agents by researching your personal and professional life on social media. They will mention people in your circle, reference local events and craft believable back stories to build a rapport.

By the time they return to make a booking, a false sense of trust has been established. You feel like you ‘know’ them, which lowers your guard when it comes to taking payment. 

These bookings are almost always at the last minute – typically within a few weeks of travel. This is a deliberate tactic, as it aligns perfectly with the prime timeframe for a chargeback to be processed before the travel has even concluded.

In an industry where we operate on small margins, the risks we are taking just to do business are becoming unsustainable

My advice: unless a client has a proven booking history with you, always request a bank transfer for last-minute travel. Do not be afraid to verify recommendations. If a client claims a mutual friend sent them, call that friend. Ensure there isn’t a chain of fraudsters involved in a coordinated scam.

While collecting passport copies and utility bills for address checks is a helpful deterrent, the reality is that agents are being forced to act like private investigators. If you absolutely must take a card payment, ensure you are following the most stringent data security protocols – but remember that a ‘secure’ link is only as safe as the person at the other end of it.

Chargeback fightback

We are also seeing an increase in ‘friendly fraud’ – customers who go on holiday but then approach their credit card company to initiate a chargeback, claiming the ‘goods or services’ were defective. 

The current system is heavily weighted against the merchant. Card companies often trigger a chargeback automatically, regardless of the evidence, leaving the agent to spend hours defending their position. Historically, a dissatisfied client would complain to the operator or escalate it to Abta. Today, many clients treat the chargeback button as a shortcut to a refund, often unaware that the financial hit doesn’t land on the bank but directly on the travel agent.

We pay significant merchant fees to credit card companies, yet receive almost zero protection in return. As an industry, we must lobby for these providers to invest in understanding the unique legal layers of travel. They should be required to investigate the validity of a claim before snatching funds back from small businesses.

Finally, we must address the internal threat of third-party card fraud. We have even witnessed cases where individuals pose as independent agents, using our secure payment links to pay for their own holidays using their unsuspecting client’s card details.

In an industry where we operate on small margins, the risks we are taking just to do business are becoming unsustainable. 

To help combat this, we have compiled our findings into a Savvy Traveller Guide, designed to educate customers and agents on what to look out for. By sharing knowledge, we can all strengthen our community and reduce the risks of fraud.