There are a number of instances where people have reported credit card fraud. The news is always filled with reports of thieves using newer technologies to rob people via their credit cards. But it has to be realized that the benefits of carrying a credit card while travelling far outweighs the problems that one might face if one were to carry cash around while travelling.
Carrying cash is always a hassle while travelling. You are liable to be robbed in a foreign country where you wouldn`t know whom to complain to or where to go if something were to open. This is the primary concern while travelling given that one can never be sure about the law and order situation in a foreign country
The first advantage, of carrying a credit card while travelling, is that you will not end up with a bulky pocket. A fat pocket will obviously attract attention to you and this is favorable in a foreign country. Besides, it can also get very difficult to sort out cash and count it every time you make a transaction. Even travelers checks are good but they need to be bought separately just for a trip where as your credit card is already with you.
The next advantage is that you get to maintain records. Keeping records of your transactions overseas can be a laborious process. You might end up spending your nights in the hotel making accounts of the all the expenditures instead of enjoying the beach on a moonlit night. And it happens way too often when you are out with friends that each person will claim that he or she has spent a certain amount while there is no documentation for the same. Using a single credit card to make all purchases and then sorting out the share of each person will help you have an even more enjoyable trip.
Another obvious advantage is that you do not need to worry about the exchange rate. Even if you already exchange your cash at the airport, it will get very cumbersome to handle a foreign currency without having any time to sit and look at it. But with a credit card, you can directly make transactions in the local currency while getting a better exchange rate from your bank at the same time.