$1bn fraud abroad
Holiday money mishaps cost each Australian traveller close to $900 a year, writes Sophie Elsworth
HOLIDAY misadventures are costing Australian travellers each about $880 every year, with stolen money or possessions, card fraud or missing a flight hitting hard, new data has revealed.
Exclusive research from the Commonwealth Bank has shown Australians lose $1 billion a year by being underprepared for holiday mishaps, with about 30 per cent of travellers leaving the country without travel insurance.
About 60 per cent have experienced a disaster while on holiday and had money stolen from them and 34 per cent acknowledge that money mishaps end up causing them significant stress.
Unexpected changes to travel plans (27 per cent) also hit respondents hard.
CBA’s general manager of everyday banking and payments, Michael Baumann said theft of cash was one of the biggest financial kicks travellers took while away.
“Over half of Australians experience money misadventure by having money stolen from them,’’ he said.
“Gen Ys also have the highest likelihood of losing their possessions (46 per cent) and it seems like they are not as used to travelling overseas and having these experiences.”
The findings revealed travellers prefer to be armed with plastic instead of cash, but Baumann urges travellers to be organised and ensure they have a mixture of money sources before leaving the country.
“You should take some foreign cash, a prepaid travel money card where you can lock in the exchange rate and also a credit and/or debit card,’’ he said. “You shouldn’t put it all in the same wallet; you should store it in different places.” CBA allows customers to use the “lock and limit” feature on their cards to block international instore or online payments, which can be changed online in an instant if the card needs to be used. For customers who do lose their cards, it’s advised they contact their bank immediately. Picture: TRICIA WATKINSON
Rising Tide Financial Services’ managing director Chris Browne urged all travellers to sign up to travel insurance and plan carefully the way they will access money while abroad.
“Don’t leave all your cash in the one place when you are travelling – leave some with a travel companion, some in the hotel safe and carry some yourself in a safe spot.”
He also said to have a “healthy level of cynicism” when being told currency you are getting has no commission charges on it. Browne suggested travellers ask questions about the exchange rates and any fees involved and only use cards for bigger purchases, while using cash for day-to-day transactions.