Hola Reader,
As promised, I'm back again with the next email in my Money In Mexico series and this week is all about scams.
People worry about safety in Mexico and while it is a safe place for travellers to visit, if there is anything you're likely to be targeted for as a visitor, it's a scam.
So let's go over some common scams you may come across and how to avoid them.
Common Taxi Scams
Taxi scams are common the world over, so this is by no means exclusive to Mexico but there are a few things that make Mexico different.
It's almost always easier and safer to use Uber or DiDi (a very popular Uber alternative) in Mexico but if you're exploring somewhere that doesn't offer that service (like Oaxaca City) you'll need to take taxis.
The most common taxi scams in Mexico would be fake taxis, fare inflation, and credit card scams, so let's take it one at a time.
Fake Taxis are normally very easy to spot. They often look like really rundown cars you wouldn't want to get into anyways.
Imagine what a cartoon of a fake taxi might look like, smoke coming out of it, beat up doors, a fake sign, that's not far from reality in some cases.
At other times, they're harder to spot so here's what you need to know. All official taxis in Mexico are part of a taxi union.
The drivers display a license, wear a uniform, the vehicles are almost always a specific colour scheme and include the taxi association name, phone number, and taxi number.
You can see an example of a taxi uniform here.
In most towns and cities there are designated taxi stands known as sitios that are easy to spot and sign posted. Only real taxis can stop here so that's your best bet. You can also order taxis via WhatsApp, just grab the number off any taxi and chat directly with the dispatch.
In some towns like Puerto Escondido, there are no sitios but you can ask a local restaurant or shop to order you a taxi to be on the safe side.
Fare Inflation is another really common taxi scam. This is when a taxi driver tries to charge you two or three times what the fare should be.
Many towns and cities have metered taxis which means as soon as you get in the driver should start the taximeter and that's the price you pay.
In other places you'll need to negotiate and agree a price before getting into the car. In towns like Huatulco they have a tarifa which is an official rate card for how much taxis should charge for rides to different areas.
Ask your accommodation if your town uses one of these. Even if they don't, it's a good idea to ask how much it should cost to get from A to B so you have a point of reference.
Credit Card scams are the last taxi scam we're going to talk about today. There are two ways these usually happen.
- A card skimmer is used to take your card into and pin.
- The amount entered into the machine is not correct.
Whenever possible, I always recommend paying for taxis in cash using Mexican Pesos. This is the easiest way to avoid any credit card funny business.
In the event that's not possible, look at the machine closely before inserting your card. Double check that the amount is correct including the currency. Put the card in yourself instead of handing it to the driver and then check your activity online as soon as possible.
The quicker you catch fraudulent activity, the more likely it is that your bank will help you. That being said, if you're using chip and pin, sometimes banks are reluctant to intervene since you technically authorized the charge.
So again, where possible, use local cash for taxis.
"Hey! It's me from the resort!"
Familiarity scams are most common in popular English-speaking tourist destinations like the Riviera Maya, Cabo, and Puerto Vallarta.
You'll be walking through town or leaving a shop when a very friendly, English-speaking local approaches you with a big smile and says "Hey! It's me from the resort!" and then you feel awkward about not recognizing them so you smile back and start chatting.
Breaking News: You don't recognize them because you genuinely don't recognize them.
This intro can lead to pushy sales tactics for tours and products or distraction thefts where you're kept chatting and don't notice your watch or cash have been taken.
Distraction scams can happen anywhere and rely on you being caught off guard. This could mean faking help like pretending you dropped something, bumping into you, asking for help, etc.
The best thing to do is to smile, say gracias and keep walking.
Note: It is very rare for these types of scammers to be aggressive or follow you. If you are firm about walking about they will typically just leave and look for a new mark.
Payment, Change & Tax Scams
For the last couple of weeks I've talked a lot about why you don't want to use USD cash in Mexico, so if you've been following along, you're already one step ahead.
Aside from the disadvantages of trying to spend USD, there are couple of other really simple payment related scams that are easy to avoid.
Overcharging, adding tips, and adding tax are easy scams to attempt.
First of all, it's important to know that tax is included in Mexico. Menu prices, price tags, taxi fares, the tax is included in the price.
The main exception to this would be hotel prices which usually have a room price plus tax.
When you get a receipt in Mexico you'll usually see the tax separated out at the bottom and marked as "I.V.A." which means impuesto al valor agregado or Value Added Tax in English.
This is the Mexican VAT sales tax and is almost always 16%. This is normal.
Because the tax is included in the price it's easy to anticipate how much a bill will come to, and at restaurants, you should be provided with a receipt before paying.
If the amount you're asked to pay is not what you're expecting then question it.
Propina at the bottom of a bill is the tip or gratuity. Awkwardly, in Mexico if you're paying by card, the person taking the payment has to add the tip so they will ask you what you want to tip.
For this reason I almost always tip in cash. It's less awkward and I'm in control.
If you add a tip, be sure to double check that it's the right amount before paying.
Giving incorrect change is another fairly common scam. This scam relies on people not feeling comfortable with the currency, especially the coins.
Always count your change before walking away and where possible, use small bills. The largest bill is $500 pesos and paying for something small with a bill this size can cause issues.
The person you're paying may not have enough change to give you and there's more opportunity to short change you.
Fake Police (& Real Police)
Fake police are most common in tourist heavy areas like the Riviera Maya. These scams usually involve intimidation and play off of fear.
Someone dressed as a police officer will stop your car or approach you and accuse you of doing something wrong. They will then fine you and ask for cash.
The best thing to do in this situation is immediately ask for and make note of the officer's badge number, then ask to go to the police station to pay the fine.
That's where fines are paid anyways.
If you really did something wrong you'll need to go to the police station and if this is a fake police officer, they won't want to go there. When you ask to go to the police station a fake officer will normally give up and walk away.
Real Police are also sometimes involved in scams and this usually involves fines that are off the books. If you follow the same steps above you'll usually have the same results.
I go into more detail about being stopped by the police (real and fake) here if you'd like to read more.
That's your anti-scam masterclass! Are you surprised by any of these or have you experienced these firsthand? Hit reply and let me know!
Also, if there's anything else you'd like me to talk about, hit reply and let me know.
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Hasta luego,
-Ashlea
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