Whether traveling for work, taking a much-needed vacation or permanently relocating, you should know how to protect your financial transactions abroad. A little preparation can save you a lot of time and money. How do you keep your money safe while visiting a foreign country? Explore ways to protect transactions below.

How Traveling to a Foreign Country Puts Your Money at Risk

Scammers, cybercriminals and con artists can spot a vulnerable tourist a mile away. You might encounter a taxi driver with a “broken” meter, a food truck vendor that insists they gave you the correct change or a “friendly” local offering to help with the ATM. In each of these scenarios, you’ll may lose your hard-earned money. 

Alternatively, you fall victim to more subtle plots involving fake public Wi-Fi networks that enable man-in-the-middle attacks or malicious QR codes that steal your payment details. Foreign bad actors take advantage of the fact that you’re in an unfamiliar place. It’s easy for them to steal from you when you don’t know what’s normal, can’t speak the local language and have no home Wi-Fi to rely on. 

It doesn’t help that these criminals often work together. According to the United States Embassy & Consulates in France, professional pickpockets often work in groups to coordinate thefts. It’s rare for a victim to know they’ve been targeted until they discover their wallet missing. How do you keep that from happening to you?

With 76% of the people living in the United States having traveled to at least one other country, you’ve likely ventured abroad before. However, just because you’ve done it before without being scammed or stolen doesn’t mean you’ll be as lucky next time. Theft tactics are continuously evolving. 

4 Tips for Safeguarding Your Financial Transactions Abroad

Here are four practical methods for safeguarding physical and digital financial transactions while visiting or living in a foreign country. 

1. Boost Your Bank Account’s Defenses  

Your password is your bank account’s first line of defense, so it should be strong. Use both letters and symbols to strengthen it. Also, never use recognizable strings of numbers or letters. The bots behind brute force attacks can recognize dates, addresses, names and words. 

2. Use Travel-Friendly Payment Methods 

Credit and prepaid cards are better than debit because they don’t pull directly from your bank account. Choose an internationally recognized card with robust fraud protection services if you can. This approach gives you a financial safety net. 

Which payment method should you use? Tap-to-pay is secure because it creates a nonreplicable, transaction-specific code that only credit card processing networks can read. It also encrypts your card details using tokenization and protects you from skimmers. 

3. Monitor Your Bank Statements and Alerts 

Monitor your bank statements regularly for unauthorized activity. Better yet, enable real-time account alerts on your mobile device so you receive an alert whenever money is pulled out of your account. This way, you can turn off your card or notify your bank immediately. 

4. Stay Away From Public Wi-Fi Networks 

A secure, encrypted connection is key for online banking. Dave Hatter, a cybersecurity consultant, recommends using cellular and virtual private networks. He says he would “never, ever do any sort of banking” using a public or free Wi-Fi network. 

How to Carry and Exchange Currency Safely While Traveling 

Whether traveling abroad for work or pleasure, you likely won’t be confined to your hotel, hostel or Airbnb the entire time. Keep security in mind when you’re out and about since carrying and exchanging currency in a foreign country is risky. Consider exchanging money before you go. Most banks provide the option. 

On top of avoiding counterfeits and scams, you might save money. Airport exchanges commonly charge around 14% more than the current International Monetary Fund exchange rate. Some exceed 17% or tack on additional fees. In this case, it pays to be prepared. 

Once you have your money, store it someplace safe. Instead of a purse or wallet, use an antitheft crossbody bag with lockable zippers, hidden compartments and radiofrequency identification blocking. Wear it under your clothes for extra security. Only carry as much as you need when going out. Leave the rest in a personal safe if you can. 

Remember, credit cards — especially prepaid cards or those with tap-to-pay functionality — are typically safer than other payment methods. However, some businesses may only accept physical currency. Also, you may be limited to virtual transactions if you use an online bank. Take these variables into consideration when strategizing. 

Securing Your Financial Transactions in a Foreign Country

The last person you want to call you while you’re traveling is a professional from your bank’s fraud department. Luckily, there are ways to prevent that. Although there’s no one-size-fits-all approach for protecting your financial transactions while traveling abroad, you should follow these best practices and tips whenever possible. They may just save you a lot of money.