Hundreds hit by holiday scam

By Ed Monk for Thisismoney.co.uk
Updated: 07:14 EDT, 21 September 2006

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BUSINESSMAN Gary Wilcox thought that he had taken every precaution when he booked a week in Lanzarote with his wife and two sons.

But a sophisticated internet scam has robbed him and his family of their Canary Islands holiday.

Gary, the director of a logistics company, used online travel company Unbeatableholidays.com to book the trip last August. The prices on offer were easily the cheapest he could find - £1,200 compared with £1,800 from other operators – but Gary wouldn't commit until he knew more.

Further research confirmed the hotel he picked from the site existed and suited his family's needs. A check on the ATOL – Air Travel Organisers' Licensing - website showed Unbeatableholidays.com had applied for its licence.

Worried that he would not be fully protected by ATOL regulations without a full licence, Gary phoned the travel company using the number given on the site and was told special insurance arrangements had been made until a licence came through.

When insurance documents arrived in the post, Gary's concerns were laid to rest.

It was only when he rang Unbeatableholidays.com ahead of the family's scheduled departure on 28 August that the alarm bells started ringing. 'The number given on the website was a mobile and it was switched off every time I rang.' said Gary, who lives in Sandhurst, Berkshire.

'I Googled Unbeatableholdiays.com and saw entries on a holiday website from someone warning that they had lost their money. That's when I feared the worst.'

Within a week, internet messageboards were flooded with stories similar to Gary's. Complaints centred on a number of companies – Unbeatableholidays.com, Sunmedresorts.com, Holidaysforunder200pounds.com, Holidayrez.com and Holidayez.com.

Chris Brown, director of Holidaywatchdog.com, said: 'It has been the biggest incident of this type that we have seen. It started with one but there were more and more posts about it every hour. Around 10,000 people have looked at the thread and so far 290 people have posted with their experiences. Most of these have been ripped off.'

Unbeatableholidays.com and the others had all been trading under the names Fleetwood Holiday Ltd or Sun Orient Ltd, based in Islington, north London. Two people have now been charged with conspiracy to defraud - but any criminal action is no guarantee that the victims of the scam will get their money back.

The insurance Unbeatableholidays.com offered had been secured under false pretences and no payouts will be made. Bookings made with debit or credit cards may have protection if the losses are regarded as non-delivery of goods or services.

Card companies will need proof that the holiday bookings do not exist. In Gary's case, his card company M&S Mastercard, has requested all correspondence between Gary and the hotel to confirm that the booking was bogus. Anyone who paid by cheque has little hope of any recompense.

Save money on travel and holidays

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How can you be sure your online holiday is legitimate?

Your first priority should be to check for travel industry seals-of-approval on any online travel website you use. ABTA, the Association of British Travel Agents, and ATOL only allow their logos to be used by approved companies. ABTA and ATOL membership will give you some protection if you lose your money through fraud or if the company goes bust.

If you are thinking of using an online travel operator, check that there are contact phone numbers for you to call. Most above-board operations will use 0800 or 0870 numbers.

Chris Brown from Holidaywatchdo.com said: 'You would be forgiven for thinking these sites are OK. There are even some sites that are legitimate but don't carry the ATOL or ABTA logos. A general rule is that if prices look too good to be true, they probably are.'

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