How do tourists get cheated?

I think I know what you're asking. Every place has it's share of local scams. You want to know specifically what to look out for in Thailand. Here's a couple of things: Taxis- when you take a taxi it should be meter. If the driver tries to negotiate a price with you before hand, you're going get ripped off. Counterfeit items- Thailand has masters of counterfeiting. You can find everything from fake name brand clothes and gems, to college degrees and passports. If you're looking for these items fine, but if you're looking for the real deal, be careful. Backpacks and fanny packs- Be careful in crowded markets. Sometimes thieves will use razors to cut back packs and liberate them of their contents. Women- Thailand has some of the most convincing 'ladyboys' in the world. If you're looking to spend the evening with a woman, look closely. Unless you're into that sort of thing, then God bless and be safe. Beyond the normal things you have to lookout for everywhere, and stuff of urban legends (getting drugged and robbed at some private card game), Thailand is a pretty safe place and Thai people are really lovely folks.

I used to think you were safe as long as you had a Thai friend go along with you. It turns out this is wrong. It seems that the Thai is then more likely to be taken advantage of financially because he/she has a rich Farang friend who can pay any amount of money, no matter how ridiculuous. My least favourite scam that I was the victim of: I thought I had figured out how to avoid the surprise of a totally padded rip-off bill being presented to me after drinking in a bar. My modus operandi was to inquire the price of each drink before ordering, and then I would pay as I go. Even more foolishly, I tipped for every drink and bought drinks for the managers, et al (paying in full each time for each drink with tip). As I said gracious good-byes and thank-yous upon exiting, I was grabbed and hauled back inside, where I was told that I could not leave without paying my bill. Every worker and recipient of tips and freebies then lied to my face that I had not paid for anything yet. I had to pay twice for every drink or be arrested (my tipsy Farang word to the corrupt policeman against the word of twelve straight-faced lying Thais). That was a fun lesson.

By not knowing what they are paying for and how much they should be paying for.

I have been to 30+ different countries and 30+ states in the USA and I am not quite sure what you mean.

by cheaters

People identify themselves as TAT (Tourist Authority of Thailand) and take you to Travel agencies promising a good tour or a good rate and in the end you probably could have got cheaper walking in to a hotel off the street. Especially if its in another area, they will show you a nice hotel and when you get there you find out those nice pictures must have been taken in 1978 because the room is pretty ratty.

Mostly, I would say by not being familiar with the way things are done - - and prices. It can happen with Thai and Thai also - If you do not know what things cost - then you might be vulnerable especially in tourist areas, but anywhere really - - But - you are a shopper - - shop around - - you know the game - - If you buy a pair of pants in JC Penney for $30 - and two days later they have it on sale for $20 - do you feel cheated? - and if you knew of a discount store in your area, they might have the same pants for $12 - - who knows? Basic rule is don't pay more than it is worth to you..

Same everywhere in the world. Profit maximization is the ultimate business driver, so if tourists do not know the prevailing market price for goods and services, they'll be charged more. In some places in Thailand (e.g., local song-thaew taxis in Pattaya and Patong), the cheating has been systemized so that foreigners will pay more than Thais for the same service.

In Thailand ? by overcharging, they think that farang (westerners) are rich and expect to pay double. Its a learning curve. When I first went I used tuk tuks to get around until I found the minibuses do the same trip for 1/10 of the price - I got a map of the city from the tourist office with the bus number on the street roads - it was a lot of fun and max price 10 baht