26 Jul 2023
The World Migration Report by the UN stated that about 281 million migrants, constituting about 3.60% of the total global population, worked in foreign countries. These migrants seek better employment opportunities in countries other than their own to earn a living and send money online to offer financial support to their families back home.
Given that a majority of migrants belong to low- to middle-income countries (LMICs), the World Bank has reported that the flow of remittances had grown by about 5% to $626 billion into the (LMICs).
This rise, the same report said, was lower than the 10.2% increase in remittances in 2021.
Although, as part of the large global expatriate community, you are accustomed to sending money online to your respective countries, there are still some challenges that you have to be thoughtful about.
Do you know what these challenges are?
Well, these challenges can be many and diverse, but one of the biggest is online scams and frauds, which, if you fall victim to them, have the potential to deprive you of your hard-earned money.
This blog will, however, walk you through a few most common online scams and a few tips to guard against those.
But before explaining the types of common financial fraud, let’s first try and understand them.
Financial fraud is when someone deprives you of your money or harms your financial health through deceit and other illegal means. The modus operandi can vary and range from identity theft to phishing, investment fraud, etc.
The following few reasons make it essential for you to have a complete understanding of financial fraud.
How would you know if you are being deceived by a service provider if you do not just know anything about online scams? Since the modus operandi are several and include emails, phone calls, charity requests, etc., not knowing about these can make you an easy victim of any of these.
Could you afford to be less or loosely conscious about the safety of your money and funds if you hail from a financial background where putting food on tables is a big challenge?
Since most of the migrants belong to humble financial backgrounds, they have to ensure they use a service provider whose services are tightly secured and out of the reach of scammers.
Your level of alertness increases to the maximum as online scams are rising worldwide in their different manifestations. Where there is an online financial transaction, the risk of deception runs high.
A quick look, in this context, however, on some online scam statistics is pertinent here.
Let’s now see some of the most common frauds you need to watch out for in 2023, particularly in a money transfer.
Broadly, scams can be categorised into two categories: phishing and social engineering. Remember that in all of these, the one common point is to transfer money online.
These are scams in which you are duped through fraudulent communication from apparently reliable sources like your bank or your employer.
Typically, it involves a phone call or an email in which the scammer tries to steal your financial data.
In these scams, the scammers try to play around with you psychologically. These normally involve phone calls and meetings. Social issues, including the need for charity, finding partners, etc., are used as a basis to initiate such frauds.
Below, a few scams are listed that are likely to rise in 2023.
Financial woes are increasing worldwide, and the sufferings of people reaching across borders through social media, and you cannot resist the temptation to help. Scammers will exploit your empathy by pretending to be representing charity organisations to collect funds and help the needy.
You want quick and best results with minimal effort. Right?
This cannot be truer than in your fitness goals. The trend to stay fit is on the rise worldwide, and you desire to shed a few pounds quickly through different means possible, including diet plans, medication, exercise, etc.
Scammers in this will pretend to be presenting legitimate sites and ask for registration, etc., and dupe you.
In these scams, fraudsters will prey on your emotions and connect with you for quite a while, give you time and bring you to a point where you begin to think you have found the right person. Beware! It is a scam meant to steal your money.
Click the link below to learn more about online buying and selling scams.
Online Buying And Selling Scams.
One of the best features that ensure protection against scams in ACE Money Transfer’s online money transfer is the speed which is just a few seconds and minutes that does not give time to scammers to prey; in addition to tight security parameters, low fees, live exchange rates, and much more from one stop.
What are the most prevalent online scams expected in 2023?
In 2023, the top three online scams to watch out for are phishing attacks, cryptocurrency scams, and social media impersonation. Phishing attacks involve deceptive emails or websites aimed at stealing sensitive information, while cryptocurrency scams lure victims into fraudulent investment schemes. Social media impersonation refers to scammers posing as someone else on social platforms to deceive users and extract personal details or money.
How can I protect myself from falling victim to phishing attacks?
To protect yourself from phishing attacks, exercise caution when clicking on links in emails or messages from unknown senders. Always verify the authenticity of websites before entering sensitive information, and use two-factor authentication whenever possible. Additionally, keep your devices and software up to date to patch potential vulnerabilities that scammers might exploit.
What red flags should I look out for in cryptocurrency scams?
When dealing with cryptocurrency, be wary of investment opportunities that promise unrealistically high returns with little or no risk. If someone pressures you to invest quickly without proper research, it could be a scam. Always verify the legitimacy of the platform or individual offering the investment, and avoid sharing your private keys or personal information with anyone.
How can I spot a social media impersonation scam?
Social media impersonation scams can be identified by closely examining the user's profile and interactions. Look for accounts with few posts, a limited number of followers, and suspicious activity, such as sending unsolicited messages or requests for money. If you receive a friend request or message from someone you know but find it unusual, reach out to the real person through other means to verify their identity.
What should I do if I suspect I've been a victim of an online scam?
If you suspect you've fallen victim to an online scam, act quickly. Report the incident to your local authorities or the cybercrime division, providing all relevant information and evidence. If you've shared financial information, contact your bank or financial institution immediately to prevent further damage. Regularly monitor your accounts for suspicious activity and consider using identity theft protection services to safeguard your personal information.
Resources
(Interactive World Migration Report 2022 (iom.int)
(Remittances Grow 5% in 2022, Despite Global Headwinds (worldbank.org)
(Americans lost $40B to phishing scams in 2022, report finds (denver7.com)
(Crypto Investors Lost $3.5 Billion to Scammers in 2022, Privacy Affairs Study Reveals (yahoo.com)
