Encounters with scammers and con artists are sadly part and parcel of our backpacking adventures abroad. The scams and tricks perpetrated by these dishonest few ruins an otherwise great trip and smear the name of a country that did nothing to deserve it.

One of the most notorious and harm inducing scams we have heard from our travelers is the currency exchange scam, where travelers are duped into exchanging their money for the local currency at very bad terms. There are many versions of this scam and it is to prevent you from falling prey to this that we at Travset, together with our seasoned backpackers have compiled this post.

1. Counterfeit currency

The scam perpetrated by most is the provision of counterfeit currency to foreigners who do not suspect forgery. This is usually done by unofficial money changers on the streets who advertise exchange rates that are too good to be true.

Tourists who are on the lookout for great deals snap such offers up and are left disappointed as these con men are never to be seen again.

It is also very dangerous to be in possession of counterfeit currency as its use can have the police arresting you for its distribution even if unknowingly.

How to avoid – always exchange your currency at legitimate institutions such as banks. Remember, if an offer is too good to be true, it probably is!

2. Sleight of hand

Reports of travelers being given less money than the amount quoted initially are not uncommon. Such scams occur when travelers use unofficial money exchangers and are slow to count the money that is given in very small denominations.

Some scammers insert counterfeit notes inside these small denominations notes to up their profits as well.

How to avoid – use legitimate institutions such as banks when exchanging money and count the money prior to leaving.

3. Different exchange rates

Some money changers have been known to quote favorable exchange rates to attract customers whilst the money exchanged is at one that is unfavorable to the customer. This usually happens at locations where there is a rush and the customer is unable to do the math and/or count the notes received.

How to avoid – use legitimate institutions such as banks when exchanging money and count the money prior to leaving. Ask for a money counting machine if need be.

4. Rigged calculators

Some dishonest money exchangers have been known to use calculators that are rigged in favor of them. These con men will make an elaborate show of punching the numbers into the calculator before showing you the amount of money they will be paying.

How to avoid- do the math yourself on the phone in order to avoid falling prey to this scam.

5. Unusable notes

Some tourists are sold torn, damaged or note that is not in circulation anymore. These notes turn out to be worthless and note that is too damaged might not even be taken by a bank.

How to avoid- familiarise yourself with the local currency and do not accept notes that appear damaged.