Credit card fraud causes headache for holidaymakers

According to a new study commissioned by First Choice, credit card fraud has turned into a £1 billion nightmare for British holidaymakers. More than five million adults are hit by credit card fraud each year while they are away and the average cost for each victim is around £235.

But 20 per cent of holidaymakers will lose up to £500 after their credit cards are taken – and a staggering eight per cent will be hit for £750.

That adds up to an annual cost in excess of £1.3 billion making it the biggest financial headache facing travellers, according to a study of 3,000 adults for First Choice Travel Shops and Holiday Hypermarkets.

Brits are also shelling out a staggering £15 million on their credit and debit cards while abroad paying on average an extra £5 in commission and charges.

More than seven per cent of adults who take foreign holidays each year – around three million – buy their currency with credit cards once they have reached their destination.

While a huge number still buy it at the airport on the day they travel, which is one of the most expensive places to purchase foreign currency.

More than 30 per cent of adults polled admitted they were ‘shocked’ to discover how much commission they had been charged.

As well as extortionate commission charges to contend with, around 20 per cent of the five million Brits targeted by crooks will become a fraud victim after their credit cards are stolen while 10 per cent will have their whole wallet taken.

More than one in 20 had credit card details taken from a suitcase while 13 per cent had the details lifted from travel documents.

Travellers have also been the victim of credit card fraud after having their card swiped by a shop assistant, via an online transaction, paying for a rental car or at their hotel reception.

For almost 700,000 annual travellers, the credit card rip off has also led to complete identity fraud.

More than a quarter – 27 per cent – of identity fraud that takes place on holiday is caused by crooks taking credit card details.

The First Choice survey also found another 30 per cent of identity fraud has been caused by travellers writing personal details on suitcase tags.

Brits are costing themselves more than £100 million every year by losing their wallets with an average of £59 being taken each time.

And holidaymakers who have their wallets stolen are losing even more. Around eight per cent of travellers have their wallet or purse stolen, losing £62 on average which adds up to a national figure of £199 million.

Add to credit card fraud the cost of lost and stolen wallets and purses each year and Brits are losing up to £1.6 billion travelling abroad.

Richard Turner, head of Foreign Exchange for First Choice, said: “These figures are shocking – but prove just how vulnerable we are when we have cash and credit cards on holiday.

“Travellers don’t seem to realise just how much they can save themselves by buying foreign exchange before they go abroad – or even better, buy travellers cheques. They are insured and are easily replaceable and can save on the worry and hassle of having your wallet or purse stolen.

“They have none of the hidden charges of credit/debit card use and can be used as cash worldwide.”