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Warning over COVID-19 flight cancellation claims management scams

Holidaymakers are being warned about a rise in flight cancellation compensation scams following the COVID-19 crisis.

Claims management firms that once targeted PPI (Payment Protection Insurance) mis-selling have turned their sights on flight delays and cancellations.

They purport to offer a “no win, no fee” services online allowing airline customers the chance to check whether they are due compensation under EU denied boarding rules.

However, people who input their details into an online form but opt not to use the service or not receiving a pay out find themselves bombarded by claims for payments despite.

Other tactics include not handing on the compensation to the customer or charging a fee for a service that is free.

There are concerns that terms and conditions of these claims management companies are very opaque.

Nick Downing, chief intelligence officer for the fraud prevention service Cifas, told The Guardian:

“Fraudsters have been quick to take advantage of the fact that so many people have had to cancel or postpone their holidays as a result of the pandemic.

“Over the last couple of months we’ve seen a sharp rise in holidaymakers being contacted by criminals purporting to be from travel companies, tour operators and insurers offering to refund or rebook cancelled holidays, as well as setting up fake websites offering refunds and compensation to holidaymakers.”

The Guardian reports that the directors of one firm, Flight Delay Claims Team, are due to stand trial in January after a three-year investigation by Northamptonshire trading standards.

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