An in-depth look at the innovations and security measures in international money transfers
International money transfers have become the norm. People send money abroad to loved ones, buy products from foreign companies, and even freelance for agencies based overseas.
However, while international transfers are commonplace, they are vulnerable to attack. Criminals regularly try to intercept them so that they can steal the money that’s being sent. This post will explore this topic in more detail, telling you about the different security measures introduced by financial institutions to prevent their clients from having their funds stolen. Read on to find out more.
Multiple options
The first thing you need to know is that there are many different options as far as money transfers go. Most people are only aware of bank transfers, which take place on their mobile banking app. However, there are also online remittances and wire transfers. The latter is the safest and quickest type. If you want to know how to send money to Mexico or anywhere else in the world, then wire transfers are the answer.
What makes them great from a safety perspective is that payments can be recalled, whereas, with traditional bank transfers, they cannot. You usually have around 30 minutes to recall a transaction, though. If you go longer than that without trying to recall it, you have very little recourse for a refund. This is because the money will be with the other bank and out of your bank’s hands.
Exchange rates and fees
Exchange rates and fees also deserve your consideration. While not a security measure, checking exchange rates and fees prior to sending money can help you to save. When you consider the fact that most people are struggling financially right now, there has never been a better time for people to take a look at exchange rates and fees and educate themselves on saving money when they send it abroad or even domestically.
Different services charge different fees, so when you are looking for a wire service to work with, you need to shop around and get yourself a good deal. Conduct extensive online research and always read a provider’s reviews. A wire service’s reviews will give you insight into what the experience of working with them is like and help you to decide whether they are right for you or not.
Transfer scams
The next thing you need to educate yourself about is transfer scams. A transfer scam is when a fraudster impersonates a loved one or business and tries to convince you to send them money. These scams can be very sophisticated and are hard to avoid, even for the most tech savvy individuals. Before you send money to anybody, make sure that you read up on transfer scams.
Reading about them can make it much easier for you to identify them. If you do manage to successfully identify a transfer scam, get in touch with the bank they are requesting the money from and report their account. Reporting their account will make it possible for the bank to close it, which will prevent them from being able to scam anybody else in the future (for at least a little while). If you fall for a transfer scam, it can be hard to get your money back, so learn to spot them.
Recalling transactions
As mentioned previously, you usually have around 30 minutes to recall a transaction after it has been sent. Make sure that you use your chosen wire transfer’s cancel feature immediately if you make a mistake with sending money or realize that you have been scammed. Leaving canceling the transaction until a significant amount of time has passed could make it impossible for you to get your money back. Criminals favor wire transfers because banks have limited options when it comes to getting people’s funds back for them.
Card payments are much easier to recall, though. If you are shopping with a business or buying a product from a private individual, make sure that you try to use your card. Transfers should only be sent when you are paying employees, loved ones, or making personal transactions. Most wire apps have cancellation buttons on the same page where the money is transferred from.
Double-checking details
Before you send money to somebody, make sure that you double-check the recipient’s details. Double-checking somebody’s details should only take a few minutes and can save you the hassle of sending money to the wrong place. If you send money to a non-existent account, it can take a week or more for the receiving bank to realize a mistake has been made and reject the transaction. This means you could end up not getting your money back for a little while, delaying the transaction.
Also worth noting is that if you send the money to the wrong account, you will have to cancel immediately, otherwise you could find it difficult to get your money back at all. As mentioned above, getting money back from another person’s account when it has been sent by a wire transfer is extremely difficult. You need to act quickly in such situations.
Ask for confirmation
Once you have sent money to somebody, make sure that you ask them for confirmation. Asking for confirmation of a transfer is one of the best ways to make sure that you have not been scammed. If a person will not send confirmation, this is suggestive of them being a fraudster, especially if they block you immediately after you have sent money to them.
The good thing about most wire services is that they tell you as soon as money has reached the intended recipient’s account. If that person then ignores you even though you know the money is in their account, you still might have time to recall and cancel the transaction. Asking for confirmation is a habit you should get into, regardless of who you are sending money to. Confirmation can put your mind at rest since you know your money is in the right place.
Sending money can be difficult if you have never had to before. If you are interested in sending money abroad, make sure you do it safely. Try to do everything you can to avoid falling for scams and tricks. The guidance given here should hopefully help you to do that.
