Avoid this costly holiday scam

Bogus holiday rental scams are escalating fast. Find out how you can book your accommodation safely online.

Scams which lure unsuspecting holidaymakers into booking non-existent accommodation are nothing new. But the trouble is incidences of this crime are rising quickly, primarily because holiday booking websites are unregulated. This makes them easy prey for fraudsters.  

But worryingly, according to a recent survey carried out by The Association of British Travel Agents (ABTA) and the GetSafeOnline initiative, two-thirds of us have never even heard of this scam even though it’s one of the most common con tricks which cheat holidaymakers.

How do holiday rental scams work?

There are literally hundreds of websites which offer holiday home, villa and apartment rentals making it difficult to identify which are legitimate and which aren’t. Bogus listings are usually passed off as genuine by copying accommodation details and pictures from bona fide holiday websites, and usually offer seemingly amazing bargains which can’t be beaten anywhere else.

The fake holiday properties may then be advertised on free listings websites such as Gumtree or even on legitimate holiday rental listing sites alongside genuine properties.

The fraudster will likely ask you to pay for the full cost of the accommodation upfront, sometimes many weeks in advance of your holiday, rather than just a deposit. But by the time you discover the accommodation doesn’t actually exist, the scammer has disappeared taking your money with them.

Compensation

Always remember legitimate holiday rental websites aren’t liable for any losses you may incur as a result of falling victim to a scam, even if the criminal has used their site fraudulently. They simply provide a service for advertising holiday accommodation, and are under no obligation to carry out security checks to verify whether advertisers genuinely have holiday property available.

Having said that, in high profile incidences where many victims have fallen prey to the same scammer, a few holiday websites have been known to provide some compensation. But there’s no law in place which obliges them to do so. Be warned.  

Fake online adverts aren’t the only thing you should be on the lookout for. Fraudsters may also contact you directly by text message, phone or email. In fact, almost a quarter of people have been targeted in one of these ways. Never respond to unsolicited contact.

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It’s too cheap

With hundreds of holiday rental adverts plastered all over the internet, how can you separate bogus deals from genuine ones?

Perhaps the biggest giveaway of all is the price. Holiday rental scams usually offer huge discounts off the market price to tempt you in. So ask yourself this: Why would a private holiday property owner - or even a holiday company - be willing to accept so much less than the going rate? The answer is they probably wouldn’t, which should give you a big indication that something dodgy might be going on.

How can you protect yourself from the holiday rental scam?

First of all, you can limit the risk by booking your accommodation through a reputable holiday website which is ABTA or ATOL (Air Travel Organisers’ Licensing) affiliated, rather than going through a rental listing site.

If this isn’t possible, use a well-known website instead. But, don’t forget, even trusted sites have inadvertently allowed fraudsters to advertise non-existent properties.

Do your research

Established holiday rental websites, such as holiday-rentals.co.uk, holidaylettings.co.uk or ownersdirect.co.uk, should tell you how long a property has been advertised. The longer it has been on the site the better as this gives an indication of the owner’s experience. It may be a good idea to give properties which are newly advertised a miss.

Next look for reviews and testimonials for the property you want to rent. Although, these can be faked, a property owner with lots of positive feedback is less likely to be bogus.

These days it’s the norm to book accommodation without speaking directly to the owner or their agent. But it may put your mind at rest to do so. Get a contact telephone number - preferably a landline - and ask plenty of questions about the property and its location.

Ideally, you should also get contact details for the owner including their home address and phone number. They may not be prepared to divulge this information initially for their own security, but by the time you come to book, it should be willingly provided. If you’re not satisfied everything is above board you could even ask for a utility bill for the holiday home to prove ownership.

Next find out whether you’ll receive a booking contract. You should be sent one to sign to agree to the advertiser’s terms and conditions for the holiday rental before you book. Be wary if you’re told no paperwork will be provided.

Protect your payment

The way you pay for your holiday accommodation can provide different levels of protection. For example, while cheques and bank transfers are commonly asked for, they provide little recompense if things go wrong.

Insist on paying by credit card so you can take advantage of protection under Section 75 of the Consumer Credit Act. This legislation gives you the right to claim against your credit card company if there’s a problem with your purchase including fake holiday homes. For the rules to apply, the accommodation must cost at least £100, but you don’t need to pay the full price. As long as, the property rental costs £100+ in total, you could pay a smaller deposit using your card and still be entitled to your money back.

You may also think you can pay securely using a PayPal account (which means you don't need to reveal your bank details to the advertiser). But the trouble is because holidays are deemed as 'intangible', they aren't actually covered by PayPal Buyer Protection. Normally, this allows buyers a 45 day window in which to claim for compensation if there's a problem with their purchase.

That said, in 2009 a large scale scam advertising villas in Cyprus duped many British holidaymakers. 90% of them paid for their holiday using PayPal and, as a gesture of goodwill, the company refunded their money. However, this isn't Paypal's standard terms so you may not be so lucky.

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