Holiday scams that can drain your bank account - what to be aware of

Holiday scams that can drain your bank account - what to be aware of Watch out for these scams if you're planning a summer break - but don't worry, there are ways to protect yourself from things going wrong Travel is good for the soul and millions of us are due to head on holiday in the coming weeks and months. But there are so many things to watch out for. From scam sites to passport rules and using debit cards abroad, there's plenty to remember. We've compiled a helpful guide below of things to watch out for. Scam sites Every year, people renting apartments through private lets get caught out by a common scam that’s simple to run but has devastating consequences. However, by checking your booking in advance, you could avoid being left on the streets on arrival at your destination. Fraudsters usually advertise a fantastic-looking property on a legitimate booking website, often using fake reviews and enticing pictures. These holiday lets may actually exist, but aren’t owned by the scammer – though on occasion they turn out to be privately owned homes. If you make an enquiry or try to reserve, the scammer will offer you a discount if you transfer money from your bank account direct (pay by bank) rather than going through the host website. They will say that ‘they’ll pass the cost savings from the website on to you’ for doing so. Alternatively they may suggest a legitimate payment method like PayPal but will ask you to use the cheaper ‘friends and family’ option. When you transfer money from your bank account, or use the friends and family option on PayPal, the money is exceptionally hard to recall. So when you’ve sent it, it’s gone. And if it’s a scam, then you won’t see it again. Beat the scammers by only paying through the official holiday company website and only by debit or credit card. Check the T&Cs to find out your rights if there’s a problem with the booking. Shop a fraudster to the booking site and ask them to get back your cash or find you an alternative booking. Watch out for ‘official’ messages too. The Booking.com website seems to have had a spate of fake messages from the firm’s own website and app. This appears to have happened after hotel emails got hacked and used to manipulate the system. Never trust a message that asks you to pay by a different way to what you agreed. You can also pay by credit card to get an extra layer of protection if the bill is over £100 or you’re paying a deposit. Car hire cons The car hire industry has one of the worst reputations when it comes to mis-selling, rip-off costs and terrible service. Just because you’ve used a brand in the UK doesn’t mean the same brand will be any good abroad. Car hire companies know you’re often likely to be tired and grumpy when you arrive at your holiday destination and just want to get on your way. This means they’re likely to ‘upsell’ things you don’t want or need or rush you through the process without spelling out key contract terms. However, having an insurance policy to cover ‘excess fees’ is essential. Car hire contracts have large excess charges on the policy, which can mean you could be charged £1,000 or more for minor damage to a vehicle. These policies cover that excess charge. But the ones sold at the car hire desk can be expensive, whereas you can pick up a good policy in the UK for around £30. I’ve heard loads of reports that car hire firms are claiming you have to buy their own brand policies. This is not true. In the UK, businesses are banned from limiting you to their own insurance and most European rules are similar. Tell them in writing you are taking out your own insurance when you book. Sneakily, some firms change the make and model of the car when you arrive. My friends were recently given a manual drive vehicle in France despite specifically requesting an automatic. That’s dangerous, so stand your ground if a firm tries to switch vehicles. If there’s no choice, call your insurer to make the changes to the policy. Oh and it’s vital to photo or video the car from every angle before driving off, to avoid pricy problems later. One last thing. Brexit means there are a few new rules around driving in the EU. Make sure you’ve read the Government guidance in full before traveling. Don’t get caught out by the passport rules Speaking of Brexit, thousands of people are still being refused boarding at UK airports due to not realising the rules around passports have changed subtly (but significantly). If your EU passport is approaching the last year or so of its life, then it’s time to think about applying for your new, blue, British passport. When we were in the EU, if you still had some time left on your existing passport it was tagged on to the new one. So if you had six months to go when you renewed, then your passport would show 10 years and six months on the expiry date. In a post-Brexit world, you’ll simply get a standard passport with 10 years to run. However, the post-Brexit rules apply to your existing passport. If you are travelling to the EU/Schengen area, your entry in to the country is based on your passport’s issue date, not it’s expiry date . So if you are traveling on 01 March 2026 and your passport expiry date is 01 April 2016 you might think you are okay. But if your passport issue date is 01 February 2016, then you’ll be turned away because your passport is over ten years old. Not only that, the passport issue date must also have least three months extra to run on it from the date you leave the EU. So if you leave Spain on 31 March 2026, your passport must have an issue date after 01 July 2016. Got all of that?! It’s dead complicated so in summary: - Check your passport issue date. - If you’re traveling and your holiday falls over ten years after the issue date, your passport will not be accepted. - You need to have an extra three months before that ten years is up from the point you leave the country too. These rules apply to the EU/Schengen area only. Other countries have a six-month period of validity on your passport, though not many of the main non-EU destinations which often allow you to travel right up to the expiry date. If in doubt check the Foreign Office website – and don’t forget you might need a visa for some countries too. Oh… and you’ll have heard about the new European Entry/Exit System. Be prepared for long queues entering and exiting your Euro destination – and don’t forget that last passport check on the way out. Paying for things without paying a hefty price Be exceptionally wary of using your debit card to buy things or withdraw cash when abroad. On average, a family of four could end up forking out £250 to £300 in poor exchange rates and fees alone by doing this. Many high street banks charge excessive fees for every transaction you make (always pay in the local currency btw if you are using plastic cards, it’s almost always cheaper). Some of the challenger banks have much better currency conversion deals, but check before you travel. There are so many things to be aware of when spending abroad, so here are my top tips. - Never buy cash at the airport. The rates are usually astoundingly bad. The same goes for converting your currency back to pounds too. - Never withdraw cash on your credit card. Not only are the rates rubbish, but you may find this can affect your credit score as this is a big no no to lenders. - I’d save the emergency contact numbers for your bank, credit card and travel insurance providers on your phone, just in case. - Have a few different wallets, purses and secured spaces and split currency and your plastic cards between them. If you get robbed or lose one you won’t lose all access to all your sources of money. - Never leave cash or your valuables in your suitcase unattended – and that includes at the hotel while waiting to check in or after you’ve checked out. I’ve seen many an insurance claims rejected on this basis. - Most places in Europe and the main tourist destinations accept cards these days, so no need to wander round with a big wodge of cash. Check online first, by maybe have a card/cash proportion of 70/30 for your spending. Martyn James is a leading consumer rights campaigner, TV and radio broadcaster and journalist