Home Business How to Avoid Online Money Transfer Fraud?

How to Avoid Online Money Transfer Fraud?

by hiteshc
How to Avoid Online Money Transfer Fraud

Prevention is better than cure. This adage is true more so in the realm of online fund/money transfers. Money transfers are an easy way for scammers. There is no way to refund the money or even stop your transaction. Money transfer frauds occur mainly due to the naivety of the aggrieved party or the most realistic representation of the fraud companies which dupes people.

Let us look at the various ways in which one can avoid fraudsters prowling through online money transfers:

Fake Checks To be Encashed

Fraudsters indulging in this send you a check with almost legitimates instructions to deposit it with the bank and wire transfer some or whole of the money. The check might be encashed and fools bank tellers but later turns out the fake. The money is recovered from you as the account holder, with no reprieve let for you. These checks might cover the cost of processing fees, shipping costs, and other expenses. It might be a personal check, cashier’s check or even a money order.


Many times fraudsters might send a confirmation code or Money Transfer Control Number (MTCN) which they can provide to entice you with an offering if you wire the money. These frauds are hard to detect as the money picked up quickly.

Nigerian” fund scams

Sending money to Nigeria might have its perils if you end up becoming a part of the scam claiming to be Nigerian officials, businessmen or even royalty who ask offer to reward you with few millions of dollars if you send a fee via transfer. Sometimes they offer to send it directly or offer it to a charity of your choice. Sometimes they ask to send money to cover transfer cost and attorney fees.

[box type=”shadow” align=”” class=”” width=””]Read Also: Currency trading Tools – Emerging Your Skills For Consistent Earnings[/box]

Work at home schemes

These are fraudulent schemes designed in a manner that requires you to deposit checks into your account, keep a certain percentage and then transfer the rest to another account they provide. These checks are obviously fraudulent and are known to have been written by victims of online purchase frauds who never received any merchandise in return. The thieves acquire your banking information through the wire transfer and can use the numbers to create a demand draft to make an unauthorized debit. Avoid any such job listings with “money relayers”, “foreign agent agreements” and such.

Fees for Advance Loans

This plays on the insecurities of people who know they have a bad credit standing and will not be able to get loans approved from normal banks and financial institutions. Such a person is lured to pay a “processing fees” for getting a large loan transferred in advance. One has to be careful if anyone is offering a loan without any credit appraisal or report. Real lenders do charge fees and processing expenses but it generally deducts from the loan amount and paid after the loan allotted to you.

Lotteries and sweepstakes

You might receive a certificate or letter informing you of a large prize along with a check to encash. You are asked to keep the cash and send a “processing fee” to an account. The victim might feel sending the fees is imperative to getting the prize and once he does so, never sees any money back.

Bogus Classified Ads

Purchasing from any classified ad can be welcoming a scam as well. Many scammers advertise big-ticket items such as a car and insist on wiring the money in full or before delivery. They might also insist on an escrow service you have never heard of which might turn out to be fake.

Hence, always deal with known dealers or at least the ones you can visit.

[box type=”shadow” align=”” class=”” width=””]Read Also: GDPR Compliance for Ecommerce Store[/box]

Fakes Websites

Online shopping is easy prey to the menace of tech-savvy fraudsters who can create a fake wall where your wire transfers account details can be accessed. Be aware of the security level and the Genuity of the sites

How to Protect Yourself

  • Never fall for a quick money making scheme. If you are asked to transfer money for receiving money – it surely is a scam.
  • Even faking old acquaintances who need money and are in dire circumstances or an old lost love wanting to meet you and asking for a plane ticket money can fruitful propositions for these scammers. Always be wary of long stories, dramatic emails and try to re-confirm with concerned people.
  • The garb commonly played by scammers is overseas charities pretending to be orphanages or some other causes. They try to blackmail emotionally with a physical letter written by terminally ill kids, or kids from war-torn countries looking for monetary help. Doing due diligence in such cases is of utmost importance as it might be genuine but knowing its sources and background is critical.

While Boxypay runs a protected and secure service to send money to Nigeria, we ensure thorough due diligence of accounts and transfers especially with frequent patterns and strange addresses to form a net to catch such fraudsters. It is advisable to always check with your service provider if you are unsure of the transfer request.

Choosing a Trusted Money Transfer Provider is Essential

  • Ensure the company you are using for money transfer especially to foreign countries has a fraud prevention team.
  • SSL encryption is now the most basic method of securing privacy. Even sophisticated technology to monitor registrations and logins is essential.
  • A multi-layered fraud detection system has to be in place which helps in prevention, can help detect malware fraudulent apps and software, phishing scam and any new such attempts to enter your money transfer account.
    It is important to know that wire transfer is a personal identity and anyone can steal it if you give it to the wrong people.

Related Posts

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept