TICO Takes Aim At Fraud

It’s widely agreed that travel fraud tarnishes the entire industry. But what isn’t commonly known is that most consumer fraud – which agencies can be on the hook for – is perpetrated by travel agents gone bad. And it can be prevented, reports managing editor Michael Baginski in this week’s digital edition of Canadian Travel Press.

The Travel Industry Council of Ontario (TICO) says it has seen a dramatic increase in fraud, and not just anonymous late night phone calls awarding “free” trips, etc. – the kind of fraud that makes the nightly news.

Instead, the provincial regulator is eye-deep in incidents of fraud against retailers, wholesalers and consumers “that’s occurring a little too frequently for our liking,” according to TICO VP Operations, Dorian Werda. “We’re seeing it by travel agents working in registered travel agencies either in the bricks and mortar agencies or outside. It’s really been both cases.”

And she adds, “The majority of [perpetrators] wrote their examine and knew what the law was… They knew what their responsibilities were. A lot or them were prior supervisors on record…”

By far the largest infraction is individuals operating without being registered. The number of “unregistereds” has nearly doubled since 2014 “with many more to come,” says Ontario registrar and TICO CEO Richard Smart.

And in the current fiscal year, incidents of fraud have resulted in more than $900,000 in fines and restitution and 1,520 days of jail time for individuals, plus plenty more probation.

Much of the damage could have been prevented, says TICO, with Werda noting that fraud is being committed in and under the very noses of travel agencies, which are ultimately responsible.

For the full story, check out this week’s digital edition of Canadian Travel Press by clicking here.