What must travel agencies do when they detect unusual or fraudulent activity?

When travel agencies detect unusual or fraudulent activity, the most critical action is to report it to TICO (Travel Industry Council of Ontario) as soon as possible. This step is essential because TICO oversees the regulation and enforcement of the travel industry in Ontario, ensuring that consumer protection measures are adhered to. By reporting suspicious activities promptly, agencies contribute to the broader efforts of safeguarding consumers and maintaining the integrity of the travel industry.

The requirement to inform TICO also allows the organization to investigate potential fraud comprehensively and prevent further malicious activities. Reporting helps in the identification of trends or patterns in fraudulent behavior, enabling TICO to take appropriate action, such as alerting other agencies or the public.

While conducting an internal investigation, documenting for future reference, and notifying local financial institutions may also be prudent steps in addressing fraud, they do not replace the urgency of immediately notifying TICO. Each of these measures supports the agency's internal processes and communication but acts as secondary actions following the critical need to inform the regulatory body.