Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
Top 12 Holiday Scams and rip-offs
Jasmine Birtles
20th Jun 2024
Updated 20th June 2024
A holiday should be about relaxing and forgetting about the stresses of everyday life. But, there are people out there who want to rip you off and take your hard-earned money. That’s why it is so important to be aware of potential holiday scams.
Nothing spoils that chilled-out mood more than when you’re ripped off, so we’ve put together 12 holiday rip-offs scams to look out for on your travels.
- The taxi trap: surprisingly overpriced trips
- Rental cars: cheap offers could result in expensive bills
- Tip trap: pay more for less service
- Credit card trap: dodgy devices that spy on your data
- Valuables can get stolen from your hotel room
- Internet: protect your data
- Change: big banknotes are sometimes worth less
- Cover charge: paying too much for a snack
- Watch out for pickpockets
- Tea-house rip-off: don’t get fleeced for a so-called tea ceremony
- Hotel Scam
- Fraudulent booking sites
1. The Taxi Trap
Taxis can be a cheap way of getting about when you’re on holiday. However you need to be careful that you don’t get taken for a ride in more ways than one: unnecessary detours, excessive prices and shady additional charges are the most common ways to raise the price for a taxi ride.
To avoid such rip-offs, settle the destination and a fixed price before departure. You should also ask the driver to show his licence and a taximeter. Prepare yourself for a journey by finding out the normal taxi prices of the region you’re travelling to. Use Google Maps to set the journey on your phone and follow along – if the driver appears to be going the long way around, speak up to ask why they aren’t taking the most direct route. There is sometimes a legitimate reason, such as roadworks, but it is always best to check.
If possible, pre-book a taxi using an app like Uber. This will set the price for you ahead of time and help you see the route that is planned.
2. Rental Car Rip-Offs
A rental car’s a decent alternative to taxi fares if you’ll be doing lots of moving around. It helps you stay in control of your trip and means you can take detours to explore less touristy places.
When renting a car, watch out for so-called ‘full-empty offers’. Here, you’re offered to rent a fully-fuelled car and return it with an empty tank.
Of course, what normally happens is that you don’t use the full amount of fuel and return their car with an half-empty tank, leaving you out of pocket and the rental company laughing all the way to the bank. Always choose to return the car with a full tank – that way you’re only paying for the fuel you use.
You should also thoroughly check the car before driving away. Ask for a document noting any damage (dents, scratches, broken locks etc) if it isn’t offered. Take photos or a video of the car when you pick it up, before you drive it away.
Ask about breakdown cover and insurance, too. Sometimes the excess is ridiculous, or simple things aren’t covered. For example, in Iceland, car doors often aren’t covered because strong winds will commonly blow them so hard when they’re opened it can damage them. The same goes for windscreen cover.
Finally, check the deposit terms. Some places might seem like a cheap hire but insist on a £1500-or-more ‘holding deposit’ on your credit card. This is to cover the insurance excess if something happens. However, the amount will be deducted from your credit card before you leave. You then need to request the refund when the car is returned. It can take several weeks to get the refund processed.
3. Tip Trap
Know how much your bill ought to come to and make sure you check it before you pay. The ‘free’ bread basket often isn’t, and many places in Europe make you pay for tap water too. If a charge isn’t advertised on the menu, dispute it on the bill. Hidden service charges are the most common. Check how many drinks you ordered and were added to the bill – this is a common scam to add one or two extra glasses of wine or beer, as alcohol has the highest profit markup.
It’s also advisable to research the ‘tip rules’ of the country you plan to travel to so you know how much you’re expected to leave as a gratuity.
4. Credit Card Spies
If you don’t want to get into trouble by paying with cash in foreign currency then you can easily pay by debit card. Watch out, though. Rigged card readers may spy on your data and fraudsters could go shopping at your expense. And NEVER leave your credit card unattended! If the buttons on a card machine seem to be stiff to push, you struggle to get your card in or out, or it looks like there is something stuck over the card reader, go somewhere else or use cash.
When you’re standing at an ATM, make sure nobody is standing close behind you to see your PIN.
Most credit card companies offer a service notifying you of any transactions by text message. Ask for a receipt after every payment, check it and keep it.
5. Hotel Room Thieves
Never leave valuables in your hotel room lying around; always use a safe for storage. We recommend you take a photo of the things you put in the safe.
If you don’t have a safe in your room, ask the receptionist for a hotel safe and try to get a receipt of the valuables you put in there. Keep copies of important documents like your passport and save these to a cloud server like Google Drive or iCloud, so that if you’re robbed you can still access them in an emergency.
When you’re in your room, use a handle lock to secure yourself. If you can’t find one, place your suitcase against the door. This will alert you if someone is trying to enter your room while you’re inside.
At check-in, don’t say your room number out loud enough for anyone standing nearby to hear it. This helps reduce the risk of someone clocking your designer luggage or diamond rings and knowing which room to find them in.
6. Internet Scams
It used to be that we’d go on holiday and leave our computers (and sometimes even phones) at home. These days, we’re all busy uploading our snaps to Insta and checking emails on our days off. But connecting to public internet can put you at risk.
Always check you’re on a secure connection and if you’re unsure, install an app like NordVPN to use a VPN service. You can also protect your passwords with two-factor authentication to make sure someone can’t steal your data.
If you suspect your data has been leaked, change your passwords IMMEDIATELY.
Many hotels now have Netflix and other services on smart TVs for you to log into. Always, ALWAYS log out if you’ve logged in at any point during your stay, as it’s an easy way for someone to get your personal data.
7. Check Your Change
Familiarise yourself with the local currency, including the coin value. Always check your change while you’re at the counter as it’s too late once you’ve left the shop.
Bureaux de change, though offering attractive exchange rates, also charge horrible fees. Don’t go into exchange offices as they offer attractive exchange rates but make their money with extremely high extra charges. Take your time to find a reliable exchange office. Also, be wary of requests for change from locals – as a tourist you’ll stand out a mile and be vulnerable to potential con tricks.
Most places now accept spending on debit or credit cards. Look for a travel-specific prepaid card to protect your data and money, while getting a good exchange rate. We like Revolut, which is an online account with fee-free currency conversion. You can transfer money in like a normal bank account, but this lets you limit how much can be accessed. It is also easy to freeze the card if you lose it or it’s stolen.
8. Cover Charge Catch-Out
After an extensive sightseeing tour you may be hungry and thirsty. However, some restaurants have sneaky ways to make a bit extra from you, so look out for well-hidden ‘information’ about cover charges on the menu.
Before ordering, check the menu and look for service surcharges. If you’re not happy, walk out.
A recent scam is to add an automatic tip to simple things like buying a bottle of water from a shop! Always check your receipt and refuse a tip if you don’t want to pay it.
9. Watch Out for Pickpockets!
Pickpockets are rife and so easy to miss. Keep your bag zipped closed at all times, and never walk around with your phone in your hand or back pocket. You can keep things close to your chest (literally) with an under-shirt belt that holds your passport, cards, and phone if you’re in a particularly risky area.
Public transport and busy shopping streets are the most common places to lose something to a pickpocket. Be aware of anyone standing too close to you. They often operate in groups, so be wary of a group entering a train carriage and standing around you – they’ll appear to be talking but one will be trying to get into your bag.
Here’s a pickpocket scam to be aware of: in tourist areas you might by approached by strangers asking you to buy souvenirs. After the transaction they then hug you, apparently to express their gratitude. But it’s really a cover to grab your purse or wallet. In any case, try to avoid such approaches, keep your distance and never leave valuables unattended!
Make sure you write down the information of your banks, bank account numbers (not passwords!), and have copies of your passport all uploaded to a cloud server. This will make it easier to contact your banks in an emergency to freeze your cards, and arrange for an emergency passport if that gets stolen.
10. Tea-House Tacky: Ceremony Charlatans
If you’re visiting China you might want to watch out for this hoax exploiting the country’s tea heritage. Fraudsters approach you and offer to take you on a city tour, which ends at an allegedly historical tea house. Often these ‘tea houses’ are just decorated back rooms! After tasting some tea, you’re asked to pay hefty bills, often more than 100 euros for only a few cups. Our advice: don’t go anywhere with strangers!
The same happens in other countries where you might stand out as a tourist. Tuk-tuk rides might take you via their ‘uncle’s shop’ and force you to buy some overpriced tat before they’ll finish your journey, for example. Always try to travel through reputable tours and services.
11. Hotel Credit Card Scam
When you arrive at a hotel and check in you are usually required to leave your credit card for charges to your room.
The scam starts when you get a call from someone who appears to be a receptionist at the front desk. They’ll call you in your room and make up a plausible story that will go something like: “Our database has crashed and we need you to help us to reconfirm your credit card details.”
In quite a few cases the con artists have called up the hotel guests in the early hours of the morning to catch them off their guard and a bit confused – it’s more likely guests will hand over their details instead of going down to the front desk to sort any issues out.
People who have been victim to this type of hotel scam have said that it is very believable as the con artist sounds so professional. They’re very apologetic and polite, acting sorry for the inconveniences caused.
Most of the scam artists have managed to call up hotel guests because they’ve been able to break into the hotel’s phone system and contact guests directly. Never give your financial details over the phone – it might be an inconvenience, but tell them you’ll go to the front desk to sort it out. They will usually hang up or try to persuade you to stay on the line – but go downstairs and talk to reception about it. They will need to know that someone is doing this on their phone systems, too.
12. Fraudulent Holiday Booking Sites
Even before you’ve gone on holiday you can fall prey to a holiday scam – the actual booking site.
A report by the City of London Police’s National Fraud Intelligence Bureau (NFIB) estimated that British holidaymakers were scammed out of £7m by fraudsters in 2015, with £2.2m of this being lost to fake online sites and reviews.
What they do is set up copy-cat websites offering all-inclusive services including flights, hotels, transfers and travel insurance.
These fraudulent sites look normal and they’re pretty easy to set up. As they use a credible domain name it’s even easier for them to sucker us in.
There’s also the issue of trusted established websites like TripAdvisor which can also be plagued by bogus reviews recommending fake holiday companies or websites.
How can you protect yourself?
- Shop around – if one particular website, that isn’t one of the big travel companies, is offering a deal much lower than the rest then think twice. If it looks too good to be true, it probably is!
- Unless you have 100% verified who you are dealing with, do not pay for your holiday by bank transfer, Western Union or cash. Use your credit or debit card that at least offers a level of consumer protection.
- Only use websites that have a verified identity. If you are asked to hand over personal details or credit card numbers don’t do it unless you are in a website protected by SSL (look for a green browser bar or the padlock to left of the web address). Quickly check the details of the domain name of the website at who.is – when was it registered? If it was only set up in the last year be suspicious. Also if their details are hidden be very suspicious!
Real true
Hlo
An informative article to help avoid the holiday rip offs.