Travelers are vulnerable: Here’s how to keep your money safe while traveling

Depending on where you’re going and the type of trip you’re planning to take, travel can be relatively safe. However, there are steps you can take to minimize the threat of physical or financial harm before you travel, whether domestically or abroard, just as there are moves you can make to avoid issues once you’re there.

Here are some tips and tricks to keep your money safe before and during your next trip.

How to prepare for your trip

Plan on using mostly credit cards

One way to stay financially safe while traveling is to use credit cards wherever and as often you can. Credit cards come with zero liability protection in case your card is stolen or compromised, as well as other consumer protections. If you use debit cards, on the other hand, you will have fewer protections and could find yourself on the hook for losses.

Furthermore, when a thief swipes your credit card, they’re not touching the money you’ve earned or what you use to pay bills. Stealing your cash or a debit card, however, could be more devastating as you may have to wait days for funds to be returned to your after filing a dispute with your bank.

The situation is even more dire for lost or stolen money. Even after filing a police report for stolen cash, you might never get it back.

Make sure you have a few credit cards before your trip, and specifically ones that don’t charge foreign transaction fees on purchases in foreign currency if you’re travels will take you abroad. If you are traveling somewhere that may require cash, take a debt card with you for ATM withdrawals, but keep it locked in your room safe when you aren’t using it.

Different credit cards offer various travel perks (such as free lounge access, lost luggage compensation and travel insurance), so it can be a good idea to take two or more cards that align with your needs. It’s also smart to have more than one card handy in case you lose one. Cards issued by the Visa and Mastercard networks tend to have wider global acceptance than those issued by American Express and Discover.

Set up alerts

Setting up alerts on your credit and debit cards can ensure you’re notified of each charge made during your trip. These notifications can come via email, text message or push notifications on your phone, and you can get them each time you are logged into a reliable internet connection.

These alerts could help you react quickly in the event your card information is stolen and used fraudulently even though you still have possession of your physical card.

Order some currency for the country you’re traveling to

Even though it’s safer to rely primarily on credit cards, it’s still a good idea to have some cash available as a backup — and not just because it’ll come in handy if your cards are stolen. Smaller restaurants and retailers might insist on cash, and you could need cash to pay for smaller transactions with street vendors. Also, if you’re somewhere off the beaten path, cash is likely to be a more readily accepted mode of payment.

In most places in the U.S., you shouldn’t have trouble finding an ATM for needed cash. But if you’re headed abroad, plan ahead. You can pick up cash before traveling overseas by exchanging your U.S. dollars for the currency of your destination, for a fee, at a bank or credit union. At your destination, you can also get local currency at an ATM or at the airport right after your arrival. If you have to use an ATM, take the time to find one in a safe location and check for signs of ATM skimming devices.

Invest in an RFID-blocking wallet or money belt

When you do carry cash, make sure to keep it safe. Opt for a money belt you can wear around your stomach, or use a jacket with pockets on the inside to stash your cash in an inconspicuous manner.

You can also invest in an RFID-blocking wallet that ensures thieves can’t “lift” your credit card details with special equipment when you’re nearby.

Photocopy necessary documents

Make copies of your important travel documents before you head out on your trip, including an additional set of copies to keep back at home. Documents you’ll want to have copies of include ports, visas, the front and back of your credit cards and even your hotel and travel reservations. In addition to printing physical copies of these documents, you may also want to take a picture of them with your phone.

Consider telling your bank you’re traveling

Many banks no longer ask travelers to directly inform them before they travel abroad. Instead, banks know enough about your transaction history and activities to make reasonably accurate judgments about whether you’re traveling. This is especially true if you booked your travel on the same card you decide to use while on your trip.

Still, it doesn’t hurt to check with your bank before you embark. Banks often utilize fraud prevention measures that could be triggered if they see activity on your card that isn’t in line with your typical spending patterns. Your issuer could then suspend your while ing you to the charge, potentially putting you in a tough position while traveling.

Since you don’t want to have a card transaction declined unexpectedly and be left without any means of paying for your purchase, keep your bank informed about your travel plans. Then, when it sees any charges you make while miles away from your home, there shouldn’t be an issue.

Consider getting travel insurance

You may also be wondering if travel insurance is worth it. This sort of insurance offers protection against medical emergencies, trip cancellations and lost baggage.

However, note that many top travel credit cards also come with travel insurance benefits that protect you from the fallouts of canceled flights (including a potential hotel stay) or lost baggage, assuming you use the card to book your travel. Medical expenses that your health insurance won’t pick up could also be covered by your credit card’s travel insurance.

If you’re on an extended international trip, though, it may be a good idea to take out a separate travel insurance policy. These types of policies are available on a one-off or annual basis, and they can be used to cover any shortfalls between your card’s travel insurance and your medical insurance. Take the time to evaluate any travel insurance or card benefits you already have access to before deciding whether a standalone policy will be worthwhile.

Special insurance considerations for international travelers

If you’re traveling internationally and hoping to rely on travel card medical insurance for coverage, you may want to think again. While many credit cards offer robust protections for trip cancellation and interruption, lost and delayed baggage and other travel mishaps, they come up very short when it comes to covering overseas medical emergencies. In fact, most travel credit cards offer zero coverage for medical costs if you become sick or injured during your trip.

If you’re worried about having health coverage that can kick in if you become hurt or ill overseas, you’ll want to purchase a travel insurance plan with coverage for emergency medical expenses and emergency medical evacuation.

How to stay safe while you’re traveling

Watch your credit and debit cards like a hawk

Credit card scams like credit card skimming are common in some destinations, particularly overseas. This scam in particular may take place at gas stations and at ATMs, as these places can be set up to capture your card information and enable scammers to use it for fraudulent transactions.

Make sure to look out for credit card skimmers that are placed over payment terminals with the goal of stealing your credit card information. Other tips to keep your credit cards safe while traveling include:

• Don’t give your credit cards as a security deposit to tour operators or others.
• Keep your credit card within your line of sight any time you make a payment.
• Prevent people nearby from seeing your personal identification number (PIN) when you enter it at the ATM.

Keep your money and documents safe

To protect money and documents while you’re away from home, consider these tips.

• Don’t let a third party keep your port as “security” or for any other reason.
• Avoid overindulging at local bars. Doing so can compromise your judgment, allowing unscrupulous people to take advantage of you.
• Don’t keep all of your cash in one place. Split it between your wallet, money belt or hidden pockets to avoid losing everything to one mishap.
• Keep your phone on a lanyard attached to your wrist if you need to use it in public to avoid snatch and grabs.

Use the safe in your hotel room

Take advantage of the safe in your hotel room, which you can use to store cash, credit cards and documents while you’re out and about and don’t need them. In most destinations and circumstances, there’s no reason to bring your port, all your funds and your cards when you’re out sightseeing for the day.

Be careful about WiFi networks you use

Never to sensitive s when you’re using a public internet connection. If you need to access bank and credit card s while you’re traveling, consider setting up and using a virtual private network (VPN).

Watch out for pickpockets

Pickpockets also present a hazard to unsuspecting tourists. Based on tourist reviews, popular tourist spots such as Barcelona, Amsterdam, Paris and Rome tend to attract pickpockets who prey on tourists, so be careful in these types of destinations. Pickpockets may operate alone or in a team, with one person distracting you while their partner takes your wallet.

Be watchful when shopping with street vendors too, as they could compromise your credit card or give you incorrect change. And while most merchants are reputable, some may team up with pickpockets and distract you while their partners ply their trade on you.

What to do if you’re scammed or robbed while traveling

As a tourist, you may be vulnerable to being robbed or scammed. Be especially careful when you’re in a crowded area, as pickpockets could sense an opportunity to take advantage of you. That said, it may not even be a physical assault that you fall victim to. You could have your card information or other sensitive personal information stolen if you use unsecured public WiFi, use an ATM with a card skimmer or lose your cards.

To minimize the impact of an attack, don’t carry more cash than you anticipate needing for the day. Also, be careful with your mobile phone, as it contains a lot of information about you, potentially including your credit card and bank information.

Report your credit and debit cards lost or stolen

If your credit card is stolen, get in touch with your bank and notify them right away. That way, they can deactivate the card and stop thieves from using it for fraudulent purposes from that point forward. As long as you report the card stolen, you won’t be on the hook for fraudulent credit card charges. Some credit card companies even offer emergency card replacement, meaning you could get a new card while you’re still on your trip.

If your debit card is stolen, you’ll also want to your bank immediately. They will cancel the card so hackers and thieves won’t be able to use it, and they’ll notify you of your next best steps.

the local police

In case you do end up getting robbed, immediately the local police station and file a report. You should also get a copy of this report in case you need to file an insurance claim. If it’s your port that thieves get away with, get in touch with the nearest U.S. embassy as soon as possible.

Keep an eye on your credit reports

When you get home, make sure to check your credit reports regularly. This move can help you discover if a thief managed to open new s in your name using information they stole from you. If you find incorrect or suspicious information on your credit reports, you can take official steps to dispute the information and have it removed.

If a thief has enough information about you to open new s in your name, this can also be a huge red flag for what’s to come. You may want to freeze your credit reports to prevent anyone (even you) from opening new s in the future. You can also invest in identity theft protection services.

The bottom line

Traveling can be a life-changing experience — make sure it’s a good one by protecting your money when you venture from home.

Credit cards offer the safest way to spend money while traveling thanks to their robust fraud protections, but it’s still smart to set up alerts and be on the lookout for scams while you’re traveling.

If you do carry cash, carry only the amount you need and keep it in a secure money belt or interior pocket of your jacket.

With some planning and common-sense precautions, you can protect your money while you travel and focus on enjoying your adventure.

Frequently asked questions

• Where is the best place to keep your port and money while traveling?

  It’s a good idea to get a money belt that is inconspicuous and stores money and other documents close to your body. You should also make a copy of your port to store at your hotel, along with any extra cash. Take a picture of your port to store on your phone, too.

• What does travel insurance cover?
  Travel insurance typically takes care of expenses you might incur due to flight cancellations and lost baggage. It may also cover the costs incurred as a result of medical issues, depending on the type of policy you take out. Look into the specifics of any travel insurance you purchase, and keep in mind that some credit cards offer travel insurance as a benefit that could cover your needs without requiring a separate travel insurance policy.
• Are hotel safes safe?
  Hotel safes are a backup place to store your money, documents and other valuables within your hotel room. On the whole, they tend to be safe. However, it’s still a good idea to do your research and select a hotel that hasn’t had complaints about stolen property, as well as having a backup plan for each item you plan to store in the safe in case it is compromised.