5 2


Trade welcomes fake claims cap


Ben Ireland ben.ireland@travelweekly.co.uk


Travel firms have welcomed the government’s decision to bring holiday sickness payouts under control, but say there is still “work to be done”.


New rules that will fix the legal costs that can be claimed in holiday sickness cases were given the go-ahead by the Ministry of Justice last week and will come into force ahead of the peak summer season. The action is the first major step


by the government in addressing the “claims epidemic” and was a key demand of Travel Weekly’s Fight Fake Claims campaign. Up until now, legal fees


were unlimited, emboldening claims companies to encourage holidaymakers to pursue sickness compensation, often forcing tour operators to settle out of court. In 2016, about 35,000 claims


were made, 500% more than in 2013, according to Abta. The new rules mean operators


will pay fixed costs depending on the value of the claim and length of proceedings. This will make defence costs predictable and help travel firms challenge bogus claims.


Legal fees for claims will now be capped


Steve Heapy, chief executive of Jet2.com and Jet2holidays, said: “We welcome news that the Ministry of Justice has taken decisive action to close the legal loophole. “We urge the government to


follow up by banning cold calling in relation to sickness claims, as we know that some unscrupulous claims companies are attempting to mislead customers through this dishonest activity.” Andrew Flintham, managing


director of Tui UK & Ireland, said: “We’ve seen a dramatic rise in fraudulent and exaggerated claims, which without continued intervention, represents a real threat to the industry and honest holidaymakers. “This is a great step in the right


direction; however, it’s not the end of the story. There’s still more work to be done with help from government and the industry.” Abta chief executive Mark


Tanzer said: “We encourage the government to keep this matter under review and pursue a ban on cold calling by claims firms.” Since October 2017, four


couples have been sentenced or ordered to pay costs after making false claims against Thomas Cook, Tui and Red Sea Holidays.


Industry ‘at risk’ of Russian attack


Juliet Dennis juliet.dennis@travelweekly.co.uk


Travel firms, airports and airlines are among those at risk of a cyberattack by Russian hackers, a fraud expert has warned.


The UK’s National Cyber Security Centre and the US’s Federal Bureau of Investigation and Department for Homeland Security issued a joint statement on Monday about “malicious cyber activity planned by the Russian government”. The UK government said private


sector corporations, critical infrastructure providers and small and home-based businesses could be targeted. Travel industry fraud group


Profit (Prevention of Fraud in the Travel Industry) said it was vital the trade took note of the warning, which comes in the wake of UK-supported air strikes in Syria. Profit chairman Barry Gooch


said: “Travel businesses should not ignore this warning. It only takes one big attack to damage the reputation of the travel industry.” He said cyberattacks could


entail the theft of company money or customer data. “The travel companies with the


biggest vulnerability would be those with offices abroad where there might be different security or protocols,” he said. “Potentially, if criminals wanted


to target a business that would grab publicity, then airports, airlines or any major travel company could be at risk.” Intelligence gathered by the US


and UK suggested that millions of machines directing data around the internet were being targeted. Gooch said unusual activity should be reported to Action Fraud. The government runs a


Cyber Essentials scheme to help businesses protect themselves from common online threats. This requires suppliers to be certified to be allowed to bid for contracts involving the handling of certain sensitive and personal information. For more information go to:


cyberessentials.ncsc.gov.uk; actionfraud.police.uk/ report_fraud


To contact Profit, email:


contactus@profit.uk.com › Delta cyberattack, page 63


19 April 2018 travelweekly.co.uk 5 3 STORIES HOT


CLAIMS FIGHT


PICTURES: SHUTTERSTOCK


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