Time to read : 5 Minutes
Picture this... you’ve been saving hard for the holiday of a lifetime. You’ve meticulously planned out every detail… you’re already mentally sipping from a coconut at the beach, or slurping down pasta in a trattoria. But, among the excitement of the holiday, something happens and your dream vacation turns into a nightmare.
Sadly, holiday scams are more common than many people realise, and being the victim of a scam when you’re overseas adds an extra level of stress. But it can be equally stressful if you're scammed before you step foot out of the country and you lose your holiday spending money.
The consumer watchdog found an increase in the number of Aussies mentioning a scam impersonating Booking.com that looked very legitimate.
The ACCC received 363 reports in 2023, which resulted in Aussies losing more than $337,000.
This was a 600% increase from 2022.
Holidaymakers using accommodation booking sites should independently verify any emails or messages received which include a link or ask for personal or banking information.
So whether you’re looking to explore the bustling markets in Thailand or wandering the Champs-Élysées in Paris… or are yet to depart, there are ways to protect yourself. Here’s what you need to know.
Before you leave: how to plan for a safe trip
A couple of simple precautions can put you in a good position to be able to enjoy a safe trip, or recover quickly if you are the victim of a scam.
Research common scams at your destination
Every destination has its own set of well-known tourist traps. Understanding the common scams doing the rounds in your destination can help you stay on guard.
You can research by:
looking at forums
reading travel blogs
joining social media groups for expats and travellers to the area.
Having this information up your sleeve will help you to know what to avoid.
Take out travel insurance with fraud coverage
Ensure your travel insurance covers not only accidents and health issues but also fraud and theft. Many travellers overlook this thinking it’s not required. Some policies offer reimbursements for money lost through scams, which can be a financial lifesaver if things go wrong.
Set up bank alerts and limit daily withdrawals
Before you leave, activate transaction alerts on your banking app. This will notify you quickly of any suspicious activity. Also, consider setting a daily withdrawal limit to reduce the damage in case your card gets stolen or compromised. You should also notify your financial provider that you are going overseas.
Get a travel money card
Travel money cards which allow you to control how much money you have loaded on them give you ultimate control. If your card is lost or accessed by a scammer, you can lock it quickly and easily, and still have access to your other accounts.
Some money cards allow you to transfer money into the currency of the country you’re visiting. This allows you to keep an eye on rates so you can try and get more for your dollar. It's also convenient if you’re travelling to multiple destinations that use different currencies, as one card does it all.
Make copies of important documents
Losing your passport can have serious implications if you’re overseas. Make copies of all your important documents, both physical and digital, so you can quickly access your information if something goes wrong.
Tip: remember to keep this somewhere safe once you travel.
Trouble in paradise: how to stay alert when you’re abroad
Now that you’re on your holiday, there are some easy things to watch out for to keep yourself, and your money, safe.
Be cautious when using ATMs and money exchanges
Use only ATMs in well-lit areas like inside banks or shopping malls, and always cover the keypad when entering your PIN. You can check reviews of ATMs and money exchanges online before you visit them.
When using a money exchange, if a rate appears considerably better than others, it’s probably too good to be true. Always count your money at the counter in front of the money exchange agent before leaving.
There is a scam in Bali whereby the notes are dropped onto the lap of the agent when counting them out, in other words, short-changing. If they make a fuss about you counting the money, you can change your mind and walk away.
Don’t accept anything from strangers
A scam you often see is one where market stall or shop owners will put something on you, such as a bracelet or scarf, before demanding payment for it.
The other version of this is ‘finding’ something, such as a ring, you’ve ‘dropped’ and trying to sell it back to you. These scams rely on the awkwardness of the situation and the language barrier, so be cautious if you’re approached in busy areas and stay firm if someone tries to interact with you.
Use trusted local knowledge
Taxi scams are very common in places like Bali and Thailand. In these scams the driver insists on charging you a flat fee rather than using the meter, knowing full well the flat fee will cost more. Sometimes, they will pretend they forgot to put the meter on, forcing you to pay an inflated flat fee.
The staff in your accommodation know this happens, and they’ll be able to help you find alternate travel options that won’t leave you out-of-pocket.
Take photos
Another scam prevalent in Southeast Asia is the scooter scam where a provider will try to charge you for costly ‘damage’ to your bike or scooter rental after you return it. Often, any resistance will kill this scam, so being ready with photos to show them will quickly end the gambit.
Trust your instincts
If something feels off, trust that gut feeling. Many scams rely on creating a sense of urgency or pressure. Stay calm, take a moment, and walk away if needed.
Be aware: not all scams are sophisticated. Don’t forget the basics, make sure your money is secure before you go into busy places, and use a strap to keep your phone close to you at all times.
What should you do if you get scammed?
Even the most cautious travellers can fall victim to scams. It’s important to know how to respond quickly and effectively if it happens to you.
Step 1: Report the scam to local authorities
Your first action should be to report the incident to local law enforcement. In many countries, tourists are often targeted by the same scams repeatedly, and reporting it could help other travellers avoid the same fate.
In tourist-heavy destinations the authorities are aware of many common scams and might be able to assist.
Step 2: Contact your bank and/or freeze your account
If you suspect your cards or bank account is at risk, contact your bank. If you’re using a travel money card, you can freeze your card immediately via the app. Many banks have 24/7 support for fraud and scams, and will be able to go into action quickly.
The sooner you notify them, the more chance they’ll be able to recover any funds or stem any further losses.
Step 3: Contact the Australian Embassy
If your passport or other important documents have been stolen, reach out to the nearest Australian embassy or consulate. They can assist with replacing lost documents and may be able to provide guidance on how to deal with local authorities.
In some cases, they may also be able to direct you to legal assistance if needed.
Step 4: Update your travel insurance provider
If your travel insurance covers scams and fraud, be sure to report the incident as soon as possible. Many insurance providers require a formal police report, so it’s crucial to have documentation in hand.
They could help you recover lost funds or provide assistance if you need to cancel further parts of your trip due to the incident.
Bottom line
Even the savviest among us can be scammed, so don’t feel bad if it happens to you. The best thing you can do is be prepared and act quickly if a scam does occur.
But don’t let fear get in the way of your dream holiday! A little bit of prep and knowing the best course of action if something goes wrong are all you need to stop worrying and focus on your vay-cay.
Go deeper:
Credit card sweeteners: the good, the bad and the bittersweet
Should you pause health insurance when going overseas for a long trip?
