Common sense is the best thing you can take on holiday, but it also pays to have insurance.

Fake friends, unexpected wake up calls and public wi-fi are just some of the ways you can be caught out by scammers overseas, Southern Cross Travel Insurance warns.

New Zealand's biggest online travel insurer gets to see the biggest tourist traps because those caught out by scam artists overseas claim their losses when they get back home.

Unless people are extremely foolish, those losses are likely to be covered by their insurance, though that is generally a small consolation for a ruined holiday.

Southern Cross Travel Insurance covers the travel plans of nearly 300,000 Kiwis each year, so there aren't many scammer tricks chief executive Craig Morrison hasn't heard of.

"Unfortunately scammers exist wherever you are in the world," Morrison says.

"The best thing you can take with you on holiday is your common sense. When that fails is when it pays to have insurance.

"These are only a handful of the pitfalls shady scammers try on with tourists," Morrison says.

"A good thing to remember is to keep the common sense you'd use at home with you on holiday. If it sounds too good to be true, it probably is."

Tourists must also remember that travel insurance is there to pay for losses resulting from "unexpected" events.

Falling victim to a scam is often unexpected, but if travellers do things that are extremely foolish, their travel insurer may end up declining a claim.

It also pays to research the country you're going to and any problems other tourists have faced there recently.

Pickpockets

Visitors to the Louvre are a target for light-fingered thieves. Photo: Philippe Wojazer/Reuters

These are a plague in some big cities. Morrison says you may be enjoying the sights when a friendly local points out that you have bird poo on your shoulder. They even help clean off the mess - while helping themselves to your wallet.

The back pocket is not the place for a wallet. Zip-up pockets, slash-proof backpacks, and hidden pouches are all precautions that can make you a tough target for pickpockets.

An expensive dinner

Dining out is safer than ordering in. Photo: 123rf.com

Morrison warns that no matter how hungry, tired or jet-lagged you are, never order food from a takeaway menu slipped under your door. You'll probably never see any food, worse still the person on the other line now has your credit card details and can remove a large amount of money from your account. A better idea is to dine in at local restaurants or order room service.

Open wi-fi

Handy service, but is someone harvesting your passwords while you use that free wi-fi? Photo: 123rf.com

It doesn't take a genius to set up a wi-fi hub. While you're browsing the net, someone can access your personal information and passwords. Be careful about connecting to generic networks with names like "free wi-fi", or "free coffee shop wi-fi". It you're wanting secure wi-fi find a server that requires a password.

Fake friends

Friendly locals are a joy to travellers, but telling the goodies from the baddies isn't always easy. Photo: 123rf.com

Beware of lovely locals outside attractions offering rosary beads, sticks of rosemary, friendship bracelets and rings. They're not complimentary, and these friendly locals will soon be demanding money and making a scene so you'll pay them to go away.

Front desk diligence

Is that really reception calling? Photo: 123rf.com

Preying on the tired is particularly immoral, says Morrison. This scam happens late at night, or early in the morning, with "reception" apologising for the late call and asking you to verify your credit card details. Unwittingly you read them out and go back to sleep.

Imposter police

These are real Vietnamese police. Beware demands for "instant" fines. Photo: 123rf.com

Not all policemen around the world are what they seem, says Morrison.

"If you're ever stopped by someone in an official looking uniform who tells you you've broken the law and must pay an instant fine, see this for what it is – a bribe. Keep your temper, try to walk away or insist on settling things at the station."

The waiting game

Vibrant markets are interesting places, but keep your wits about you. Photo: 123rf.com

This is common in countries with strong cash economies, Morrison says.

"You'll buy something in cash and the cashier slowly, often painfully, counts your change. Impatiently you grab your change and walk off only to find the cashier has pocketed some."

Corrupt cabbies

New Zealand cabbies are generally trustworthy. Those high standards aren't always matched overseas. 13rf.com

"This scam is not new and is ever-evolving with many travellers having lost their luggage to shady taxi drivers the minute they start their holiday", says Morrison.

A few tips include keeping your baggage in sight at all times or watching it being loaded into the car, negotiating a fare before you get going and knowing where your end destination is.