How to keep your money safe while abroad

Brazilian currency: Real. Money from Brazil. Front view senior person holding bills.

When seasoned travellers Jane and Duncan Dempster-Smith were jostling to board a busy train in Nice, France, their gut told them something was wrong.

Two men helped Jane, 67, onto the train, pushing her husband Duncan, 68, out of the way.

What the couple hadn’t realised was that during the last 20 minutes they'd been watched - the 'helpful' gentlemen knew exactly which pocket Duncan's wallet was in when they made contact with him.

Just as the doors were closing, the men jumped off the train.

Intuition kicked in, Duncan grabbed Jane and the pair jumped out too.

They rushed to catch up to the laughing men making their way out of the station with their loot. Duncan put his hand on one of their shoulders.

"There was a look of horror on their faces," Jane recalls.

The men sheepishly opened their backpack, full of tourists' precious belongings, and Jane and Duncan were allowed to retrieve their valuables.

"It was probably risky doing this as we didn't know if they had a knife, but by only grabbing our belongings I think we were lucky."

Jane reckons that older travellers can often be easy targets for opportunistic thieves: "They think we're not street savvy or tech savvy and we are slow. But we are switched on to technology and some of us have been travelling since we were young adults - do not underestimate us!"

Jane and Duncan sold everything they owned in 2013 to travel the globe, living off $65 (around £50) a day for six years and managing their finances by housesitting.

They still roam the world and write about their experiences and tips on their blog To Travel Too, but have been doing so from their home in Australia since the Covid pandemic.

Despite being experienced globetrotters, the pair have not been immune to scams.

In addition to their experience in Nice, they were also the victim of credit card fraud after they used an ATM in Cusco, Peru, which had been fitted with a skimming device.

Thankfully, in that case, their bank returned the money.

But Jane said it still left them feeling "silly and vulnerable", despite always taking precautions like using ATMs inside banks with cameras.

If you do need to take out money abroad, the same advice for avoiding cash machine scams in your home country is relevant abroad.

Always be wary of someone trying to distract you when using the machine, and always approach them with suspicion – if anything looks out of the ordinary, don’t use it.

Using cash machines in banks or busier areas will make it less likely to have been tampered with – but remain on your guard.

It's hard to calculate how many people are victims of theft or fraud on holiday with an estimated half of travellers not reporting crimes, according to the European Crime Prevention Network.

Cities like Barcelona, Madrid, Rome, Athens, Amsterdam and Paris have become notorious hotspots for tourist crime, along with more far-flung destinations like Hanoi.

“In our experience you are most likely to be robbed at airports, bus stations or railway stations,” says Tim Riley, managing director of insurance provider True Traveller.

“Looking at our claims we have more thefts in Mexico than any other country of the world, but unfortunately there are scammers and thieves everywhere, so you have to remain vigilant. The same crime can happen in Oxford or Oaxaca.”

A backpacker wearing a travel money belt, choosing fresh vegetables at the supermarket. Customers buying food at grocery shops. USA. — Shutterstock / Janice Chen

How much cash should you carry?

The amount of cash you need to take will vary depending on where you’re travelling. While you can largely get by with plastic in much of Europe and the US, parts of Latin America, Southeast Asia and Africa will rely more heavily on cash, as well as areas of Greece, Portugal and even Japan.

But Riley suggests you don’t carry any more cash than you’ll likely need to reduce any potential loss that occurs if you’re the victim of theft.

If you’re worried you’ll run out of cash, where possible use a card that doesn’t charge transaction fees or a pre-paid travel card that allows you to top up with money as you go.

Can you just use your card when travelling abroad?

“Always use the room safe in your hotel and only take with you what you actually need for the day,” Riley adds.

“So, take one credit card, and just £30 or £40 to use in shops who may not take cards.”

Consumer Champion Jane Hawkes, who runs the blog Lady Janey, says: “If you wish to take cash, keep it hidden and consider carrying it in unusual places such as empty bottles or containers.

“A secure travel money belt can be easily tucked under clothes or use a slash-proof travel bag or neck pouch.

“Make sure you take out appropriate, comprehensive travel insurance. This may come at a premium due to your age but the cost of not taking insurance out could be a lot higher.”

In addition to cover for medical expenses, a good policy should provide some cover for your cash as well as any documents like passports that you might lose if you’re robbed.

Holidaymakers can also prepare by taking photographs of their credit cards and information pages of your passports then emailing them to themselves, Riley says.

Making a note of your bank’s telephone numbers is also wise so that you can report any theft as soon as it happens. Whichever way you store the information, ensure it’s readily accessible if you need it.

For Jane and Duncan, travel belts are still “a favourite” safety precaution, especially one with radio frequency identification (RFID) blockers to protect against contactless cards being scanned on the move.

While the chances of such cards being read or copied by thieves is very low, a belt with an RFID-blocking pocket can provide greater peace of mind.

You could also add in your own tracking device, such as an Apple Air Tag, which you can trace via your iPhone.

The couple also recommend taking a decoy purse or wallet with an expired credit card and $5 note to hand over if ever accosted.

They also suggested that it’s important to try not to look like a tourist, so learn the layout of your destination beforehand, avoid looking at your phone, and if you need to check something go inside a reputable shop or restaurant.

Riley agrees: “If you’re standing on a street corner looking at your iPhone 15 Pro Max, with your new camera around your neck, looking lost, you’re being looked at.

“Do a bit of research before you go out, and be circumspect if you do get lost, and act appropriately. Try to make this a habit, regardless of what country you’re travelling in.”

What should you do if you are robbed?

“If, unfortunately, you are a victim of theft on holiday, speed is of the essence,” Hawkes says.

“Inform your card providers and report to local police immediately. Ask for a written report and reference number in case you need to make an insurance claim.

“If your passport has been taken get in touch with the nearest British Embassy or consulate.”

Keep an eye on your statements when abroad using a mobile banking app (on a secure connection) and look out for any payments you don’t recognise.

Contact your bank immediately and let them know when the issue occurred. It will cancel the old card and send you a new one in the post.

While some banks will deliver overseas (for quite a substantial fee), it’s likely you won’t get it in time. Consider having a backup card for such emergencies so you’ll still have access to cash.

If you can, keep a scanned copy of your passport and a different form of ID (such as a driving license) in a separate and safe location as well as having a digital copy to hand – this can help speed up the process if you need to get a replacement.