If you’ve ever received a payment from someone else and deposited the money in your account, you’ve probably wondered, “Is this transfer safe?” There are steps you can take to safeguard yourself from online fraud, regardless of your level of internet experience.
E-payment methods are not protected by the Financial Services Compensation Scheme (FSCS)
It’s no wonder, then, that these types of payments are increasingly at risk of phishing attacks, fraud, data breaches, and other threats. This is why Ria Money Transfer has rolled out an awareness campaign to help people understand the best ways to protect their funds.
The Financial Services and Markets Act 2000 introduced the FSCS as a way to compensate consumers in the event of a failed firm. While it can’t protect underlying investments, FSCS can cover savers if a financial firm fails.
Although the FSCS offers different compensation levels, the best way to determine which type of cover you should look for is to consult a pre-screening tool. You could be eligible for various benefits depending on the institution’s size.
The FSCS also carries out an awareness campaign to educate consumers about the safest ways to safeguard their deposits. In addition, those with savings accounts are advised to keep a record of their promises.
Scams involving online money transfers
If you are receiving messages from someone asking for money, there is a good chance you are dealing with scammers. They may ask you to wire them money or give them your bank account information.
Scammers often use online money transfer services to get the cash they need. Unfortunately, these services are untraceable, so tracking who receives your funds is challenging.
These schemes are becoming increasingly common. Some target people in a financial crisis or who have lost substantial money. Others target those looking for a quick way to get their funds out of the country.
The initial hook is often a fake emergency. The fraudster might call you, or you might receive a text message, or both. You can give them your bank account information or your credit card number.
Scammers are constantly trying to improve their methods of committing fraud. For example, in the case of incoming transfers, they will typically ask you to send a small sum of money and then disappear.
Digital wallets are safer than cash
Digital wallets are a safe alternative to using cash to make online payments. The data is encrypted, making it useless to thieves without a key.
Using digital wallets is also more secure than using credit cards. In addition to encrypting payment information, digital wallets don’t transmit the bank account numbers used to make purchases.
Another advantage of digital wallets is the fact that they can help you keep track of spending. You can view your spending history and set up automatic bill pay. You can also store and access loyalty cards and gift cards.
However, there are also security concerns with using a digital wallet. Your digital wallet may be hacked, and you could be a target if you use an unsecured device.
Most applications require you to input biometric data to prove your identity. Some apps also require you to enter a password to access your account.
If you’re worried about security, invest in identity monitoring services. These services can alert you to suspicious transactions in your digital wallet.