The money exchange scam hides behind a great-looking rate. A kiosk advertises numbers better than the bank, then quietly takes its cut another way — a hidden commission, a miscalculated total, sleight-of-hand short-counting, or torn and withdrawn notes slipped into your cash. The defense costs nothing: know the real rate, count every note before you walk away, and favor official counters and bank ATMs.
How the Money Exchange Scam Works
The headline rate on the board pulls you in, but it's rarely what you actually get. Some kiosks apply a steep "commission" that's only mentioned after the deal, or advertise a great rate that applies only to very large sums. Others rely on the counting: a fast, confusing hand-back, a total that's quietly short, or a distraction mid-count so you don't notice. And some slip in notes you can't use — torn bills, old or demonetized currency, or outright counterfeits — betting you won't check before you leave. By the time you've walked off and recounted, the window to complain has closed.
Where You'll Encounter It
At exchange kiosks in tourist zones worldwide:
- Phuket and Thailand: independent kiosks along the tourist strips, where rates and counting vary widely.
- Bali and tourist areas everywhere: back-street and "no commission" money changers are a classic spot for short-counting and bad rates.
The Red Flags
- A posted rate noticeably better than the banks or the market rate.
- A "commission" or condition that only surfaces once you're committed.
- A rushed, folded, or distracted hand-back of your cash.
- Tucked-away kiosks down side streets rather than official counters.
How to Avoid It
Check the day's real exchange rate before you change anything, so you'll recognize a bad deal. Use official bank exchange counters or well-known, reputable chains rather than back-street kiosks, and ask whether the rate includes commission before you hand over money. Count the cash in full, in front of the teller, before you leave the counter, and check each note for tears or validity. Better still, withdraw local currency from a bank ATM — covering the keypad — and pay by card where you can, which sidesteps cash exchange entirely.
What to Do if You're Short-Changed
If the amount is wrong, say so immediately and count it back at the counter — most honest mistakes are fixed on the spot, and a scammer will often relent when challenged. Once you've left, recourse is limited, so the counting matters most before you walk away. If you were handed counterfeit or unusable notes, report the kiosk to the local authorities or Tourist Police (in Thailand, the hotline is 1155); banks won't accept them, so flagging the kiosk helps others. Our guide on what to do after a scam covers the next steps.
See the full destination guides for every scam you'll meet on the ground, area by area.
Tourist scams in Phuket →