Money Scams
All Things Money, Currency Conversion & Payments
Again, a few things to unpack here, so we have broken it into sections.
This is an important topic, as it can materially impact your finances for the rest of your trip, and potentially your finances long afterwards.
ATM Skimming
Sometimes when you go to use an ATM, a “helpful” local will approach you and offer to help you avoid ATM fees... What they are actually doing is taking you to an ATM using a card skimmer to steal your debit and credit card information. There is often a second person nearby / in line pretending to be a customer who will agree with the “helpful” person and their suggestions.
To avoid this one, always use ATMs indoors. Either inside a bank branch, an enclosed ATM Vestibule or the ATM inside hotels. Additionally, always check the ATM itself for a card skimmer.
Here is a short video explain how to spot an ATM with a card skimmer and what to look for.
[Macy's flagship store in NYC had a massive issue with this a couple of years ago! Just because it is a big name brand/store doesn't always mean you can trust the people that work there!]
Card Cloning
Similar to the card skimmer scam, there is of some staff in stores and restaurants cloning your card - This is to say, making a copy of your debit or credit card. This short video shows how alarmingly easy this is to do.
To avoid this, never hand over your card to let them move it under the counter or take it away to the card terminal.
Short Changed
This happens in countries where the bank notes all look similar to each other (Colour / Size - The USA is a prime example).
People (Us included) tend to look at the colours first, so when you get a pile of change that is the same colour, you may think you got the right change — but they have actually given you smaller denomination notes, hoping you won’t notice until after you're gone.
To avoid this, Always count your change every time!
Fake Currency Scams
So this one is fairly common in developing countries.
In cities where there are a lot of currency exchanges near popular tourist attractions, someone may come up to you and ask if you want to change some money [RED FLAG 1]. They’ll offer you a fantastic rate and say they don’t charge commission. They might even tell you they work for an exchange place nearby (They may even have some sort of name tag on). The money they show you is real and they will show you all the ways it’s NOT counterfeit... [RED FLAG 2].
Once you exchange some however, you’ll discover that some of the notes (usually in the middle of pile) are fake — And by that time the person is gone.
As a rule, if it sounds too good to be true, it is. So stick to reputable currency shops and banks, and use your currency conversion app (See the Recommended Apps section) to validate the exchange rate [It wont always be like for like - As the Margin on currency conversion is low, and the stores/banks need to make a small profit], but it will also help you look around for the places offering the best rates..
To avoid getting ripped off , be wary when it comes to people offering you something in a touristy hotspot.
Think of it this way: If you were made an offer like this at home, would you do it? If your answer is NO, its likely a scam to be avoided.
Paying by Card - The Extra "0" Scam (South America & Southern Africa)
In some countries in Asia (Turkey), Africa (Zimbabwe & Sudan) and South America (particularly in Venezuela, Argentina) where hyperinflation is rampant, prices are hard to keep track of.
At the time of writing this blog (30 Dec 2024), 1000 Argentine pesos are worth £0.77 (€0.93 / US$0.97), meaning that meals and taxi rides can run into tens of thousands of pesos, especially for groups, so doing a quick conversion to your home currency on the fly can be difficult.
The extra "0" scam happens when someone (Waiter / Store Clerk / Taxi driver) adds an extra zero onto the amount entered on the card machine hoping you don't notice - The end result being that you end up paying ten times the actual price.
In Restaurants & Shops - Manually total the bill before you pay, so you know what the amount on the card machine should be. Check the amount before you Tap/Swipe/Put your card in the machine. If the amount is wrong say to the waiter/store clerk (They are usually very apologetic) and have them change it [Sometimes you do have to give them the benefit of the doubt - As these currencies have a lot of 0's and we all make mistakes!]. It may be worth while mentioning to the manager on your way out though... just in case its a recurring theme.
In Taxis - Keep an eye on the meter price, and check that the number entered on the card machine matches the meter price before you enter/tap your card! If the amount is wrong say to the driver (They are usually very apologetic) and have them change it.