Foreign tourists make for the perfect scam victims.
Unfamiliar with local customs and language, it’s easy for travellers to find themselves in confusing and overwhelming situations where they can be fleeced of their hard-earned spending money.
Here are five ways you can prepare for your trip to help you be a savvy traveller and prevent a scam from ruining your holiday.
Scammers exploit tourists’ ignorance of foreign money, overcharging their victims or handing over the wrong amount of change.
Be careful in countries where Australian dollars convert to large denominations of local currency. A vendor might try to give you 1000 dong or rupiah in change when you are really owed 10,000.
Understand the conversion rate of local currency into Australian dollars and get a sense of how much things normally cost, as the price of lunch or a taxi ride can be significantly different from back home.
How to protect yourself
Check online reviews of local venues or attractions for a history of scamming tourists. Restaurants might bring out dishes you didn’t order and charge you for it later, so don’t accept food without checking if you need to pay for it. Ask for a menu to see the price of food before ordering.
Carry smaller values of banknotes on you, and avoid using large bills to pay for minor expenses
When paying by card, make sure you can see the price you are being charged. Check it’s in the correct currency, and look for any extra zeros added to the bill.
Carry smaller values of banknotes on you, and avoid using large bills to pay for minor expenses. You can break up your big notes at trusted places like your hotel lobby or a major bank.
2. Tell your bank and make sure your money is travel-ready
Before you leave Australia, let your bank know where you are going and when, and how they can best contact you when you are away. This will give your financial institution a better idea of when transactions are and aren’t suspicious.
You can do this over the phone, in-person or via internet banking.
Make sure you know how to contact your bank if something does go wrong. Most banks will have a hotline for overseas travellers, so save the number to your phone before you travel, making sure you have included the country extension for Australia if necessary.
Consider setting your card’s transaction limit below your usual amount to restrict the amount of money you may lose
Consider setting your card’s transaction limit below your usual amount to restrict the amount of money you may lose if you’re a victim of a scam or theft.
Ensure you have several ways to pay, including cash, a debit card and/or a credit card. That way you still have access to money if something goes wrong.
“Whether you have a travel money card, debit or credit card, let the provider know ASAP if your card or card details have been stolen,” CHOICE travel expert Jodi Bird says.
“They can cancel the card to prevent unauthorised transactions, and you may also be able to access an emergency cash advance until your replacement card arrives.”
Will travel insurance cover it?
While travel insurance often covers scams that involve your card being stolen and then used fraudulently, CHOICE insurance expert Jodi Bird says whether or not you’re covered can depend on the circumstances.
“Only a few policies appear to cover you if your credit card details are skimmed or stolen, as opposed to the card itself being taken,” Jodi explains.
How to protect yourself from credit card skimming
Skimming is where a scammer secretly steals your credit card data through swiping or tapping. To avoid falling victim to this scam, remember: Stop. Check. Protect.
Stop
When handing over your bank card, never let it out of sight. Travellers have fallen victim to skimming when a shop assistant taps or swipes your card on a hidden machine.
Check
Skimming machines may also be hidden inside ATMs. The Australian Government’s advice is to only use official ATMs inside banks, so research what the main trusted financial institutions are at your destination.
Protect
If you notice a suspicious transaction while travelling, let your bank know immediately.
Scammers may also try to use a card scanner on you as they pass by, making a “tap” payment without your knowledge. You can protect yourself from this by keeping your cards in a scan-proof wallet or sleeve.
Internet banking when overseas
Internet banking can be useful while travelling to control the amount of money in your spending account or to lock your card, but be careful where you use it.
Do not log into your bank account or enter any sensitive information when using unsecure public Wi-Fi networks. If you have a banking app, turn on notifications so you can better keep track of money leaving your account.
Internet banking can help you manage your funds while travelling, but avoid logging into your bank account on insecure wifi networks.
3. Research or arrange transport ahead of time
Jetlagged travellers and naive tourists looking for a ride make for easy scam victims. Shonky taxi drivers often use terminals or tourist hotspots as hunting grounds for unsuspecting foreign visitors.
Dodgy drivers might switch off the meter, claim it is broken, or say certain routes (for example, to and from the airport) are a fixed price.
Not using the meter is illegal in most countries, but drivers may try to take advantage of your ignorance of local laws
Not using the meter is illegal in most countries, but drivers may try to take advantage of your ignorance of local laws and customs. Make sure your driver is running the meter, or you have agreed on an appropriate fare before you hit the road.
How to protect yourself
Before you travel, look up local taxi regulations to help you pick out scams and unlicensed operators, and familiarise yourself with transport services available at the airport. Arranging connections from the airport ahead of time with a reputable operator could save you a lot of hassle.
Once overseas, ask airport or hotel staff for guidance, and use official taxi ranks where you can, avoiding unsolicited offers for a ride at airports and tourist attractions.
What to do if scammed
If you are scammed, it helps to have the taxi details to report to local authorities.
Note down the vehicle number or license plate, taxi company and the driver’s name at the beginning of the trip. If you can’t find this information, this may be a red flag.
Using rideshare
Rideshare apps are available in most countries and are often a more transparent way to arrange a ride and lock in a price before you drive off.
Research what rideshare platforms operate in the country you’re travelling to and install the app on your phone beforehand.
Make sure the driver and car matches what it says on the app before you get in the vehicle.
4. Arrange accommodation and travel documents through the correct sites
The internet age has made booking overseas accommodation or obtaining visas a lot easier, but has also opened the door to scams.
Unsuspecting travellers have lost money to bogus listings on popular accommodation sites like Booking.com.
Be careful if you’re directed off the booking platform to a private messaging app or another unknown site for payment. As well as fake listings, scammers have constructed whole websites to fool travellers trying to arrange accommodation or travel documents. Scam sites mimic official pages, using similar URLs to the real deal.
The Australian Department of Foreign Affairs and Trade warns that you could be arrested or jailed if you are caught travelling with false documentation
Countries that issue digital arrival cards have also issued warnings about fake sites, and travellers applying for an International Driving Permit (IDP), often required when driving overseas, should be on the lookout for fraudulent providers.
Scammers might pay to have their site appear at the top of search results, so be wary of sponsored pages.
Being in possession of fake documents could even land you in trouble. The Australian Department of Foreign Affairs and Trade warns that you could be arrested or jailed if you are caught travelling with false documentation.
Will travel insurance cover it?
If you fall victim to a fake accommodation listing or visa site, you probably won’t be able to claim your losses on travel insurance.
CHOICE insurance expert Jodi Bird explains that many policies exclude “cyber acts”.
“Insurers define cyber acts as a threat or hoax threat involving access to, processing of, use of or operation of a computer system, ” Jodi says.
If you fall victim to a fake accommodation listing or visa site, you probably won’t be able to claim your losses on travel insurance
Fake listings and websites would likely fall under this definition, and Jodi says there’s only one insurer CHOICE is aware of that will cover it.
Travel insurance also only covers events that occur after departure, so any money lost to fake bookings or documents before you leave won’t be covered.
How to protect yourself
Arrange accommodation and travel documents well ahead of time, taking care to visit the correct sites.
For hotels, check the reviews for signs of scams. For visas, head to smartraveller.gov.au for official guidance on where to obtain the correct travel documents.
Even after you have booked accommodation, verify any emails from your hotel asking you to act quickly to change your booking, provide payment details, or click on links. Scammers have been known to hack hotel booking systems and contact guests, attempting to steal money or personal information.
Some internet scams may start before you’ve even thought about leaving Australia. Fraudsters have used fake profiles on dating apps to pretend to be an overseas love interest.
Stop
Never send money overseas to someone you have never met. Make sure you have confirmed their identity before travelling abroad to meet them.
Check
Learn the signs of a relationship scam.
Watch out for “lovebombing”, where a scammer might call or message you often to make you feel special. Be wary of the relationship moving too fast.
A scammer might keep making up excuses about why they can’t meet or join a video chat, trying to conceal their real identity.
After you have been chatting for a while, your online “partner” might tell you they are in urgent need of cash and ask you to transfer them money, or encourage you to invest your money in things such as cryptocurrency.
You can also check by searching their name along with the word “scam”, or doing a reverse image search to see if they are a real person or have been involved in scams before. Beware if the person has little or no connections on their social media accounts.
Protect
If you have fallen victim to a romance scam, call your bank immediately. Change your passwords if necessary and if you are feeling distressed, call Lifeline on 13 11 14.
Block the scammer on your social media and dating accounts and report the incident to Scamwatch to help protect others.
5. Be mindful with your belongings and luggage
In tourist hotspots, thieves or their accomplices may distract you in order to take your valuable items, so treat any unusual interaction as a potential theft attempt.
Research areas where pickpocketing is common so you know where to stay alert, and know what scenarios to treat with caution. Travellers often share on social media the scams they’ve encountered in different cities.
Research areas where pickpocketing is common so you know where to stay alert, and know what scenarios to treat with caution
Look out for crowds of people approaching you, an offer of help or a request for help from a stranger, or being approached by someone at a cafe or restaurant.
Being overloaded with luggage may also make you a target to snatchers or pickpockets, so pack light when you can.
Will travel insurance cover it?
Unlike online scams, CHOICE expert Jodi Bird says “physical loss” like pickpocketing is typically covered by travel insurance.
“Just ensure you get a police report to give your insurance provider,” he says.
How to protect yourself
Put valuables like cash, credit cards and your passport in places that are harder to reach, like in a money belt or somewhere under your clothes, and store your cash in multiple locations so you don’t lose everything at once if it happens.
Consider carrying a tamper-proof bag while travelling and never leave your phone or wallet out when sitting or dining outdoors.
You might be approached by someone asking you to take a bag into another country for them. While they might offer your money or tell you it is for their family, it may contain illicit items that could get you arrested or jailed.
To avoid this scam, remember: Stop. Check. Protect.
Stop
Never carry luggage or a package from someone you don’t know. They may try to build rapport with you before they ask you to take their item, but this is a deliberate tactic to manipulate you.
Check
If you are carrying bags for someone you know and trust, make sure you are aware of what is inside. Even if it seems innocuous, check if it is legal where you are travelling. When entering Australia, check the Australian Border Force website to see if you can bring it into the country.
Protect
If you are approached to carry an item for someone, notify local authorities. This will help stop fellow travellers getting caught up in the same scam.
What to do if scammed while travelling
If you’ve fallen victim to a scam involving your credit card or bank details, contact your bank immediately.
James is a journalist with CHOICE's editorial and investigations team, decoding complicated consumer issues and reporting on how corporations and businesses affect the lives of Australians.
He has previously created podcast series for We Are Explorers and Protect Our Winters Australia, and has published in Cosmos and The Citizen. James has a particular interest reporting on science, environmental and social issues, and was a recipient of a JEERA Ossie Award for his journalism.
James has a Master of Journalism and Bachelor of Science in Physiology from the University of Melbourne. LinkedIn
James is a journalist with CHOICE's editorial and investigations team, decoding complicated consumer issues and reporting on how corporations and businesses affect the lives of Australians.
He has previously created podcast series for We Are Explorers and Protect Our Winters Australia, and has published in Cosmos and The Citizen. James has a particular interest reporting on science, environmental and social issues, and was a recipient of a JEERA Ossie Award for his journalism.
James has a Master of Journalism and Bachelor of Science in Physiology from the University of Melbourne. LinkedIn
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