17 Jul 2023
Extreme caution is needed to guard against online financial fraud!
As a Bangladeshi migrant living in a foreign country to earn a living, you can find it pretty easy to send money to Bangladesh to offer financial support to your family back home. You can do this by using technology in its different manifestations.
But have you ever thought about online financial fraud?
Do you know what are the different types of fraud that you can be subjected to as an expatriate during the remittance transfer process?
Well, in all likelihood, you may have a slight idea about financial scams. But one of the most common scams is identity theft.
Identity theft is one of the most common financial frauds several migrants are subjected to. The reason behind the rise in identity theft crimes is that it is associated with your bank account that you have in a foreign country.
This blog will guide you about identity theft and will share some important tips to guard against this fraud.
Arab News said, sourcing its data from Bangladesh’s Bureau of Manpower Employment, that about 10 million Bangladeshi migrants are living in foreign countries for different purposes.
The same report said that the government is planning to send 1 million more migrants to foreign countries to diversify its labor migration destinations. One of the primary reasons behind the initiative is to boost the flow of inward remittances, which serve Bangladesh’s economy as a financial lifeline.
According to a report by Statista, the volume of inward remittances to Bangladesh in 2022 was $21.5 billion.
One of the primary requirements for expatriates, after they land in foreign countries, is to open a bank account. Because the trend to deal in cash in most developed countries is on the decline, and people find it convenient to manage their money virtually and digitally. For this purpose, opening a bank account is essential.
That you should use your bank account for a money transfer to Bangladesh is not mandatory, but having one helps you better manage your finances and fulfil your employer’s requirement of opening one.
But here is the catch!
You become vulnerable to identity theft when you open a bank account in a foreign country. Because although remittance transfers with banks are not ideal, some Bangladeshi migrants still prefer to send money to Bangladesh through banks.
Let’s now understand identity theft.
Identity theft happens when someone gets your sensitive data to steal money from you. An identity thief can steal money from your bank or investment accounts. They can open new credit lines, get utility services, use insurance information to get medical treatments and even steal your tax refund.
You become prone to identity theft if your bank account number, social security number, or credit card information is stolen.
Therefore, be careful while disposing of papers containing your sensitive information because some identity thieves sift through trash bins to find your credit card or bank account statements.
The National Council On Identity Theft Protection reported that identity theft is a serious challenge for people who use online financial services, including banks, for online shopping and that the market for identity theft protection services is likely to reach a hefty $28 billion by 2029.
Take a look at some of the alarming identity theft statistics below.
Keeping an eye on these statistics, it becomes essential to exercise caution while using your bank account, whether for online shopping or an online money transfer to Bangladesh.
Do you know whether a bank refunds a fraudulent transaction or not?
Well, click HERE to know all you must about such a scenario.
Let’s now see what steps you can take to guard against identity theft.
Where you can report the crime to your concerned bank branch or a financial institution, the following tips will help you prevent identity theft from occurring.
Make sure to collect your mail daily from the mailbox. Most banks still send you bank statements and credit card bills through paper mail. These documents carry your personal financial information and can leave you vulnerable to identity theft if left unattended.
You must check your bank and credit card statements frequently. And the critically important point is to check these statements each time you make a transaction. Regularly checking can keep you on alert about the scam.
Always shred each document containing your personal information properly before disposing of it. An identity thief can get hold of such a document and deprive you of your money.
Make sure to use strong passwords, each one of them different for different accounts. Never use any hint in a password about yourself, your family and other related matters. Use, instead, awkward and unique passwords, and to remember them, use tools like password manager.
Whenever you get your credit report, make sure to check it and compare the current one with the previous one. This will highlight discrepancies if any. How much time intervenes between two credit reports depends on your subscription plan.
Use strong antivirus software and keep updating it regularly. It should be installed both on your smartphone and your computer or any other device you may use for financial transactions.
These tips will help you guard against identity theft.
The threat of identity theft arises when a) you fail to handle your sensitive data with care and b) when you try to transfer remittances through banks. But if you send money online to Bangladesh with ACE Money Transfer, you will be automatically guarded against this scam and will get speed, safety, wider service access, and market-competitive currency exchange rates from one window just for a low fee.
Frequently Asked Questions (FAQs)
Ans. Identity theft is one of the several financial scams. It occurs when someone steals your personal information to commit fraud. This fraud can include stealing money, tax refunds, and making fraudulent transactions.
Ans. You must take the following steps to ensure your bank account’s safety:
Ans. Contact your bank immediately if you think your account has been hacked. Place a request to freeze your account and block the cards right away.
Ans. The following signs must set the alarm bells ringing:
Ans. The consequences of identity theft are grim and can include loss of money, credit score damage, and legal complications.
Resources
(Bangladesh sets target to send 1 million workers abroad in 2022 | Arab News)
(Bangladesh: value of remittances 2022 | Statista)
