Using mobile payment apps on your smartphone for money transfer and receiving money can be a very convenient option. This allows expatriates working abroad to securely and affordably support their loved ones back home. It also provides family members with a convenient way to send students studying abroad the funds they need to pay for their studies. Furthermore, international money transfers offer tourists a simple way to ensure they have cash upon arrival at their destination, no matter where they travel. You may already be familiar with mobile payment apps that allow you to transfer or receive money using your smartphone (or the internet), such as PayPal, TangoPay, Venmo, or Cash App. Due to their popularity, scammers may try to use these apps to steal your money.
What are Money Transfer Scams?
How can money be stolen and fraud committed through money transfers? Through financial transaction fraud or cybercrime. Criminals attempt to trick others into transferring money to them, which can cause significant losses to both individuals and businesses. Sometimes, these thieves manage to transfer funds from legitimate accounts to fraudulent ones. Below are some of the most common types of money transfer fraud.
Family Emergency Scams
In these scams, the con artist impersonates a close friend, a family member, or a government official, such as a lawyer or police officer, acting on behalf of a relative. They claim that someone close to the victim has been arrested, kidnapped, injured, or is stranded abroad, and that they urgently need help.
Exploiting System Weaknesses
If a criminal has computer skills, they can exploit vulnerabilities in the banking system and, if successful, gain full access to transfer funds to accounts of their choosing. These vulnerabilities can stem from outdated software, weak passwords, or inadequate security procedures.
Social Engineering
Instead of hacking into your bank’s system or sending you emails, criminals use psychological tactics to exploit human behaviour. To understand this better, consider the following example:
To obtain the necessary information, a criminal will call you, posing as a trusted bank employee. They will typically emphasise the seriousness of the situation and convince you of its utmost importance.
To commit wire transfer fraud, they might also impersonate a company executive and demand that you transfer funds to a new account.
Tips for understanding the money transfer scams?
Scammers can trick you into transferring money using a mobile payment app. They know that once the transfer is made, it will be challenging to get the money back. They might impersonate loved ones in need and ask for emergency funds. Others may claim you’ve won a prize or the lottery, but then demand a fee to receive it.
If you use a mobile money transfer app, please keep the following guidelines in mind:
- Never send money to claim a prize or contest winnings.
- If you receive a call, do not provide your account information.
- Use a PIN or multi-factor authentication to protect your account, and be sure to verify the recipient’s information before sending the payment.
- If someone you know unexpectedly asks you for money, contact them to verify it’s them and not a hacker who has accessed their bank account.
How to avoid Money Transfer Scams?
To prevent fraud in money transfers, it’s usually enough to take your time and verify the information before making a transaction. Always check who you are sending money to and for what purpose. Whenever possible, confirm information received by email with a phone call and vice versa.
Always use reliable communication channels, such as known phone numbers and email addresses, to contact family and close friends directly. If you receive a call from an unknown number claiming to be someone you know, be sure to contact that person through another means before transferring any money. Finally, you can protect yourself from scammers by using a trustworthy money transfer service like TangoPay.
The best way to transfer money without any scams.
While money transfer fraud is a serious problem, you can protect your money by understanding how it works and using the right tools. Knowing the different types of fraud and implementing strong security measures will help protect you and your business from these threats. Choose a safer option, such as TangoPay, a reliable mobile app that makes international money transfers easy and secure. With advanced security procedures to protect against fraud, you can transfer money with confidence. Plus, our 24/7 customer support is always ready to assist you. The best defence against money transfer fraud is awareness and preparation.