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1. "A lot of people making fraudulent claims on their travel insurance are first time fraudsters, and don't realise how serious it is to make a false claim," says Simon Cook, Head of Special Investigations at claims management and assistance company, CEGA. 2. "Making a false travel insurance claim can result in a criminal record, which would make it very difficult, for instance, to take out any sort of insurance policy in the future - and that includes car and household insurance," says Simon Cook. "In a worst case scenario, it could lead to a prison sentence." 3. Top of the list of fraudulent travel insurance claims? "It's common for someone who has suffered a genuine loss to add a few noughts to the value of that loss - a Sekonda watch might become a Rolex for instance," says Malcolm Tarling of the Association of British Insurers. "Exaggerated losses, false claims for lost baggage and fictitious medical treatment are among the most common fraudulent claims," adds Simon Cook. 4. "If a false travel insurance claim is submitted but withdrawn after having second thoughts, it can still lead to a prosecution for fraud," says Simon Cook. 5. "Insurers will check every detail of a dubious claim; from the authenticity of a doctor's bill handed out on the other side of the world, to the validity of a witness statement in a foreign language," says Simon Cook. "Cognitive interviewing techniques, investigation by overseas agents and medical assessments may all be used to assess the honesty of a suspicious claim." 6. "Fraudulent travel insurance claims put up the cost of everyone's insurance premiums," says Simon Cook. "In other words, innocent travellers foot the bill for fraudulent claims." Read full article

The end of school marks the start of the summer travel season. With the cost of travel rising, consumers are susceptible to vacation travel fraud. The Better Business Bureau is warning vacationers to beware of travel clubs. Complaints to the BBB show that many travel clubs promise huge discounts on hotels, airfare and cruises, but fail to deliver these discounts to members despite the high cost of joining. "Consumers are looking for vacation bargains," said BBB President Tom Bartholomy. "Unfortunately, they are being seduced by slick presentations from high-pressure sales people who promise great deals that do not exist."