Preventing fraud: insights from real cases in Ontario’s travel industry
At the Travel Marketplace conference in June, TICO’s Registrar Dorian Werda delivered two seminars that highlighted different types of fraud, how to recognize red flags, and how to adopt best practices.
This article provides an overview of Dorian’s presentation, with insights to help travel professionals stay vigilant as fraud becomes increasingly sophisticated.
Occupational fraud
Occupational fraud is a type of fraud that is committed by someone internal to the business. TICO has seen instances where a travel advisor may bounce from agency to agency, committing fraud that severely impacts the business, sometimes unbeknownst to the travel agency manager or owner.
This can include:
- Directing consumers to pay cash or e-transfer money to a personal account
- Credit card misuse – using one consumer’s credit card to cover an unrelated booking
- Unconfirmed itineraries (quotes) provided to consumers as confirmed bookings/documents
- Travel not being booked, or only booked one-way instead of roundtrip, with passengers stranded in destination
- Travel advisor no longer employed by the agency, but still has access to the GDS
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Agency owner responsibility
Agency owners are responsible for the actions of all travel advisors, including employees and/or contractors who are acting as outside sales representatives, within their agency.
As TICO does not register individual travel advisors, these situations are an employer-employee matter. However, TICO will review the circumstances to see if it has jurisdiction to take action or to refer the matter to local law enforcement.
Occupational fraud prevention tips
Before you hire an advisor
- Consider credit or CPIC checks (e.g., www.MyBackCheck.com)
- Check enforcement section of TICO’s website
- Do a Google search of the candidate’s name
- Ask for copy of TICO Certification certificate
- Review employment agreement and/or contract with new hires
- Review policies and procedures with new hires
- Consider annual review and acknowledgment of policies and procedures (signed/dated by staff)
Have termination procedures
- Cut off access to GDS
- Notify suppliers
- Notify TICO
- Be aware of status and access to advisors’ bookings
Other types of fraud
Website and social media spoofing
- Beware of spoofed listings for unrelated websites pretending to be your business
- Regularly search your business name on:
o Various search engines
o Social media sites
- View recent media coverage about travel agency spoofing
System and email hacking
- Consider the security you have in place on your computer systems and email, as well as staff training to recognize phishing and other forms of hacking attempts.
- If a travel agency or travel advisor email or system is hacked, hackers may send:
o Emails to active clients asking for e-transfers or wire payments
o Malicious links/software to clients or other contacts that look legitimate to further perpetuate fraud
Fake listings
- There have been numerous reports of fake listings on short-term accommodation rental websites
- It’s important for both advisors and consumers to beware the risks when bookings a short-term accommodation rental and work with reputable companies. In Ontario, short-term accommodation rental agencies must be registered with either TICO or the Real Estate Council of Ontario (RECO), the real estate regulator.
- View recent media coverage about fake listings.
For additional information
The Canadian Anti-Fraud Centre (CAFC) is a national service that gathers intelligence on fraud across Canada and assists police with enforcement and prevention efforts. They help individuals and businesses:
- Report fraud
- Learn about different types of fraud
- Recognize the warning signs of fraud
- Protect themselves from fraud
For more fraud protection resources, please visit the CAFC website.
If your business is the victim or fraud, please contact TICO and your local law enforcement agency.