Money remittance scams and how to avoid being a victim

Remittance has played a huge role in the global economy, especially for developing countries. Many money transfer companies and services continue to emerge in promoting a better way on safe money transfer. This has also been an opportunity for scammers and con artists to target vulnerable people using sophisticated methods to steal money. To avoid being the victim of money transfer frauds, it is important to be aware of the common strategies scammers use. This article discusses the signs that the company is a fraud, ways to avoid scams and the types of scams that are widely-used.

I. Common Scams in Remittances

A. Tremendous additional fees

o This scam involves a massive amount of additional fees that are added up by scammers. The process makes you pay an initial fee which victims think is the total fee of the transaction. This, however, requires more additional fees that are suddenly topped up to the current bill, forcing victims without a choice but to pay more or else they won’t be able to continue their transaction.

B. Wire transfer scam

o Scammers tend to pretend as legitimate companies and it is extremely important to pay through trusted merchants. Scammers would only recommend wire transfers and once the payment gets through, it will be impossible to retrieve back the money.

C. Irresistible deals

o Have you ever received an email or a pop-up stating that you have won money or won a lottery? It’s most likely a scam.

Con artists would usually provide a tempting bargain to make you think that you are benefitting more on the deal, but in reality, it’s them who benefits from it. It is important to always think logically as businesses require money to operate. Always make sure that the business you are transacting with is a reputable and trusted one.

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II. Indication of a scammer

A. Unregistered company

o Remittance companies that are operating in your local area should be registered. It is vital to do a quick history check up on the company you will transact with.

B. Unsecured Website

o A secured address of a website is protected from identity theft who steal personal information.

C. No Physical Address

o Technology such as google maps can show if a lender has a physical location. If there’s no actual physical address, avoid the lender. Scammers would hide and be untraceable to avoid legal consequences.

D. The company asserts pressure to take the deal

o Scammers will often try to rush victims into making a bad snap decision by creating urgency, they could provide tempting deals or try to add pressure to pay as early as possible before finding out they are trying to scam you.

E. Contacted out of the blue

o Were you contacted out of the blue for some exciting deals or something you have never applied for? Take a minute to consider how these people have got your details and why they've contacted you.

F. Unprofessional communication (emails)

o To spot fake emails, the common mistakes are usually poorly written emails, or emails that as for personal information, prompting you to click on a link and either download or fill in your log in details.

G. Sender or caller is in a different country

o When you receive suspicious calls from another country, try not to entertain or proceed with caution. Many scammers target people living abroad as it makes them more difficult to trace.

Transferring money online is easy and convenient. But on the contrary, con artists also find it easy and convenient to scam people online. It is essential to take precautionary measures to avoid falling into the hands of scammers. Be wary and send money to businesses that are known and established money transfer services.