I never lock my bag because I have seen demonstrations of how easy it is to get into luggage that is locked. I figure a lock would just be a signal that there is probably something valuable in there. I never carry "real" jewelry other than what I am wearing and I keep that to a minimum. I keep passport, credit cards, and currency on my person at all times, generally inside my clothing except for a small amount of currency that I will need to access. I also travel with a small camera that will fit inside my pocket or cross-body bag.
The only issue I have had was in Lisbon at the airport when I gave my purse to my traveling companion to hold while I wrestled the bags from the conveyer belt. It was so crowded that I worried someone would pick my purse in the crowd. She got distracted, laid my purse on top of the suitcase while she dug in her purse for something, and someone just walked away with it.
It was one of those rare instances where I had stuck my little bag with passport, credit cards, and currency in my purse rather than inside my clothes. We had almost missed our flight due to delays in Paris at security and I crammed it inside my purse - we had to rush to the gate and, because I was in an exit row, as soon as I sat down I was instructed to put my purse in the overhead. And then I didn't think about it again.
Fortunately I knew to have a copy of all my documentation including front and back of credit cards in another bag. And I have great praise for the American consulate who quickly and efficiently got me a temporary passport the same day. They even facilitated a phone call so that hubby could wire money to me. The police were also very efficient - right there in the airport they made the phone calls to my credit card company so that I could cancel the account and arrange for a replacement card.
That story has nothing to do with locks on bags, but is to emphasize the point that anyone can walk away with a bag in baggage claim, in which case a lock is irrelevant.
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