The Guardia Civil have arrested five people in Lanzarote and identified six others as part of an ongoing investigation into an alleged fraud targeting a holiday villa rental business on the island.

The case came to light during the first quarter of 2026, after a tourism company reported being the victim of an elaborate scam involving fake holiday bookings.

Investigators are treating the case as suspected fraud, document forgery, identity theft and involvement in an organised criminal group.

Fake travel agent offered luxury villa bookings

According to the Guardia Civil report, the scam began in 2025 when a man claiming to be a tourism intermediary approached the Lanzarote-based company, offering to find customers looking to rent holiday villas on the island in return for commission.

After reaching a commercial agreement, the suspect supplied a list of supposed clients, along with copies of identity documents and bank card details to pay for the villa bookings immediately.

The payments initially appeared to be successful, prompting the intermediary to request his agreed commission of almost €20,000.

Believing the bookings had been paid for, the company transferred the commission to several bank accounts provided by the suspect.

Stolen bank cards uncovered

Shortly afterwards, the reservation payments were systematically cancelled by the issuing banks after it emerged that the bank cards used had been stolen in other EU countries.

The tourism company was left without the booking payments after already paying the commission.

Guardia Civil traces suspected network

Lanzarote's specialist cybercrime unit launched an investigation, gathering evidence and analysing financial transactions linked to the fraud, identifying 11 people who allegedly provided personal documentation or allowed their bank accounts to be used to help facilitate the scam.

The investigation also led officers to identify the alleged leader of the criminal network, who is suspected of withdrawing the proceeds using third-party bank accounts at cash machines across the Madrid region in an apparent attempt to avoid detection.

The Guardia Civil have not released the identities of those under investigation, as the operation remains ongoing and has not ruled out further arrests as enquiries continue.