Online fraudulent agencies – more needs to be done

IT’S a global trend.
Professional-looking
websites that offer amazing
deals for customers pop up
online; they entice customers
to pay upfront and then
shut down a few months
later. These fraudsters then
launch another website a few
months later and repeat the
scam.
For suppliers, these
fake travel agencies are a
headache as there is no
effective way to ‘watchdog’
the Internet and see where
their logos are being used
fraudulently. There is no
doubt that these stories
taint the whole industry and
leave the public confused
and angry, says John Ridler,
spokesperson for Cullinan
Outbound Tourism. “We
are vigilant and only a few
months ago we arranged
to have our logo removed
from the website of an
unscrupulous operator in
Cape Town.”
“Where we are alerted,
we ensure that our logo is
removed and, if necessary,
we will take legal action,”
says Cathie Bester, national
sales manager of World
Leisure Holidays. But this
activity is difficult to monitor.
Educating the public about
the dangers of fraudulent
agencies has become crucial.
There is great concern from
members over the impact
fraud has on the sector, says
Otto de Vries, ceo of Asata.
“One must remember that
in an unregulated industry,
anyone can effectively
start up a ‘so-called’ travel
agency. Asata remains
a voluntary body and it
is therefore crucial that
members stand behind the
Asata brand, promote it and
proudly display it in their
communications and marking
strategies.”
Otto adds that there has
been a significant increase
in the number of enquiries
Asata receives on a daily
basis from customers asking
if the agency they are about
to engage with is a member,
“which means Asata’s
awareness in the consumer
space is growing,” he says.
Consumers need to take
more accountability and
become savvier, says Wally
Gaynor, Club Travel md. “We
now live in a different world
and consumers have to
take responsibility for their
choices. If I were a consumer
buying air tickets I would
insist on paying by credit card
so that if there is a problem
with the agent or the airline I
can get my money back.”
Sean Hough, ceo of
Pentravel, agrees.
“Customers need to wise
up. They should only book
with known brands, check
them out or get a referral
from someone. It’s not hard
to vet a company before you
do business with them.”
There is a need for police
and banks to share their
knowledge of fraudulent
activity with the e-commerce
community, says Travelstart’s
fraud specialist, Ro Paddock.
A centralised hub should be
set up where e-merchants,
police and banks can discuss
fraudulent activity and work
together to combat fraud,
she says. “More vigilance
from the consumer and
co-operation between police,
banks and e-commerce
merchants would undoubtedly
improve the travel industry.”
International organisations
such as Abta (African
Business Travel Association)
and ASTA (American Society
of Travel Agents) work closely
with governments and the
police to ensure there is zero
tolerance of fraudsters in
the travel industry. Findings
from a report compiled by
the City of London Police
found that an estimated
£2,2million (R45m) was
stolen from holidaymakers
and other travellers in 2014,
with the most common type
of crime involving fraudsters
hacking into the accounts
of owners on well-known
accommodation sites. Abta,
in association with the City of
London Police, then launched
a campaign to educate
holidaymakers of the dangers
of holiday booking fraud.