Hungary in general is a very safe country. However, petty crime in particular remains a concern, just like in any other country.
Watch your baggage and pockets on public transport. There is a danger of pickpockets. Passports, cash, and credit cards are favorite targets of thieves. Keep items that you do not store in your hotel safe or residence in a safe place, but be aware that pockets, purses and backpacks are especially vulnerable, even if they close with a zipper. There are also reported cases of people who got their baggage stolen while sleeping on the train, so watch out for that.
Generally, Hungary is rather quiet during the night compared to other European countries, and crime to tourists is limited to pickpocketing and eventual cheating on prices and bills and taxi fares.
Everyone is required to carry their passport and ID card. Not doing so can end you in trouble with the police. The police will be most pragmatic if a color copy of your passport is provided.
The police force is professional and well trained. However, one must have a good knowledge of Hungarian to ask them for assistance as most of the policemen hardly speak any English.
See the Budapest travel guide for more specific and valuable information about common street scams and tourist traps in Hungary.
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