Currency Exchange UK: Common Scams and How Can You Avoid Them?

Currency exchange is an essential part of our lives, whether we are transferring or receiving money in another currency or travelling abroad. Despite the necessity of currency exchange, this market is full of risks and scams. Scammers exploit people’s needs using tactics like fake bureaus and manipulated rates to deceive individuals. In particular, travellers who are unaware of the local financial system, are in need of faster methods for currency exchange and have language barrier, become an easy target for these scams. The currency exchange bureau takes advantage of your vulnerability by hidden fees, fake currencies, and derisory exchange rates. This blog highlights some common scams in currency exchange in the UK so you can avoid falling into this trap and protect your money.

Common Scams in Currency Exchange UK

1. Sleight of Hand

This type of scam is very common not only in the currency exchange UK market but all over the world. Scammers use sleight-of-hand tricks to deceive you while counting and take away your money without getting noticed. Such hand tricks involve distractions and quick hand movements. To avoid such tricks, it is important to closely observe their hand movements and count your money before leaving the counter.

2. Shortchange Scams

Another commonly experienced scam is shortchanging, in which exchange operators distract you during the transaction and count less money than the settled amount. This is often done by tricks like acting confused while counting or folding one corner of the note to count those notes twice. The only way to catch shortchanging is by counting money yourself and making sure you recount each note before agreeing to the transaction.

3. Counterfeit Currency

If you choose unlicensed or unofficial street vendors with attractive exchange rates for your currency exchange in the UK, there is a high chance of you getting trapped in a fake currency scam. Counterfeit currency scam involves exchanging your money with fake or counterfeit currency, and the majority of people, especially tourists, fail to spot a difference. The best tip to avoid fake currency scams is to choose official vendors and bureaus for currency exchange in the UK.

4. Derisory or Unrealistic Exchange Rates

Be aware of the exchange booths and bureaus advertising unrealistically better rates, which come with hefty hidden fees. These fake rates are only to attract people, but once you get your money exchanged from them, you’ll realise their rates are significantly worse. One way to deal with such scammers is to exchange currency only in an official and reputable place. Secondly, it is essential to avoid temptation and only get a small quantity of currency exchanged to limit the risk of loss.

5. Rigged Calculators or Tampered Machines

Another common scam is that some currency exchange vendors use rigged or tampered counting machines, which are pre-programmed to undercount the currency. In this way, without even noticing, you get less money than the actual amount. To avoid this, always recount the exchanged amount and never rely on the vendor or machine. Moreover, always use your phone calculator to check the rate conversion.

How can you protect yourself from such scams in the currency exchange UK?

Currency exchange UK has seen a rise in such scams and fraudulent activities in recent years, making it further challenging to avoid falling into the pitfall. Here are some simple tips to dodge such scams of currency exchange in the UK.

Always research current currency exchange rates before going to the bureaus for exchange.
Choose reputable and licenced exchange services, banks, bureaus or ATMs.
Before finalising the deal, ask for an upfront fee to avoid commissions or transaction costs and hidden fees eat up your money.
Never rely on the staff or the counting machines. Always count your money twice before leaving the counter.
Use online platforms for larger transactions rather than currency exchange bureaus.
Always check the serial numbers and watermarks on the notes. You can also use a counterfeit detector pen to verify whether the notes are real or not.
To avoid taxi scams, try to keep change with you.

Follow these tips, stay vigilant, and protect yourself from these common currency exchange scams. Don’t let these vendors exploit you. Always plan ahead, take your time, cross-check everything, and choose the best method for your currency exchange in the UK.