What holiday accommodation scams look like

What holiday accommodation scams look like
Jennifer DukeDecember 7, 2020

Booking holiday accommodation online can be cheap and convenient, but Consumer Affairs Victoria believes it's much riskier than traditional methods - and this goes for both consumers and accommodation providers.

These are called "advance fee" fraudulent activity and as at March there had been 220 complaints and inquiries about these scams.

It's caveat emptor, or rather renter beware, all round - being the responsibility of the person booking to ensure the individual or business is legitimate.

Some of the recent accommodation scams look like the following:

Intercepted emails from prospective renters to genuine overseas providers. The hackers then have email exchanges with the consumers, get them to pay and upon arriving the consumer then realises they have been duped with the provider unaware of their booking.

Fake accommodation details on booking websites posted by scammers. Consumers pay - often by direct transfer to the scammers' account - and then find the accommodation does not exist upon arrival.

Cheap flight and accommodation vouchers than end up difficult to redeem, subject to extensive terms and conditions, often only redeemed by purchasing expensive holidays.

Investors can help their prospective renters protect themselves from online scam artists, and there is much consumers can do also.

CONSUMERS

  1. Never agree immediately to unsolicited offers or deals.

  2. Search for the provider online, compare feedback from a number of review sites and consider a range of options.

  3. Be wary of pixelated photos, poor use of English and grammar, or limited payment acceptance such as solely direct debit or overseas payment facilities.

  4. Upon making an enquiry, keep a hold of the contract, accommodation details, exact web and email address. Do not trust anyone with a response from an address that is even slightly different.

  5. Always speak to the provider before paying, and be cautious of excuses for not speaking with you.

  6. Never provide credit card details to someone you do not trust or know.

  7. Transfer funds through secure facilities, such as PayPal.

  8. If in doubt, consider using a travel agent or reputable hotel chain.

INVESTORS

  1. Do not send unsolicited deals.

  2. Have a professional website, with full contact details provided and fees explained upfront. If there will be any other person contacting the client, be sure to explain this.

  3. Ensure you email with correct grammar, and that your website is copy edited. Consider an official signature for your email and those of your staff.

  4. Use many, decent photographs and include as much information as possible about the accommodation.

  5. Provide your background if possible.

  6. Provide testimonials, and encourage previous visitors to leave feedback and reviews.

  7. Offer PayPal and similar facilities for payment.

  8. Try to get in touch with your upcoming visitors.

  9. Provide the appropriate company numbers, and even include links to authority listings where necessary.

  10. Look for accreditation online, or consider joining some sort of association.

If you have been scammed by overseas accommodation, you do have options. You should speak to your bank, who may be able to assist if you have paid through a secure transfer from your credit card, and report them to Consumer Affairs Victoria or ScamWatch. You should also report large amounts of lost or stolen money to the police as fraud.

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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