National Scams Awareness week, run by the Australian Competition and Consumer Commission (ACCC), starts next week , encouraging Aussies to stay vigilant both online and overseas.
With over a third of Aussies (36%) nervous to travel out of fear of being fleeced by scams, it may be time to get clued up on the types of cons out there and how to avoid them.
Leading travel insurance comparison service comparethemarket.com.au ran an independent survey from a nationally representative panel of 1,500 Australians to reveal the most common cons travellers have faced overseas.
Over half of Australians have reported seeing counterfeit goods being sold to holidaymakers (57%) and a further 56% have seen or heard about tourists being overcharged by taxi operators. On top of this, almost one in two have seen fake charities and beggars asking for money, while another 45% say they have seen unsuspecting tourists being pickpocketed on their travels.
Other known cons include schemers putting something into someone’s hand before demanding money (22%) and rental car companies charging exorbitant fees for damage to a vehicle (14%).
The Department of Foreign Affairs and Trade received over 2,500 theft reports from Aussie travellers in the last three years. The top five countries for scams where tourists reported the most thefts, were Spain at number one, followed by Italy, Mexico, Thailand and Japan.
Money expert at comparethemarket.com.au Rod Attrill said travellers should get informed about common travel scams and how to spot them to avoid being fleeced while holidaying.
“Millennials make up almost one-fifth (18%) of the 10 million Aussies who make a leap across the ocean every year. But sadly, half of those aged 25-34 are discouraged from international travel because of scams,” Rod Attrill said.
“That’s why travel insurance is crucial when heading overseas as it can help cover some financial losses resulting from cons, theft and other mishaps. However, it’s important that travellers read their Product Disclosure Statement (PDS) to find out exactly what‘s included and excluded in their policy as well as any cover limits.”
“Lastly, consumers should also stay vigilant when they touch down back home and get itchy feet. In the last three years, Aussies lost $206,151 collectively to travel prize scams, whereby fraudsters
trick consumers into handing over their credit card details to claim a free or discounted holiday,” explains Rod.
Comparethemarket.com.au reveals what you can do if you’re scammed overseas to protect yourself against out-of-pocket costs.
- Watch your alcohol consumption. Most travel insurance policies have a blanket alcohol exclusion which may extend to scams. If you’re pickpocketed at a bar or nightclub for example[1], your insurer could have grounds to void your cover if it found you were too intoxicated to take due care of your belongings.
- Check your coverage for property hired or loaned to you. If you borrow a camera from a friend and a stranger offers to take a photo for you on your trip before disappearing, you could be left to foot the replacement bill, since some insurers may not cover loss or damage to hired or borrowed equipment. That’s why it’s crucial for anyone who takes out travel insurance to check their PDS cover and any exclusions.
- Ensure you’re covered for every country you’re visiting, including layovers. If you’re skimmed by a dodgy taxi operator from the airport[2] on a stopover in Hong Kong but your travel insurance only includes coverage for Europe, you may not be covered for that loss or any other event or emergency for that stage of your journey.
- Don’t forget to extend your cover. If you’re swindled by a merchant who overcharges you, after you decide to take a few extra days to travel around Thailand[3], but forgot to request a cover extension from your insurer, you could lose that cover for the entirety of your journey, not just the part of the trip you forgot to tell your insurer about.
- Be wary of financial collapses and fake advertisements. If you book tickets to a theme park for the kids and the establishment goes bust, you may not be reimbursed for the cost of the tickets as most travel insurers don’t offer cover following the bankruptcy of service providers. On top of this, if it turns out the attraction advertisement was a hoax too[4], your travel insurer will most likely not provide cover either.
“The good news is that most travel insurers cover losses resulting from misplaced credit cards and fraudulent use of cards if it is reported to the police and other relevant authorities within your insurer’s prescribed time limit, usually in 24 hours. Travellers still unsure about what type of travel insurance they need to protect themselves overseas should research and compare their options through comparison services such as comparethemarket.com.au,” says Rod.
[1] Smartraveller- Scams (July 2019): https://smartraveller.gov.au/guide/all-travellers/avoiding-danger/Pages/scams.aspx
[2] Smartraveller- Scams (July 2019): https://smartraveller.gov.au/guide/all-travellers/avoiding-danger/Pages/scams.aspx
[3] Smartraveller- Scams (July 2019): https://smartraveller.gov.au/guide/all-travellers/avoiding-danger/Pages/scams.aspx
[4] Smartraveller- Scams (July 2019): https://smartraveller.gov.au/guide/all-travellers/avoiding-danger/Pages/scams.aspx
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