Businesspeople, as well as individuals, rely on money transfers across different borders in the global market. Whether you transfer a few bucks to your loved ones, settle for some service providers, or import/export business, the idea looks seamless. But new generation transactions over the internet involve cross-border money transfer scams as well. Such scams can frustrate you since they can lead to massive losses if you are not keen. Knowing the security issues in online money transfers and how to safeguard ourselves will go a long way in helping us avoid fraud when moving money across borders.
In this article, we’ll examine common scams associated with international money transfers, provide tips on how to avoid them, and highlight how platforms like Peska are committed to keeping your transactions safe.
Common Scams in International Money Transfers
With the rise of online banking and digital payment platforms, scams have evolved. Below are some of the most common scams you might encounter during international money transfers:
1. Phishing Scams
Phishing scams are actual frauds where a person sends you an email, or a text message, and claims to be from a real company. Such messages contain links to the scam website which looks almost like the real site of any company or bank. If you allow your personal or financial details into the scammer’s system, they can feast on your accounts.
2. Overpayment Scams
In this con, a con artist could send you an above-average payment for a product or service and request a change back. The first payment may be presented as an actual transaction and may initially look like the money is being transferred, but then it bounces; besides, you are likely to be charged a fee for the refund as well.
3. Fake Job Offers or Lottery Winnings
Some fraudsters use the bait of a highly paid job opportunity or even a lottery prize, which is usually unrealistic. The twist is they are going to demand you to initially provide them some amount of money to ‘process’ your winnings or get you the job. But of course, once they get the cash from you, you won’t hear from them again.
4. Money Mule Scams
Money mule scams are crimes committed whereby the fraudster will convince someone to accept money into their bank account and then transfer the money to another account. In doing so, they assist them in money laundering and you find yourself on the wrong side of the law.
5. Advance Fee Scams
This type of scam involves fraudsters claiming that they will provide you with a loan or transfer money to your account if you pay an upfront charge which is fraudulent. Sadly, though, after you have transferred the international money transfers to the service provider, the service is never rendered and the con artist is gone.
Security Concerns with International Money Transfers
There are several security concerns to keep in mind when dealing with international money transfers:
1. Identity Theft
When making cross-border transmissions, the most notable danger is that of identity theft. It is much easier for a scammer to get your real information using your details from unchecked sites or fake firms to emulate you and steal from you. And they usually end up in unauthorized transactions and long-term adverse effects on your credit card balance.
2. Data Breaches
Companies in the online foreign exchange business can be vulnerable to cyber security threats. In a case where a platform is hacked, your identity as well as your financial data is vulnerable. But it is important to shop only on secure reliable sites that employ encryption and have sound policies to protect data.
3. Unauthorized Transactions
Other fraudsters intrude into your account through fraudulent emails or infected software and make purchases. If you are not actively tracking your account balances, you won’t realize it until much later.
4. Lack of Transparency
Some scammers can also fail to show you all the charges they are likely to take from you or provide their conversion and transfer charges at outrageous charges. It might be more expensive than you think it would be at the start.
Tips to Avoid Scams When Transferring Money Internationally
Here are some practical tips to help you stay safe while international money transfers:
- Use Trusted Platforms: When you transact in foreign currency, do so with accredited service providers like Peska. Such platforms provide reliable security for your transactions as well as for your personal information.
- Verify the Recipient: As a word of precaution, make sure that the recipient is genuine before sending any money. Be very careful entering the account details and don’t transfer money to persons you don’t know or have some concerns about.
- Beware of Phishing Scams: Do not respond to emails or text messages that tell you to click on links or download attachments from your bank or payment provider. Never open the link or the URL of the login page in a new tab via a third-party website header.
- Monitor Your Accounts: Be sure to constantly monitor any of your bank accounts from being charged without your consent. In case you observe something wrong, go to the bank and the provider you used in making the payments.
- Educate Yourself: Get to know the most current techniques employed by fraudsters and premiums. The more experience you have, the better you will realize and avoid them.
Conclusion
Transferring money internationally is a convenient and necessary part of modern life, but it comes with security risks. Scams targeting international money transfers can lead to significant financial losses if you’re not vigilant. By understanding the types of scams that exist and how they operate, you can take steps to protect yourself.
Peska offers a safe and secure platform for international money transfers, with robust security measures like encryption, two-factor authentication, and real-time transaction monitoring. Whether you’re sending money for personal or business reasons, Peska ensures that your transactions are protected from fraud, helping you avoid common scams and providing you with peace of mind.
