Money transfer, red flags you need to know about

Online money transfer has become increasingly popular over the past few years, due to the rise of online banking and fintech companies.

?However, this has also led to an increase in online money transfer scams. Scammers are always on the lookout for new ways to defraud people and steal their hard-earned money.?

These scams can be devastating to the victim, resulting in the loss of a significant amount of money.?

According to a 2021 FinAccess survey, half of the mobile users (47.4%) in Kenya had lost their money by sending it to the wrong person or through fraud.

It is essential to be aware of the red flags of these scams to protect yourself from falling victim.?

In this post, we will discuss the red flags a customer should know in online money transfer scams.

Here are some red flags you should know about.

1. Unsolicited offers

One of the most common red flags of online money transfer scams is unsolicited offers. If you receive an offer for a money transfer that you did not initiate, it is likely a scam.?

Scammers will often send you messages via email, text, or social media, claiming that you have won a prize or you have been selected for a special offer.

They may also claim to be a representative of a company that you have done business with in the past.

Be wary of emails, text messages, or phone calls from unknown individuals offering to transfer money to you or asking you to transfer money to them.

2. Requests for personal information

Another red flag of online money transfer scams is a request for personal information.

Scammers will often ask for personal information, such as your bank account number, full name, date of birth, pin, and debit or credit card details.

Scammers may use this information to commit identity theft or to gain access to your bank account.

Never share your personal information with anyone you do not know or trust. Legitimate financial institutions will not ask for this information unless you are applying for a loan or opening an account.

3. High-pressure tactics? - Persistent, persuasive, and forceful

Scammers often use high-pressure tactics to persuade victims to transfer money quickly. They may use scare tactics, such as threatening legal action or claiming that a loved one is in danger.

They may also offer incentives or rewards for quick action, such as a discount or a bonus. Be wary of any offer that requires you to act quickly.

Scammers may claim that there is an emergency that requires you to act fast and send money.

Always take your time to research the situation and verify the legitimacy of the request before sending any money.

4. Unusual payment methods

Scammers may ask for payment in unusual ways, such as through gift cards, cryptocurrency, or wire transfers.?

Be wary of any request for payment that is not through a legitimate financial institution. These payment methods are difficult to trace and are often used by scammers to avoid detection.

Legitimate money transfer services will offer a variety of payment options, including credit and debit cards, bank transfers, and payment platforms such as PayPal.

Key Takeaway

online money transfer scams are a growing problem, and it is important to be aware of the red flags.?

Always be wary of unsolicited offers, requests for personal information, high-pressure tactics, and unusual payment methods.

If you suspect that you have been a victim of an online money transfer scam, contact your bank or financial institution immediately. Remember, it is always better to be safe than sorry.

?Stay alert and stay safe!