How to Avoid Getting Scammed When Sending Money Overseas?

Sending Money

We often send money overseas to our family, friends, or businesses in other countries. But scammers are now tricking people out of money with the help of technology, more than ever before. Scammers are now reaching their targets through social media, phones, and emails. Consumers will have lost over $8.8 billion from scams and frauds in 2022. The number of scams continues to increase with the development of technology and payment platforms. Therefore, it is crucial to identify these scams, as you would typically lose this money for good.

This article discusses the red flags of scams and offers tips and strategies for avoiding them.

The Various Risks of Scams

There are many forms of scams, such as online marketplace scams, investment scams, real estate scams, overpayment scams. These are only a few common schemes that can be seen. Scammers often urge you to act quickly by using high-pressure tactics.

There’s no way that you can reverse a transaction easily once it’s been processed. Scammers often prefer money transfers for this reason. Since money moves fast, once it’s gone, it cannot be recovered easily.

Types of scams:

  • Money Transfer Scams: In these types of scams, scammers manipulate individuals into transferring money. They may promise a profitable return for fake investments or may ask for an advance fee from you. 
  • Phishing Scams: In these types of scams, scammers act as trustworthy entities while attempting to obtain sensitive information, such as usernames, passwords, and financial details. 
  • Fake Online Businesses: Scammers create fake online businesses that offer attractive deals to lure us into transferring money. They may sell fake products or services under their business.

There are many scams targeting money transfers abroad. That is why you have to stay alert and cautious and do your homework before transferring money. This will reduce the chances of you getting scammed.  

Tips for Avoiding Scams

The good news is that you can always protect yourself and avoid money-transfer scams. The following are some actions that you can take: 

  • Conduct thorough research on the recipient and the money transfer service before sending any money. It is crucial to research both the recipient and the service provider when transferring money.
  • Verify the recipient’s identity and contact information through multiple sources: You can avoid getting scammed by confirming the recipient’s identity and contact details from various sources. This ensures that the money is going to the right person.
  • Use reputable and well-known money transfer services, and avoid wire transfers if possible. Selecting established and reputable money transfer services can reduce the risk of getting scammed. You can also add an extra layer of protection by avoiding irreversible wire transfers.
  • Be cautious of random requests for money, even if they appear to be from a trusted source. Scammers may act as trusted organizations to deceive individuals into sending money. You should always verify the reliability of any unexpected requests for money.
  • Keep personal and financial information secure and confidential. Protecting your personal and financial information will help prevent identity theft and fraud. You have to avoid sharing sensitive details with unknown individuals or institutions to protect yourself from these scams.
  • Monitor financial accounts regularly for any suspicious activity. Regularly monitoring financial transactions and account statements can help detect any unauthorized or suspicious activity. This assists you in addressing the fraudulent attempts on time.  

Red Flags of Scams

When sending money overseas, it’s important to be aware of the common warning signs of scams. Following are the most common ‘red flags of scams’

  1. Unsolicited contacts
  2. Requesting an upfront payment or
  3. personal information
  4. Promising large returns
  5. Claiming that the transaction must happen immediately
  6. Providing limited time to act
  7. Unusual payment methods that are difficult to trace

What to Do If You’ve Been Scammed

If you’ve been scammed when transferring money overseas, it’s important to take action immediately. You need to protect yourself and your financial information by following the necessary steps. The following are actions that you can take.

  • Contact your bank or financial institution: As soon as you suspect you’ve been scammed, contact your bank or financial institution to report the fraud. They can help you secure your account and prevent any unauthorized transactions.
  • Report the scam to the authorities: You have to report the scam to the local authorities in the country where the scam occurred, as well as to your local law enforcement agency.
  • Contact the money transfer service: By reaching out to the money-transfer service you used, you can now recover your funds. But this might not be possible in some cases. By reporting to the money transfer service, you can get the necessary information that can help investigate the scam.
  • Monitor your financial accounts. You have to monitor your financial accounts for any suspicious activity. This enables you to identify unauthorized transactions and report them to your bank or financial institution.
  • Consider legal action: You can also receive consultations from a lawyer in case you lose a large sum of money. They will guide you through the legal actions that you can take.


In today’s digital world, more and more people are getting scammed when transferring money overseas. But there are steps you can take to keep your money and information safe. Having a good knowledge of common scams and strategies to overcome them will prevent you from becoming a victim of such frauds. It is also important to select a trusted and secure money transfer service.

At Tech Remit, we provide money remittance software solutions supported by a robust cloud platform for secure and accurate money transfers. We offer white-label remittance software solutions for secure cross-border payments, real-time transaction processing, smooth ecosystem integration, mobile wallet support, various security and compliance features, automated AML and KYC integration, and other features necessary for speedy remittance operations.

Also Read : How Can AI Safeguard Remittance Transactions From Fraudulent Activities?

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