08 Aug 2024
Innumerable online money transfer service providers help well over 300 million migrants with their remittance transfers back home. Many online money transfer service providers have set tight security around their transactions. But do you know that online scams and frauds are pretty much real? They do threaten your online financial transactions. Whether you want to send money online or make payment for online shopping, you are likely to fall victim to these varying financial frauds.
But the bigger question is: do online financial scams happen all of a sudden? Are there any early warning signs that you need to be aware of? Are there any red flags that essentially appear around the same time as the appearance of an online scam?
Continue reading to find the interesting answers below.
Online scams in the financial realm are real. These manifest more in the global remittance industry. But what can confuse you is the variation in the modus operandi. Every financial fraud aiming to fleece you comes in different forms. At times, the names of the scams are such that you feel like believing these are not frauds. But regardless of the change in names and titles, every financial fraud will essentially:
· Aim to fleece you financially
· Access your data such as your bank account details, and card information
But remember that every online scam will come with some signs which you can easily understand as red flags. Therefore, as soon as you find some of the red flags discussed below, take precautionary measures to ensure your online safety. Keep in mind that some red flags are common in every type of online fraud.
These red flags can also appear in the global money transfers you make to offer financial support to your family back home. A Business Daily report, sourcing its data from FinAccess, stated that around 47.4% of Kenyans lost their mobile money as a result of online scams. They sent the funds to the wrong persons because they ignored the warnings. Therefore, make sure to keep a keen eye out for red flags and take immediate action as soon as these appear.
One of the most common red flags in online financial scams is that you will receive unsolicited offers. You can expect a phone call, a text message, or an email making an offer about a financial matter you are just not concerned with. This happens all of a sudden and unexpectedly.
Scammers make such calls and send you such messages and emails to lure you into doing things you are not supposed to do at any cost. The typical content of such calls, messages, and emails is that you have won a lottery, or your name has been selected for a lucky draw. Also, you have been selected for a monetary reward by a company.
Since the offer contains monetary benefits, you will realize only later that the company offering you the said reward does not even exist in the first place! Or the person talking to you is just a stranger you know nothing about. It is a red flag. Beware!
Another red flag that you must be aware of is that the scammer will always seem to be in a hurry. They will try to persuade you to do things you might not otherwise like to do, quickly. They do it in haste so that you are unable to process the scam, wait, and ask questions.
Imagine you are told that you have won a huge lottery, one fine morning. The amount you seem to have won is so big that your senses get suspended and you are ready to do anything to lay your hands on the amount. Right? Your extreme excitement coupled with the haste scammers make can land you in grave trouble. You easily share your sensitive data with scammers. They convince you for a money transfer to them as fees to process the payment.
Another red flag in online financial scams is that scammers will contact you and the first thing they want from you is your information. In all such cases the information mostly sought is about your bank account, credit card, and debit card.
Always remember that genuine financial institutions will never be interested in seeking such information. Therefore, be mindful that each time you get called by someone seeking your information from you, it is a red flag.
Since most scammers give their correspondence a professional look, they prefer sending emails. Emails are still the most popular and professional way of correspondence. But in the process, they make terrible grammar and spelling mistakes.
These mistakes and grammatical errors are so manifest that they speak for themselves and are enough to warn you as being red flags. But the key is to read every word of the emails you receive from unknown sources with utmost care so that you mark the mistakes. You will find these red flags in every online financial scam.
Learn here more about online financial fraud and how to stay safe.
Another red flag is that scammers will play the victim and seek your sympathy. They will pretend to have been affected badly by some event or an accident. Therefore, they will appear to need your sympathy, not money!
Initially, a scammer will try to gain your sympathy by spinning any story to you. This story can change from scammer to scammer. Once you begin to sympathize, they ask you to offer them financial help.
You can entrust a service provider with the safety of your funds and transactions. But there are certain steps that you can, and rather must, take to ensure your online safety. These steps are easy to follow.
· Learn about the scams
· Never use a public Wi-Fi connection
· Never share your information
· Use authentic websites and secure links
· Use multi-factor authentication
· Keep your antivirus software updated and scan devices regularly
· Check your details thoroughly while executing a transaction
· Select your service provider with utmost care
No matter how much the difference in the titles of the scams, they boil down to fleecing you. Every online financial fraud listed below comes only with one objective and that is to deprive you of your hard-earned money in any way.
· Identity theft
· Remote access fraud
· Vishing
· Phishing
· Investment fraud
· Online shopping scams
When you send money online you entrust your service provider with your hard-earned money. Therefore, never sit back and trust what your service provider tells you about their security parameters.
Always make sure to thoroughly understand how their security works. Also, try to get other monetary benefits by talking to them. These benefits include low fees, speed, and live and market-competitive currency exchange rates. Live exchange rates will compensate you for whatever small fee you end up paying them.
Online financial frauds refer to the virtual robbery that scammers undertake. They aim to fleece you financially by applying whatever tactics they can apply for the purpose. Online financial frauds come in different types and with different titles but regardless of the modus operandi, the objective remains the same which is to fleece you.
No. Any online financial fraud will not happen just randomly. Scammers first set the trap and make the ground for an online scam and then try to get you trapped. But in the process, they wave several red flags. If you are aware of those red flags, you can easily guard yourself against any type of financial fraud.
Some of the most common red flags that you can see in any online scam are that scammers will be in a hurry and want you to respond to their calls and messages quickly, you are contacted by people you just do not know, you are requested to share your personal information, your sympathy is sought initially, and that the correspondence has spelling and grammatical mistakes.
Some of the most common and famous online financial scams are identity theft and account takeover, romance scams, lottery scams, vishing, phishing, remote access fraud, investment fraud, and online shopping fraud. If you are aware of these types of online financial fraud, you will be able to ensure your safety online.
Some of the tips to stay safe online are to use multi-factor authentication, never use a public or open Wi-Fi connection, install antivirus software on your devices, keep it updated and keep scanning your devices regularly, never share your information, use safe links and websites, check your details in a transaction thoroughly, and choose your service provider carefully.
