Decoding Money Transfer Scams: Uncovering the Threats and Shielding Your Transactions. Guest post by Rohan Singh 

Indians are increasingly sending money abroad for various purposes such as family maintenance, overseas investments, academic fees, and hospitalization expenses. In 2020 alone, $344 million was transferred for family maintenance.

However, the rise of online fraudulent activities is a growing concern, with scammers misusing technology to swindle people. This blog aims to educate readers on common remittance frauds and how to stay protected.

Types of Money Transfer Frauds


1. Charity Scam

Donation scams prey on people’s compassionate nature, exploiting their willingness to help those in need. Scammers deceive individuals by falsely claiming that their contributions will benefit the elderly, orphans, and other vulnerable groups.

They employ manipulative language to convince unsuspecting victims to transfer funds to a charity’s bank account. If you encounter a charity scammer via email or social media, it is crucial to immediately cease communication to protect yourself.

2. Immigration Scam

The immigration scam involves fraudulent individuals posing as immigration officials, often using the name of reputable organizations. They manipulate victims by providing seemingly genuine information about their immigration status. However, a closer examination reveals the deception.

Scammers exploit the victims’ fear and urgency by demanding immediate payment through money transfers to resolve fabricated immigration issues. They may resort to threats of arrest and deportation to coerce victims into complying with their demands. It is important to remain vigilant and seek legitimate channels for immigration matters to avoid falling victim to such scams.

3. Emergency Scam

The emergency scam involves scammers posing as distant relatives in desperate need of financial assistance. These fraudsters excel at emotional manipulation, fabricating convincing stories to make the emergency appear genuine. A key characteristic of this scam is the sense of urgency, pressuring victims to send money quickly through a transfer service.

Scammers aim to exploit impulsive decision-making, rushing individuals into providing funds as soon as possible. It is crucial to remain calm and composed when faced with such situations, avoiding hasty actions. By maintaining composure, you can protect yourself from falling victim to an emergency scam.

4. Lottery Scam

The lottery scam involves fraudsters deceiving victims by falsely claiming that they have won a significant amount of money in a prize draw. If you receive a suspicious phone call or email regarding a lottery win, it is important to remain cautious. Sharing sensitive banking information to claim the prize should raise a red flag, as it is likely a fraudulent scheme.

Additionally, victims may be asked to send an upfront fee to cover supposed taxes on the winnings. This is another indicator of a scam. It is crucial to exercise scepticism and refrain from providing any personal or financial information or sending money in such situations.

5. Relationship Scam

In the relationship scam, scammers pose as romantic partners online to gain the trust of their victims. They create a strong emotional connection and eventually persuade the victim to send them money under the guise of financial assistance. Be cautious of such individuals on social media and online dating platforms.

6.Authorized Push Payment Fraud

Authorized push payment (APP) fraud occurs when criminals deceive customers into transferring money to an account under their control. This type of fraud heavily relies on the victim trusting the person they believe the fraudster to be. For instance, the fraudster may impersonate a representative from the victim’s bank, claim their account has been compromised, and persuade them to move funds to a different account controlled by the fraudster.

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APP fraud was prevalent among businesses last year and shows no signs of decline this year. In the U.K., losses due to APP fraud reached £456 million ($603.7 million USD) last year, surpassing the previous year’s figure of £354 million ($468.7 million USD). It is crucial for individuals and businesses to remain vigilant and take precautions to protect themselves against this growing threat.

Top Tips To Avoid Money Transfer Frauds

1. Exercise caution when sending money to individuals you don’t know.

2. Try to avoid making large money transfers whenever possible.

3. Trust reputable and secure money transfer service providers.

4. Avoid sharing personal information through unsolicited calls or messages.

5. Safeguard your computer with reliable malware protection to prevent hackers from accessing your personal information.

6. Steer clear of sellers with low ratings or those who refuse to accept secure payment options like credit cards or other traceable methods.

7. Stay away from suspicious web links that may lead to fraudulent activities.

8. Enable 2-Factor Authentication for added security.

Final Thoughts

Money transfer scams are a real threat that anyone can fall victim to. It is crucial to educate yourself about the different types of scams and be vigilant when making any transaction. By following the tips outlined in this article, you can minimize your risk of falling prey to these fraudulent activities. Always remember to verify the identity of the recipient, double-check all details before sending money, and never share your personal information with strangers. Your safety and security should always come first. Stay informed, stay alert, and protect your hard-earned money from scammers.
Rohan Singh is Content Head at Jupiter Money >

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