Business

Thomas Cook refund website targeted by suspected fraudsters

The CAA suspects fraudsters are targeting a website created to refund Thomas Cook customers
The CAA suspects fraudsters are targeting a website created to refund Thomas Cook customers The CAA suspects fraudsters are targeting a website created to refund Thomas Cook customers

FRAUDSTERS are suspected of targeting a website created to refund Thomas Cook customers, the Civil Aviation Authority (CAA) has said.

The aviation regulator said it has taken "urgent action" over the suspicious online activity and will inform the police.

It has added further verification checks to its refund process and pledged to seek prosecutions where there is evidence of deception.

Some of the concern is understood to have risen from a series of low-level claims, which often indicates fraud.

Around 100,000 claims have been made since the website went live on Monday morning.

It was set up to enable people with Atol-protected bookings for Thomas Cook holidays due to begin after the firm collapsed on September 23 to obtain refunds.

This relates to more than 360,000 bookings covering trips set to be taken by 800,000 people.

Atol-protected customers who were already abroad when Thomas Cook failed can also claim for the cost of replacing the parts of their holiday which were financially protected, or out-of-pocket expenses for delayed flights.

The CAA is aiming to pay refunds within 60 days of receiving a valid form and wants to crack down on fraudulent activity to avoid any delay.

Dame Deirdre Hutton, who chairs the organisation, said: "This morning we have taken urgent action in response to what we believe is attempted fraudulent activity in relation to refunds for Thomas Cook customers.

"If you have made a claim directly with us, then your claim is being processed and you do not need to take any action."

She added: "Please help us to combat the risk of fraud by not submitting your details to any other website.

"Our focus is on getting money back to the right people as soon as possible and combating fraud in every way possible."

The CAA was forced to apologise on Monday after its system struggled to cope with "unprecedented demand" in the hours after it launched.

Many people received an error message after entering their details, meaning their claims were not submitted.

Meanwhile a leading travel industry figure has said Thomas Cook should not be branded "a dinosaur in a digital age”.

Mark Tanzer, chief executive of travel trade organisation Abta, insisted the firm was "clearly doing something right" by selling £9.5 billion worth of holidays last year and having a million people either abroad or with future bookings.

He described its collapse as "more a failure of corporate finance than a failure of travel".

Thomas Cook ceased trading on September 23 after failing to secure an extra £200 million needed to keep the business afloat.

In May, the 178-year-old firm reported a £1.2 billion net debt.

Traditional travel agents have been accused of being too slow to take advantage of the internet, claiming customers still wanted the face-to-face experience of walking into a shop to book their holidays.

Thomas Cook did reduce the number of stores it had, but by the end hundreds remained.

This enabled online-only rivals such as On The Beach to eat into its market share.

But in a speech at Abta's annual convention in Tokyo, Japan, Mr Tanzer said: "The depiction of (Thomas Cook) as a dinosaur in a digital age really masks the true problem.

"Thomas Cook's financial challenges were no secret, but the full extent of their indebtedness has only come to light recently.

"Thomas Cook paid £1.2 billion in finance charges over the past six years, plus goodness knows how much in advisory fees.

"Those were profits from its holiday business, money that, in a more balanced financial model, would have been available to invest and develop the business. We know now that this was definitely a case of financial exaggeration."

Mr Tanzer told the audience that the loss of Thomas Cook has caused "a lot of anger and fear" as the impact is being felt "very widely" by tour operators, travel agents, hotels and other suppliers.

He urged the industry to "work together at this moment" to maintain customer confidence, find new homes for displaced businesses, and recruit former Thomas Cook staff.

The chief executive also urged the Government to consult on the findings of a review which recommended a levy of up to 50p per ticket being added to air fares to create a fund to cover the cost of bringing UK passengers home when an airline goes bust.