Expect this scam while walking along the crowded streets of your destination country. Public places are prime locations for scammers who wish to employ the "Dropped Wallet" Travel Scam. Airports or any other place that uses security cameras may be employed during this scam.
Notice that someone's wallet falls out of a pocket, purse or bag.
Realize that if you pick up the wallet in an attempt to return it to its owner you're falling for the scam.
Watch as the owner whips around and catches you with the wallet in your hand. Be accused of trying to steal the wallet. The scammer will take advantage of the language barrier to claim that he doesn't understand you. Note his insistence that you tried to steal his wallet.
Notice that the scammer's accomplice approaches you. The accomplice will hear your conversation, speak both languages and seem to act as a mediator between you and the scammer by translating.
Listen to the scammer's demands. The scammer will either claim that you tried to steal the wallet or that a portion of the wallet's money is missing. He will then demand that you return the missing amount or insist that you pay him a specified amount instead of having to answer to the police. The scammer will likely point to security cameras to remind you that you have been caught on camera, if the incident takes place in a location with cameras.
Ignore dropped items or you may end up having to pay the scammer to avoid police involvement.