Agents must be aware of fraud by contractors

Lawyer: fraudulent contractors are increasing problem for agencies

A lawyer representing companies in the travel industry says that the biggest liability problem facing travel agents is independent contractors conducting credit-card fraud against them. This happens when contractors make unauthorised charges or cite credit cards that are no longer in use. This can happen easily because GDSs give authorisation codes for any credit card number with an expiry date matching the one they have in their records. Agents should check the reputations of all individuals they work with; check that other agencies given as references actually exist and are in business. Agencies should also take care classifying independent contractors as exactly that and not as actual employees.
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