Ticketing fraud is a growing threat for consumers, and for any business that includes events and experiences as part of travel and tour packages.
In this post we will explore what ticketing fraud is and explain why it is a problem for tour operators. We will also discuss some best practice guidelines that will help you protect your business and your customers against the risks of ticketing fraud.
For more information about your risk management obligations as a travel agent or tour operator, be sure to visit our dedicated travel insurance hub.
What is Ticketing Fraud?
Essentially, ticketing fraud is the practice of selling fake tickets for events or experiences. Fraudsters tend to target consumers with offers for tickets to major events, such as football games, festivals, or concerts.
Often, fraudsters will intentionally target events for which there was a high demand for tickets, but which have already sold out. People might be willing to pay any amount for tickets to such events. Yet with ticketing fraud, the tickets they buy may not actually exist.
How Much Does Ticketing Fraud Cost Consumers?
Action Fraud reports that ticket fraudsters rob their victims of up to £4 million a year.
Does Ticketing Fraud Affect Tour Operators?
Though ticket fraudsters are most likely to target individuals, tour operators may also fall victim to their scams. You may want to offer a travel package to an overseas concert or football game, for example. And in doing so, you will have to buy a ticket for the event in question. Or, you may book tickets for flights or other transport on your customers’ behalf.
What if the ticket you buy, which you will then offer to your customers, does not actually exist?
Why is Ticketing Fraud a Problem for Tour Operators?
Imagine offering your customers an unmissable experience as part of a travel or tour package. The customer shows up on the day of the experience, only to be told that their ticket is fake. It is not valid, and it never was.
Or worse, imagine if you sell a customer a ticket for a flight, or a different kind of travel connection, only for them to find that this ticket does not actually exist. This customer could then be stranded in a foreign country, miles away from anywhere.
Understandably, this customer will not be happy. But who do you think they will blame for the situation? The unscrupulous fraudster who sold the fake ticket to you? Or you, the apparently trustworthy tour operator who offered the fake ticket as part of a package?
Customers use tour operators because they take all of the stress and hassle out of making travel arrangements. They need to be able to trust that they are getting the best possible service from you. If anything serves to break this trust, it could be devastating for your reputation. Also, the customer may choose to take legal action against you, which could prove a lot more costly than a refund.
How Tour Operators Can Protect Against Ticketing Fraud
Various consumer rights resources offer numerous tips for staying resilient against the threat of ticketing fraud. While these guides are generally written for individual consumers, the general principles for avoiding ticketing fraud scams are the same for travel agents and tour operators:
- Only ever use official channels to buy tickets. Ideally, you should work directly with venues, transport companies, and official tour promoters. This is the best way you can be sure that the tickets you buy, and which you will later offer to your customers, are genuine.
- Look out for fake websites and emails. Be wary of spelling and grammatical errors in emails and on websites, and check website URLs for subtle signs that they might not be the site they claim to be – such as slight misspellings of brand names.
- Make sure you are actually buying a ticket, rather than a promise of a ticket. This could be a physical ticket, with various watermarks and other signs to indicate that it is genuine. Or it could be a digital ticket with a QR code you can scan to check its authenticity. You should not expect your customers to collect their tickets from “representatives” outside venues.
- Remember, if something appears too good to be true, then it probably is. Be wary of any individual or company claiming to have tickets for popular events that have already sold out. Also, be wary of anyone who appears to be offering a low price for an event, or a journey, that you know to cost significantly more. This may not be a bargain; it may literally be a steal.
Is Your Travel or Tourism Business Covered For Ticketing Scams?
Typically, Professional Indemnity cover specifically excludes claims arising from fraud. However, there are dedicated commercial crime policies that provide protection against forgery of tickets and fraud.
At James Hallam, we have provided specialist insurance for tour operators and travel agents for over 20 years. We have a thorough understanding of the unique risks businesses face in the fast-moving travel industry.
We will take the time to understand your business so we can tailor the best possible travel and tour insurance programme for you and your customers. We can also advise on other insurance policies you may need to get truly comprehensive cover at the best price.
Find out more about our specialist travel industry insurance services.