Money Transfer Scams to Watch Out For When Sending Money Abroad

With the advancements in technology, there are a lot of benefits, especially the ability to transfer money globally. Those working abroad can send money back home to their family. As for the students abroad, they can get necessary resources from their family members. 

International travellers can also benefit from money transfers because they can access the cash at their destination. While there are benefits, there are drawbacks as well. Scammers are always on the lookout for opportunities to conduct money transfer frauds. 

These criminals use many practices to trick people into paying them money by creating false scenarios. Let’s explore some of the most common money transfer scams when sending money abroad. 

Why Do Money Transfer Scams Happen?

Money transfer scams are more common than you can think. The main reason why scammers pull this off is to extract money from victims by winning their trust. These scammers may act like a real and verified business or a close friend of your family members. In fact, some of these scammers also submit documents and share details that may make you believe them. 

Since the money is transferred internationally, victims often face challenges in either tracing it or recovering it. Many of these scammers may use money transfer frauds for laundering money or even legally obtained funds. In fact, some of the scammers put the money towards funding illegal activities. 

If you have to send money abroad, you should be mindful of the fraudulent money transfer activities that may happen around you. You should not send money to individuals or organisations you don’t know. 

If you’re not mindful of money scams, it can eventually lead to other fraudulent activities or crime. Some of these common fraudulent activities include bank transfer scams and frauds, and even push payment frauds. 

Common Money Transfer Scams to Watch Out For

Falling victim to money transfer frauds, especially involving international transactions, is very common. The scammers will deceive you into paying them, eventually leading to losing a lot of money. 

Below are some of the international money transfer scams that people often fall victim to:

Family Emergency

You may receive a call from an individual impersonating an authority figure, claiming that your friend or family member may be in trouble. They’ll tell you that your close person needs immediate help, as they’re stuck in a foreign land. 

A very common reason why most people fall victim to such scams is that the impersonator or scammer knows a lot of personal details. However, in some cases, most of the details that they know are easily available on the internet. 

To initiate money fraud, they’ll try to create a sense of urgency. As you become worried, you may be unable to think clearly. They will want the victim to initiate a money transfer, send cryptocurrency or send money urgently. In such cases, do not act right away, but think about it. 

If the impersonator has mentioned any name, hang up the call and then call the individual the scammer mentioned. If that isn’t feasible, you should also interrogate the impersonator about personal details. This should help you avoid the risk of falling victim to scams. 

Immigration Scams

When you’re travelling abroad, one of your main concerns would be immigration. While you’re preparing all the documents, you should also watch out for money scams. Oftentimes, scammers may call you and claim that there’s a problem with one of your documents. 

While you may try to figure out what the problem is, they will suggest making a payment of a certain amount to resolve the issue immediately. They will provide bank account details where you’re required to make the payment. 

In case of immigration scams where the individual tries to extort money from you, do not give away the details. Rather than paying the individual, visit the official website of the immigration authority and verify their method of payment acceptance. 

Avoid international money transfers at all costs, even if it is via gift cards or to personal accounts. This is one of the common scams where the method of reaching out may change frequently. However, you should watch out for the signs that will help you stay safe. 

Money Mule Scheme

You must really watch out for these fraudulent money activities, for there is a lot involved. The scammers will ask you to transfer a small amount of money and then send it forward. You will be promised a small fee for it. 

You’ll often have foreigners trying to contact you for the same. When you are to remit money from India to someone abroad, make sure that you know the recipient and the purpose of the transaction. It is very important that you avoid making transactions for unknown individuals who promise a commission. 

If you accept the offer, in some cases, you unknowingly become a part of the money mule scheme. You will be exposed to legal and financial risks. Before you initiate the international transfer, you should always verify the recipient details and legitimately transfer the money. 

Job Scams

Getting a job abroad can be a big deal and will mean financial security. However, many individuals carry out money transfer frauds through this method. The scammers will post fake jobs via fake websites and social media, often promising a work-from-home opportunity. 

After you express your interest, you’ll need to undergo the entire interview process, which feels very real. As part of the hiring process, they will suggest that you transfer some amount. They promise that upon successful payment, you will get to complete the mandatory training course and receive equipment. 

If you come across any such companies and offers that are extremely attractive, often as if it is unbelievable, make sure to research the company independently. Visit their official website and check the contact details. Moreover, any company that asks you to pay upfront for any reason is likely not legit. 

Falling victim to such a send-money scam can be very disheartening. This is mostly because you were expecting to get a stable job from an international company. Be very cautious before making payments, as you may find out the truth after you’ve made the payment. 

Extortion Scams

If you’ve been active on social media and dating sites, you’re likely to have heard of extortion scams. These are very common, where the fraudster asks you to send money to them. Either these fraudsters will build a story or blackmail the victim. 

In the case of extortion scams, the scammer may claim to have your embarrassing or compromising pictures. These individuals often send such messages hoping that they will get only a small percentage in return. 

While such messages can be very triggering, it is important that you avoid them. These criminals try to conduct these money scams by hacking your social media accounts. 

Irrespective of the scenario, do not fall victim to such scams. You should reach out for legal help. The best thing to do in such a scenario is often to delete and ignore the message completely. If you identify any attachments or links, make sure to avoid them. Furthermore, change your password for better safety. 

Low Exchange Rates 

A low exchange rate may make international money transfer very attractive. These scammers will advertise the low exchange rates across all platforms so that users like you send money using their platform. However, it is only when you’re lured in and trying to make the payment that you will realise the hidden charges. 

Before sending money internationally according to the exchange rates provided by the scammer, so a thorough market research. You must check the fee structure and the current exchange rate being offered in the market. 

You should avoid using unauthorised platforms or individuals who promise you better rates. To avoid low exchange rate scams, you should choose an authorised money transfer provider such as Thomas Cook. You can verify the details from the official website. 

An authorised partner will provide transparent rates. Furthermore, using platforms like Thomas Cook assures that you’ll be informed about the price changes. Therefore, you can lock in the best exchange rates and avoid losing money due to fluctuating exchange rates. 

Tech Support

These tech support scammers often carry out fraud money transfers at a significant rate. These scammers will reach out to unsuspecting victims, especially those who are not that tech-savvy or tech-educated. Therefore, people who are not technologically advanced are likely to suffer. 

Impersonating tech support, these individuals will demand money for fixing a problem that was not there earlier. They will threaten to cause damage and even hold a ransom when payment is not made in time. 

Whether you’re tech-savvy or not, if someone calls you and asks for your financial details, hang up on them. Do not provide any information that can be useful to them, leading you to lose money. Always work with a reputed and authorised money transfer platform to avoid legal risks. 

Warning Signs to Watch Out For Money Transfer Frauds

You should be mindful about using wire transfers, because these scammers get most of their information from here. To identify money transfer scams, you should watch out for the following signs:

1. An individual requesting money in different forms, like wire transfers or gift cards. 
2. Any third-party money transfer platform that is most likely a fraudulent account. 
3. Any individual/platform that promises to offer higher returns on investments. 
4. A platform that promises to keep your transactions a secret. 
5. A platform that promises you will pay the fees upfront. 

How to Avoid Falling Victim to Money Transfer Scams?

Below are some of the key tips to avoid becoming a victim of money transfer scams:

1. Avoid sending money to any unknown individuals. Even if they seem legitimate, you should not send money internationally to someone you don’t know. 
2. Watch out for unsolicited money requests. If anyone asks you to send money, double-check their details. Make sure you know your recipient and the purpose of transactions. 
3. Keep track of all your payments and transactions, especially the international ones. Maintain a record of official documents and ensure that they match. 
4. Do not use any unauthorised platforms for money transfers, especially when they’re offering low exchange rates. 

Conclusion

With money transfer frauds increasing, you should be really mindful about your transactions and activities. To avoid losing out on money, use a reliable platform like Thomas Cook. The accurate exchange rates ensure that you’re protected against potential risks.

FAQs

What money transfer scams do people fall victim to when sending money abroad?

When you’re sending money abroad, there are some major scams like phishing messages, fraudulent payment requests, impersonation scams and offers that promise a favourable exchange rate. 

How to verify if the international money transfer service is legitimate?

Before sending money abroad, it is crucial to verify that the money transfer service is legitimate. Therefore, you should not rely on any links, but check their website and the exchange rates they’re offering. Furthermore, consider the terms of transactions. 

Can you identify if a money transfer request is a scam?

It is often difficult to identify if the money transfer request is a scam. If anyone you don’t know has reached out to you and asked you to use an unfamiliar method of payment, they’re likely a scam. Furthermore, sometimes these individuals may also request that you make payments from an unverified source. 

Is it safe to share any personal financial details for international money transfer?

You should use personal financial details for international money transfer only if you’re using verified channels. Do not share OTPs, PINs or authentication credentials with anyone. 

Do scammers use fake exchange rates to trick you into international money transfers?

Yes, some scammers use fake exchange rates to initiate an international send money scam. They may communicate a lower fee and then add undisclosed charges later. Before you transfer the amount, make sure to check the exchange rate they’re offering. 

How to send money abroad safely and avoid scams?

If you want to transfer money abroad safely, you should verify the recipient’s details carefully. Before making any payment, confirm the recipient’s details. Furthermore, you must avoid using any fraud money transfer links.