Who is Accountable? ?? The Hidden Risks of Global Money Transfers in Emergencies ??

Recent events, like the MoneyGram cybersecurity incident, have exposed a critical issue in the global remittance system, what happens when the money you send for medical emergencies or daily necessities is stuck due to system failures?

According their survey published by MoneyGram earlier this month found that nearly half of its customers send money across borders to help family members buy food, while more than a third wired money for emergency costs.?

MoneyGram serves more than 50 million people in more than 200 countries and territories each year, processing more than $200 billion annually, according to the company.?

The average monthly money transfer from the U.S. to Mexico came to $390 in 2022, it found.

Let’s consider a scenario. A family member in the U.S. sends money to a relative in India Or Mexico for an emergency. But because of a cyberattack, the transaction is delayed or blocked. Who’s responsible? In case this delay leads to death.

?? Challenges and Accountability:

1. Service Providers: While companies like MoneyGram work hard to secure their systems, they often limit liability for such outages in their terms of service. So, legal recourse is challenging OR almost impossible for victim to hold MoneyGram International accountable.

2. Cross-Border Complexities: In international transactions, different legal jurisdictions make it difficult to pin accountability on any one party.

3. Critical Time Factor: In emergencies, the impact isn’t just financial, it could be life threatening. Delayed transactions could mean missed medical treatments or unfulfilled essential needs even leading to complication & deaths.

?? Proposed Global Solution:

1. Emergency Transfer Backup System: Establish a global financial emergency network, supported by international financial bodies like the World Bank, IMF, and regional banks. This would act as a backup when primary systems go down.

2. Real-Time Compensation & Support: Governments and remittance companies should partner to create instant emergency relief funds, offering immediate payouts to affected parties in life-threatening situations.

3. Regulation: Encourage global regulatory frameworks that enforce transparency and minimum operational standards for money transfer services during emergencies.

4. Insurance: Introduce affordable remittance insurance that covers delays or outages in critical situations, ensuring recipients can access needed funds immediately.

This is a wake-up call for the global financial ecosystem to strengthen remittance systems, ensuring that money can reach those who need it, especially during emergencies.

#Cybersecurity #GlobalFinance #Remittances #Emergencies #MoneyTransfer #FinancialInclusion #TechForGood