Holiday Compensation Scam UK: Fake Claims Handlers
If someone contacts you out of the blue about holiday compensation you never claimed, it's almost certainly a scam.
What a fake claims-handler contact looks like
This scam targets people who are, or might be, genuinely owed compensation — for a delayed or cancelled flight, a package holiday that fell short, or another travel disruption. A firm claiming to be a claims management company (CMC) cold-calls or emails offering to "recover" money on your behalf. An example of the style is: Our records show you may be owed up to £520 in flight delay compensation. No win, no fee — just confirm your booking reference and card details to proceed.
Genuine claims-management activity is not illegal, but regulated claims-management activity in Great Britain needs FCA permission. An unsolicited caller with no verifiable authorisation is therefore a real risk, not just an expensive middleman.
Why these offers are convincing
The compensation itself can be real — UK passenger-rights rules can entitle passengers to a fixed payment for a sufficiently delayed or cancelled flight, with long-haul delay compensation reaching £520 in eligible cases. That makes an unsolicited offer to help claim it sound plausible rather than suspicious. Cold-calling on the back of a genuine entitlement lowers people's guard.
A firm pushing to skip any checks and get your booking reference, card, or ID details quickly, rather than explaining its FCA authorisation, is the key tell — a genuine, regulated CMC should have no reason to hide its status.
Signs a claims-management contact is a scam
- You're cold-called or emailed out of the blue, rather than approaching a firm yourself.
- The firm can't or won't confirm its FCA authorisation when asked.
- You're pressured to act immediately or asked for card or full ID details before any claim work has started.
- Upfront fees, unclear fee terms, or pressure to pay before verification are part of the pitch.
- The firm's only contact details are a mobile number or a generic email address, with no verifiable company registration.
- You're asked for far more personal or financial information than a compensation claim would actually need.
How the scam works step by step
First, an unsolicited call or email claims you're owed compensation, often for something genuinely plausible like a delayed flight. Second, the firm pushes to skip checks and collect your booking reference, ID, and payment details quickly. Third, either an unauthorised firm takes a large, undisclosed cut of any genuine payout, or — in the worst cases — no claim is ever pursued and the details collected are used for fraud or identity theft.
Checking the firm's FCA authorisation before sharing anything breaks the chain.
How to check a claims-management contact safely
Do not share your booking reference, ID, or payment details on an unsolicited call or email.
- Check the firm on the Financial Services Register at
register.fca.org.uk, or use the FCA's own Firm Checker tool, before engaging further. - Remember you can claim flight delay or cancellation compensation yourself, directly with the airline, at no cost.
- If the airline doesn't resolve it, you may be able to use a CAA-approved Alternative Dispute Resolution provider such as AviationADR or CEDR if the airline is signed up to one; if not, the CAA's Passenger Advice and Complaints Team may be able to help.
- A firm that can't clearly state its FCA authorisation, or pressures you to skip checking it, should not be given any details.
If you've already paid a fee or shared details
If you paid an upfront fee to an unauthorised firm, contact your card provider about a chargeback, and for card payments between £100 and £30,000, ask about a Section 75 claim. Stop all further contact with the firm and do not send any additional payment, even if told the first one "didn't go through" or more is needed to release funds.
If you shared ID documents or financial details, monitor your accounts and credit file for signs of misuse.
How to report a holiday compensation scam (UK)
Report an unauthorised or suspicious claims firm to the FCA on 0800 111 6768. If you lost money or shared sensitive information, report it to Report Fraud at reportfraud.police.uk or 0300 123 2040 if you are in England, Wales, or Northern Ireland. In Scotland, report to Police Scotland on 101.
If the contact arrived by text, forward it to 7726; if by email, forward it to report@phishing.gov.uk.
Frequently asked questions
Are claims management companies illegal in the UK?
No — legitimate CMCs exist and can be a genuine option. But firms carrying on regulated claims-management activity in Great Britain need FCA permission, so check a firm on the FCA's Financial Services Register before sharing any details.
Do I need a claims company to get flight delay compensation?
No. You can claim directly with the airline yourself at no cost. If the airline doesn't resolve it, you may be able to escalate to a CAA-approved ADR provider if the airline is a member, or to the CAA's Passenger Advice and Complaints Team if it is not.
How much can a claims company take from my compensation?
Fees vary, but claims companies can take a significant proportion of any payout as their fee. Claiming directly with the airline, or using free ADR where available, means you keep the full amount.
How do I check if a claims-management firm is genuine?
Search for the firm on the FCA's Financial Services Register at register.fca.org.uk, or use the FCA's Firm Checker tool. If it doesn't appear, or the register shows a warning, don't share any details.
I've already paid an upfront fee to a firm I now think is a scam — what should I do?
Stop all contact and don't send further payment. Contact your card provider about a chargeback or, for card payments between £100 and £30,000, a Section 75 claim, and report the firm to the FCA on 0800 111 6768.