For many of us, holiday mode begins the moment we step onto the flight. We tuck our bags into the overhead compartment, settle comfortably into our seats, and allow ourselves to relax, trusting that everything we need is safely stowed away above us.
What we rarely consider, however, is that our long-awaited getaway could be disrupted before we even reach our destination. Unbeknownst to many travellers, personal belongings, particularly bank cards, can be targeted during the journey itself.
Most travellers rely heavily on their bank cards when abroad, reassured by the security features that come with them. Yet, these safeguards may offer little comfort if the card is taken without the owner’s knowledge and misused before any loss is detected.
These scenarios are not merely hypothetical. They reflect real cases that have come before the Financial Markets Ombudsman Service (FMOS). Through these cases, a pattern emerges, one that reveals how such thefts are carried out and raises an important question: when something goes wrong far from home, who ultimately bears the responsibility?
FMOS Case: The Overhead Compartment Theft
We often assume our belongings are safe once they are inside the aircraft cabin. Unfortunately, international syndicates and opportunistic thieves take advantage of this false sense of security and exploit the unsuspecting cardholders.
In a notable case handled by FMOS, a traveller named David (not his real name) flew to Vietnam and placed his carry-on bag in the overhead compartment.
Upon arrival, David noticed that his bag had been tampered with and that an envelope of cash was missing. Believing the cash was the only item stolen, he didn’t inspect his wallet carefully.
When David checked his online statement several days later, he discovered his credit card had also been stolen and used for three transactions totalling RM25,000.
Thieves often target overhead compartments during long-haul flights or when passengers are asleep, moving through the aisles under the pretence of retrieving their own bags.
They quietly remove wallets or cards before placing the wallet back, so victims only realise the theft much later, sometimes after they have already left the airport.
Why "PIN & Pay" May Fail Outside Malaysia
Many Malaysian cardholders take comfort in the belief that their bank cards are secure. After all, even if a card is lost or stolen, how could anyone use it without knowing the six-digit PIN? Within Malaysia, the “PIN & Pay” system has reinforced this sense of security, as most point-of-sale transactions require PIN verification.
But that reassurance can quickly unravel once travellers step beyond Malaysia’s borders.
In David’s case, he learned this the hard way during a trip abroad. Like many others, he relied on his bank card for convenience, assuming its security features would protect him. Unbeknownst to him, however, his card had been stolen, and in a matter of hours, the thief carried out three large transactions by simply presenting the physical card at payment terminals.
What made this possible was not sophistication, but a gap in global payment systems. The terminals used in Vietnam did not support six-digit PIN authentication. Instead, they automatically fell back on an older method: signature verification. With nothing more than a forged signature, the transactions were approved.
In some cases, the safeguards were even weaker. Certain automated kiosks allowed transactions to proceed without any secondary verification at all. As long as the physical card was present, the system processed the payments.
For David, the discovery came too late. By the time he realised his card was missing, a significant portion of his credit limit had already been wiped out. His experience highlights a troubling reality: while Malaysia’s payment systems have evolved, not every country operates at the same standard. When a stolen card crosses borders, so too does the protection we assume it carries, sometimes leaving travellers far more exposed than they realise.
The Danger of Not Being Reachable
Like many travellers, David chose convenience over connectivity. To avoid extra charges, he did not activate international roaming during his trip, and he rarely answered unfamiliar international numbers. It seemed like a minor decision at the time, hardly worth a second thought.
But when the fraud began, that silence became a critical vulnerability. As unusual transactions started appearing on his card, the bank’s systems reacted, and multiple SMS alerts were sent in real time, each one meant to warn David and prompt immediate action. At the same time, automated calls were triggered, attempting to reach him to verify whether the transactions were genuine.
David received none of them.
Unaware of what was unfolding, he continued with his trip. Meanwhile, the thief continued using his card. By the time the bank’s system escalated the case, flagged the activity as suspicious, and eventually blocked the card, the damage had already been done. Nearly RM25,000 had been charged.
It was only later, when David finally checked his account, that the full extent of the loss became clear. The delay in detecting and reporting the theft had inadvertently given the fraudster a wider window of opportunity to carry out multiple transactions unchecked.
His experience reveals a less obvious but equally important risk of travelling abroad: being unreachable at the very moment it matters most.
FMOS Ruling: Who Bears the Liability?
When David disputed the transactions, his bank rejected the claim on the basis that the genuine physical card had been used and that he failed to properly safeguard it.
David then escalated the dispute to FMOS, arguing that the spending pattern was highly unusual and the bank should have blocked the transactions earlier.
The Findings and Outcome
Under standard Credit Card Agreements, cardholders are legally responsible for exercising reasonable care in safeguarding their physical cards and reporting any loss immediately.
FMOS found that leaving a wallet in an overhead compartment created a foreseeable risk of theft. In addition, because David noticed his bag had been tampered with upon arrival but failed to immediately verify that his credit card was still in his possession, the risk exposure became greater.
As a result, FMOS upheld the bank's decision: David was held fully liable for the RM25,000. However, as part of a fair resolution, the bank was directed to waive all related interest and late payment charges arising from the disputed transactions.
As this case demonstrates, consumers may still bear liability if reasonable safeguards are not taken.
When travelling abroad, treating your credit card with the same level of caution as your passport and cash may be your best defence against international fraud.
Important Tips for Travellers
To avoid turning your holiday into a financial nightmare, follow these practical safeguards from FMOS:
Keep your valuables close to you: Never place your passport, cash, or credit/debit cards in the overhead compartment. Keep them on you, in a jacket pocket, or in a small cross-body bag worn under your clothing during the flight. Ensure all compartments are tightly zipped.
Turn your bag upside down: Placing your bag face down in the overhead compartment prevents thieves from easily accessing zippers and pockets.
Place your bag across the aisle: Most passengers put their bag directly above their own seat, but placing it across the aisle gives you a clearer sight and makes suspicious movement easier to notice.
Conduct an immediate check: If you notice that your bag appears to have been moved or tampered with during a flight, carefully check every compartment of your bag and wallet. Should you discover that anything is missing, notify a flight attendant immediately so the matter can be promptly reported and addressed.
Stay connected: Whenever possible, keep your mobile line active via international roaming or a reliable travel eSIM. Ensure banking app notifications are enabled so you can quickly detect unauthorised transaction alerts.
Report lost cards immediately: If your card goes missing, do not wait until you return home. Block the card immediately in your banking app or by contacting your bank’s international hotline.
FMOS is a fair and free platform that helps consumers and investors resolve disputes involving direct financial losses in the financial and capital markets.
Resolving Disputes, Maintaining Trust
File Your Dispute: complaint.fmos.org.my
Official Website: www.fmos.org.my
General Line: +603-2272 2811
Address: Level 14, Main Block, Menara Takaful Malaysia,
No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur.
Operating hours: 8:30 am – 5:30 pm, Monday–Friday
This content is provided by Financial Markets Ombudsman Service (FMOS)
The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
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