Would you trust someone to watch your child or watch your dog while you are away, without verifying their credentials? Certainly not, right? At least that’s how we expect you to respond.
Similarly, in the digital world, you need to think twice before sending money to or through someone who is a complete stranger, or giving your account details to someone who requests them via email. Because once the money leaves your account, there is no way you can reverse the transaction. It is almost impossible to identify or track the threat. Major money transfer providers like us explicitly advise against sending money to strangers. So what are some common scams to watch out for, and what precautions should you take to avoid them?
Money laundering
Sometimes scams are started with an email or phone call, or even a newspaper ad, offering a commission for the job with minimal risk. All that is required of the potential customer is a laptop, an Internet connection, and a few hours a week. It could be presented as an opportunity to work from home or flexible work.
You will be asked to deposit money to receive the starter work kit or to receive a hefty payment into your bank account and then redistribute the money abroad (laundering). While scammers may convince you that the money is being used for legitimate purposes, such as trading stocks abroad or helping a charity distribute funds, you need to be vigilant. Or you could find yourself unknowingly funding criminals or turning someone’s black money into legitimate funds. Additionally, once you are lured in by a commission, scammers may also try to access your bank account using the details you have provided to them.
Do not respond to such advertisements or give your bank details to strangers. Forever.
Gift card / phishing
This scam usually happens during the Christmas season. Consumers receive emails with special promotions or gift cards that appear to be coming directly from an authorized retailer. Unfortunately, the links to the special promotion lead to a replica of the actual website. The fake site is riddled with malware, viruses, and phishing worms of all kinds that invade your devices to retrieve your financial credentials.
Look for a small security padlock icon at the bottom of your browser or next to HTTPS in the browser bar when accessing profiles, user accounts, or online forms that request financial information from you.
Online shopping
There are many bogus companies online that sell legitimate over-the-counter drugs or weight loss products. If an offer seems too cheap / good to be true, it will definitely be a scam. So no matter what the seller says, never share your credit card details for payment. Don’t take risks with your health and wealth by sending money to a stranger without proper validation and research.
Be vigilant, check reviews and avoid payments by any means. In fact, COD might be better than giving your credit card details on their website.
Vehicle sales online
Criminals often try to hide behind the names of big-name companies like eBay Motors and other well-known brands by having mirror websites, with only a slight change in the domain name. If you really want to start a car purchase, find out if the car’s seller and ownership details are really legitimate.
Don’t send money to a complete stranger. Look for reviews online about the website and take the time to do your research. Best bet: buy cars offline.
Lottery / draws
Legitimate lotteries will never require people to pay money up front. How often do you get a text message or an email saying that you won something (money or a prize)? These scams generally require you to send money to pay taxes, customs, or any administrative fees for prize collection.
Don’t even think about sending money to people who tell you you’ve “WON” something to collect your winnings. Delete the email as soon as you see the subject line that says “won”, especially if it is from an unknown entity.
To protect yourself and your money, transact only through trusted money transfer companies that have the following:
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Proven control and compliance systems
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Suspicious activity monitoring system
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Effective customer due diligence system
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Implementation of Know Your Customer
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Watch List Filtering Features
Now it is your decision to be on guard!