If you haven’t got around to planning your holiday for this year, you'll likely be on the lookout for a bargain – but if you’re booking online, be wary of what you’re actually signing up for.
In 2023 there were 6,640 reports of holiday fraud (where you pay for a getaway, only to find that some or all of it is fake), costing holidaymakers a combined £12.3 million, according to Action Fraud, the UK's national reporting centre for fraud and cybercrime. That works out at an average loss of £1,851 for each victim.
Caroline Abrahams, Charity Director at Age UK, says: “Regrettably, many hotel, villa, and flight scams lure unsuspecting people with promises of dream holidays that simply aren't real.
“The harsh reality is that you might not realise you’ve been a victim of a scam until it’s too late—when you turn up at the airport or resort.
“This can be financially and emotionally devastating, potentially leaving you with a feeling of shame that can persist for years. It's crucial to be aware of these risks and take proactive steps to protect yourself.”
While there are plenty of legitimate deals on amazing holidays to be found, it’s easy for scammers to lure you in with fraudulent and non-existent deals that can cost thousands of pounds.
There are a variety of methods that fraudsters use to try and steal your hard-saved money for the relaxing getaway you’ve been yearning for – knowing their tricks will help you avoid their traps.
Fraudsters will often try and snare you with bargain holiday packages, time-limited discounts, or last-minute availability in an otherwise fully-booked hotel or resort.
“When looking for a holiday or last-minute break, it’s easy to be tempted by promotional offers and cheap tickets – however, it’s important to be on the lookout for “too good to be true” offers as they might be a scam,” says Paul Maskall, Principal of Fraud & Cyber Crime Prevention at UK Finance, trade association for the UK banking and financial services sector.
If you’re buying a holiday with flights (or flight only) some scams add fake ATOL details. ATOL stands for Air Travel Organisers’ Licensing and helps protect you if your travel operator goes bust.
When on the site, look for ABTA and ATOL numbers and logos – you can confirm details are legitimate with tools such as Check for ATOL or travel industry trade body ABTA member search, which are free to use.
“A red flag for a holiday scam could also be if the website or company that you’re purchasing from was only launched days or weeks ago, or if you are asked to make a payment outside of the secure payment method on the website,” Maskall adds.
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There are many cases where criminals create fake versions of real websites, often using genuine photos and listings, to convince you to sign up to a non-existent holiday.
“Taking a moment to stop and think before parting with your money or information could keep you safe,” says Maskall. “These scams can be very sophisticated, and criminals will set up fake websites offering ‘cheap travel deals’ which may look like genuine organisations you recognise.
“Could it be fake? Take a moment to verify the address of the accommodation you are booking through web searches and online maps. Read online reviews and contact the company on a number you know to be true. It’s OK to reject, refuse or ignore any requests.
“Only criminals will try to rush or panic you.”
Keep an eye on the web address of the site you’re visiting – this can often be a good hint that something is amiss. If the site has an exclamation mark in a triangle next to it, this can be a sign that it's a scam.
“Subtle changes in the website link (for instance, from ‘.co.uk’ to ‘.org’) can indicate that they are fraudulent so it’s important to double check these,” Maskall adds.
These changes can be very subtle, so be vigilant when checking links: for instance, the addition of ‘S’ to established and legitimate domain names, or using ‘travels’ rather than just ‘travel’ in the main web address.
Holiday scammers pose as agents selling airline tickets that turn out to be fake and simply never arrive, or accommodation that they can’t actually book you into.
“Another prominent scam is where criminals post fake adverts for accommodation, often using images of luxury villas and apartments that don’t exist. These are offered for rent, maybe at discounted prices, and require a deposit to be made which is never returned,” says Maskall.
Sean Tipton, spokesperson for ABTA, agrees that over 50s need to be wary when it comes to seeking out deals for holiday villas.
“Many [over 50s] will be looking for a good quality, good value properties” he says. “Over the years we’ve seen many examples of high-end villas being targeted, particularly at busy times of the year.”
Be wary of how you’re asked to pay – if something feels suspicious about the transaction, take steps to protect yourself.
“It may be a scam if you are asked to pay by bank transfer. You should always use the secure payment options recommended by reputable online travel providers and where possible, use a credit card when making purchases,” adds Maskall.
ABTA warns that scams involving timeshares can lead to thousands of pounds being lost. Typically, owners are sent letters offering bogus legal services, or are sold credits with the promise of greater resort or accommodation choices.
“Criminals may [also] make offers of free holidays to entice people to sign up to their timeshare scams. With this scam, criminals encourage you to attend seminars where you are pressured into committing to a timeshare scheme or holiday club and asked to sign a contract,” warns Maskall.
“Similar to other types of holiday scams, criminals will offer too-good-to-be-true prices and perks before pilling on the pressure to make you sign. Later they charge extortionate fees and the schemes are difficult to get out of.
“If you are thinking of signing up to a timeshare, make sure you pay close attention to the terms and conditions and consult a solicitor if you have any concerns.”
Criminals rely on psychological strategies to make us behave in certain ways, playing on our emotions so that we act before we’ve had the chance to think.
“Scammers are always looking to tap into people's emotions to make their schemes more plausible and likely to work,” says Jenny Radcliffe, Director of Social Engineering at Human Factor Security, and is also known as ‘The People Hacker’.
“Holidays, whether bookings or searches, are a rich target area in this regard as people are looking for good deals, but are unfamiliar with what might be ‘normal’ for different locations, events and activities.
“Regardless of what the message is, or how a deal looks, it’s best to be extremely cautious in these situations - and verify anything before sharing details or parting with cash.
“Don’t be shy of checking with a phone call to companies before clicking through bookings.”
Even if the holiday you book is genuine, don’t forget that entering the holiday spirit could also see you fall foul of criminal activity.
“Don’t fall for hard sell tactics or approaches from sellers on the street or at the beach, and use phone apps for payment (like Apple Pay) for an extra level of protection,” adds Radcliffe.
Using a phone to pay means nobody can ever see your PIN or credit / debit card number, as you can use your face or fingerprint to prove your identity – and each transaction uses a unique code to keep your payment details anonymous.
“Fundamentally, we all drop our guard a little in unfamiliar territory so if something sounds too good to be true, hurries you for a bargain, comes with any kind of emotional story or triggers even the slightest doubt, don’t do it,’ she adds.
“Walk away and ask yourself one thing: ‘If this was my hometown and someone offered me the same thing, would I do it? Would I feel comfortable?’”
If you think you’ve been scammed, don’t panic – help and support is available.
“Contact your bank immediately if you think you’ve fallen for a scam and report it to Action Fraud. If you have visited a website that you think is suspicious you can report it to the National Cyber Security Centre,” says Maskall.
You can report to Action Fraud online, or call them on 0300 123 2040. They’ll review your case and if needed, they will also send details to the police for investigation.
If you’ve paid for a holiday with a credit card and you think it’s a scam, contact your card issuer.
Under section 75 of the Consumer Credit Act, you’re protected if you've spent between £100 and £30,000, and a business fails to supply you with what they’ve promised or if the product or service has been misrepresented.
If you’re entitled to a refund, this will be arranged for you.
Companies that claim to be part of ABTA or ATOL, or who fail to provide you with the service you expect, can also be reported to each organisation.
To stay up to date with holiday and general fraud advice, head to:
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