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5 Tips to Avoid Being Scammed When Using a Money Transfer App

5 Tips to Avoid Being Scammed When Using a Money Transfer App

Many people prefer sending money through a money transfer app on their smartphones to writing a check. This method is convenient, fast, easy to use, and more so right now during this COVID-19 pandemic, it becomes a reliable way to send money. It is better than coming in contact with people while at the bank. But it has not always been smooth for everyone because of one major factor - fraudsters.

There is an increasing amount of fraud in mobile app payments. The fraud has become higher than the traditional payment methods. One in five people has lost money due to scamming. The money transfer app method is attractive to scammers because it does not offer the same level of fraud protection compared to debit and credit cards.

Mobile payment apps are instant in cash transactions. The con is that it's hard getting the money back once you have sent it. Therefore, you have to double-check before hitting the send button. The app you use to transfer money greatly determines if you have higher or lower chances of losing cash when scammed. Here are 5 tips to avoid being scammed:

Only Send Money to People You Know

To avoid sending money to the wrong person, make sure you have the correct phone number or email of the person you are sending the money to. A misspelled email or number transfers your cash to another receiver. Once you send money to the wrong person, it becomes hard to reverse it because they can withdraw the money instantly.

A money transfer app you use for money transactions should be one that is familiar and legitimate. It should be one that is available on the app store. That helps you avoid installing unverified apps that can easily make you lose your money. 

A money transfer app will never send you an email or call you asking for your credit card details or user ID and password. In Case you receive such a call, do not give them your details. They are scammers. Block that number immediately and report it as spam.

Enable Security for A Money Transfer App

Due to the rise in the number of cybercriminals, a money transfer app you are using should always have features like multi-factor authentication. It is a security measure that requires multi credentials so that your identity can be verified. This will enable you to access your account safely.

The information required while logging into the money transfer app is more likely that the hackers do not have. Biometrics like fingerprints and facial recognition are some of the credentials needed while logging in. It is impossible that a hacker will have the same fingerprint or facial features as you. Even if the hacker has your name and password, they will still not access your account due to the presence of multi-factor authentication. Hence, making it effective for protection.

That does not mean that you should share your password with anyone. Never give out personal and financial information to anyone beyond the necessary details needed for the transaction.

Link a Money Transfer App to Credit Card

You need to link your money transfer app to a credit card and not a debit card or bank account. This is because credit cards are the most secure payment method to use when shopping online. It uses security features like encryption and it monitors fraud so as to keep your accounts and personal information secured.

In case of fraudulent money transactions charged to your credit card, you will have zero fraud liability coverage. Therefore, you will not pay even a cent for the fraud transactions. That is the advantage of linking a money transfer app to a credit card for it offers online security against scammers.

Check completion of the money transfer

Before making any money transfer always beware of how scammers tell you to pay. They tend to insist you pay with a gift card. They prefer gift cards because they are easy to find and buy. Compared to credit card payment options, gift cards have lesser protection. This makes scammers able to get quick cash and remain unknown. The transaction is also irreversible.

After ensuring it's not a scam, you can go ahead and make the payment and even check the status of your money transfer.

A money transfer app offers the service option of checking the status of your money transfer on their website. All you will need is your name and the tracking number. Once the money transfer is completed, the receiver can get the money.

Have Security on your Smartphone

Ensure your smartphone has a strong password to avoid anyone accessing it and transferring money. If you misplace your phone or even leave it lying around the house or the office, it will be hard for anyone to gain access to it if secured.

Final thoughts

A money transfer app should make your life easier, but it can also make your life hell by falling into the hands of scammers. Every individual is prone to phishing from online fraudsters. The good thing is we can easily evade them by being keen and following the above tips.

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