Most money lost abroad isn't stolen dramatically — it's quietly skimmed, overcharged or talked out of you at the worst possible exchange rate. The good news is that the common traps are predictable, and a few simple habits defuse nearly all of them. This guide covers the scams that actually catch travellers and the practical moves that keep your cash and cards safe. If something feels off while you're travelling, you can ask Mike in the app for a quick second opinion before you hand over money.
ATM skimming and choosing a safe machine
Skimmers are devices criminals attach to ATMs to copy your card and capture your PIN. They're most common on standalone machines in tourist areas, less so on ATMs inside or attached to actual bank branches. Before inserting your card, give the slot and keypad a quick wiggle — loose or bulky parts are a red flag — and always cover the keypad with your hand as you type. Sticking to bank-branch machines in well-lit, busier spots dramatically cuts your risk.
- Prefer ATMs inside or attached to real bank branches
- Check the card slot and keypad for anything loose or added on
- Always cover the keypad while entering your PIN
The dynamic currency conversion trap
At ATMs and card terminals abroad, you'll often be asked whether to be charged in your home currency or the local one. Choosing your home currency — known as dynamic currency conversion — feels reassuring but usually applies a poor, marked-up exchange rate that costs you more. Almost always, paying in the local currency and letting your own bank or card convert is cheaper. Make 'always choose local currency' an automatic rule, and you'll dodge this one every single time.
- Always pay or withdraw in the local currency, not your home one
- 'Home currency' offers usually hide a marked-up rate
- Make choosing local currency an automatic habit
Fake and rip-off exchange booths
Currency exchange is a classic place to lose money, through both outright scams and legal-but-terrible rates. Watch for booths advertising an amazing headline rate that only applies to huge amounts, or that bury steep commissions and fees in the fine print. 'Zero commission' often just means the bad rate is doing the work instead. Know the real mid-market rate before you exchange, ask for the exact final amount you'll receive in writing, and walk away if it doesn't match.
- Check the real mid-market rate before exchanging anything
- Beware headline rates with hidden commissions or fine print
- Ask for the exact amount you'll receive before handing over cash
Overcharging and the wrong-change trick
Some scams are low-tech: a menu with no prices, a 'tourist' bill padded with phantom items, or change handed back short in the hope you won't count it in unfamiliar notes. Taxis without a meter and 'broken' card machines that force cash are common variations. Agree prices before you commit, check bills line by line, and count your change before leaving the counter. Carrying small denominations also removes the 'I have no change' excuse that often precedes an overcharge.
- Agree prices upfront and check every bill line by line
- Count your change before walking away
- Carry small notes so you're not at the mercy of 'no change'
Keeping your cards safe
Your cards are the biggest target, so reduce exposure. Carry only what you need that day and keep a backup card separately, so losing one doesn't strand you. Enable transaction alerts so you spot anything unusual immediately, and never let a card be taken out of your sight to be processed elsewhere. Contactless and mobile-wallet payments are generally safer than handing over the physical card, since the number is never exposed.
- Carry one card, keep a backup stored separately
- Turn on instant transaction alerts and never lose sight of your card
- Favour contactless or mobile wallet over handing the card over
What to do if you're scammed
Act fast — speed limits the damage. Freeze or lock the affected card immediately through your banking app, then contact your bank or card issuer to report fraud and start a dispute; many unauthorised charges can be reversed. Note key details and get a local police report if you'll need one for an insurance or fraud claim. Change any compromised passwords or PINs, and keep your bank's international contact number saved somewhere you can reach without your phone.
- Freeze the card in-app and report the fraud to your issuer at once
- Get a police report if you'll need it for a claim
- Save your bank's emergency number somewhere offline
Key takeaways
- Use ATMs at real bank branches, check for skimmers, and always cover your PIN.
- Always choose the local currency at ATMs and terminals — 'home currency' hides a bad rate.
- Know the real exchange rate before using a booth, and count change and check bills everywhere.
- Limit card exposure, turn on alerts, and if scammed, freeze the card and report it to your bank immediately.
Money scams abroad thrive on travellers being rushed and unfamiliar with local prices — so slow down and the traps mostly disappear. Use bank ATMs, always pay in local currency, know the real exchange rate, and count your change. Keep your card exposure low and your bank's number handy, and on the rare occasion something does go wrong, fast action turns a disaster into a minor hassle.
