NEWS SPECIAL REPORT
The threat of terrorism ‘is not going away’, travel firms are warned at a counterterror seminar. Report by Juliet Dennis
Cybercrime is
‘on the rise in the travel industry’
‘Don’t be blasé about the risk of terrorism and fraud’
Travel companies must not be complacent about the threats of terrorism and company fraud, insurance and legal experts have warned.
Businesses were urged to consider taking out terrorism insurance to deal with situations that may affect staff or customers. The advice came at an industry
counterterror seminar last week, run by Prevention of Fraud in Travel (Profit), attended by agents, operators and cruise lines. Alan Pattison, who runs the
travel risk professionals division of insurance broker Tasker & Partners, said: “It’s easy to be blasé about the risks but the threat is not going away; we have new threats from other areas.” He said companies with staff
or offices in locations deemed high-risk, such as in cities, near transport hubs, shopping centres or government buildings, should consider taking out terrorism insurance, either as a standalone policy or as an add-on. Travel businesses were also
warned about the threat of fraud by company employees, often
“As companies get bigger and more complicated, it’s easier for fraudsters to hide”
committed by a member of the finance team. Rhys Griffiths, head of travel at
law firm Fieldfisher, said: “Fraud is very common. We see it as a growth area: as companies get bigger and more complicated, it’s easier for fraudsters to hide. One good indicator is the behaviour of people: are they behaving irrationally or leading a lavish lifestyle that doesn’t correlate to their pay.”
Griffiths said the company must establish whether a fraud has been committed, how long it has been going on, if it is by a member of staff and whether commercial partners are affected. “Companies need to set up
an internal investigation team, usually with a senior executive taking the lead in decision- making and another involved on a practical basis,” he said. Businesses also need legal
advice and a forensic accountant to conduct a financial analysis. “If you are confident there is a
fraud, the question is whether to pursue the fraudster. The risk of adverse publicity may mitigate the cost of taking legal action,” he said.
Cybercrime is on the rise, warns insurer
Cases of cybercrime appear to be on the rise in the travel industry. Alan Pattison of Tasker & Partners said the insurance broker was
witnessing an increasing number of cybercrime cases among clients, which include travel agents, tour operators and cruise lines. He said: “Cybercrime is one of the biggest threats to organisations because they may not be aware of the ability to insure against it. This year I have seen more cyberattacks than I have seen actual thefts.” Pattison urged travel firms to inform staff of the dangers, install anti-virus software and update passwords for staff working remotely.
10
travelweekly.co.uk 2 June 2016
How to handle a crisis that hits a resort
Advice for head office
l Decide who will deal with the situation
l Find out what is happening l Count how many passengers are in resort or in transit, and how many are due to travel
l Maintain normal business l Keep a log of events l Appoint a senior employee to make key decisions and authorise expenditure
l Appoint staff or experts to deal with legal issues, IT, media and social media
l Contact customers: send a standard text message daily to clients due to travel
l Update your website with factual information and put appropriate messages on homepage. Take down inappropriate advertising
Advice for resort reps
l Find somewhere safe: locate any rest centre set up
l Seek help for casualties l Report back as soon as possible to your head office
l Don’t post commercially sensitive photos online
l Keep a written record of what is happening
l Preserve any evidence Advice provided by Profit
PICTURE: ISTOCK
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