The suspects, according to eyewitnesses, had dressed themselves as employees of the Anastasia Beach Complex.
After allegedly spending a week filming the children and swimming with them in the pool, the gang made their move.
They were intercepted as they attempted to lure three youngsters into cars.
“Some of them were wearing staff outfits so they could blend in more easily"
Speaking with The Daily Record's James Moncur, father-of-two Greg Letford said: “This Romanian couple were leading the two young children towards a waiting car, another person had a third child up against a wall ready to go, too.
“Someone spotted what they were up to and stopped them.
“One of the men got away and we heard the getaway car crashed a short distance away too.”
He added: “Some of them were wearing staff outfits so they could blend in more easily.
“It was really scary.”
The alleged abductors were taken to the hotel office and handed over to the police, but it remains unclear as to whether or not any arrests have been made.
Thomas Cook have now, as a precaution, moved around 60 families into another hotel.
A spokeswoman for the company told MailOnline: “The safety and welfare of our customers is always our first priority and upon hearing about the incident, we immediately deployed our experienced resort team to the property to provide those customers in residence with individual support.
“Customers who did not wish to stay at the property were immediately moved to alternative hotels of a similar or higher standard.
“While incidents of this nature are extremely rare, we would like to reassure all customers that this is being taken incredibly seriously and we are continuing to work closely with the local authorities and the hotel as the investigation continues.
“Any customers with concerns about future holidays at this hotel are asked to contact us directly so that we can deal with them personally and directly.”