What Are the Risks of International Money Transfers? | FlashFX
While the business of making international money transfers is generally considered safe, it is not without risks. Here's how to ensure your money stays safe when transferring overseas.
International wire transfers are one of the most efficient ways to send money overseas. Everything is done electronically, with banks in the network communicating with each through automated messages to get your money from A to B.
While the business of making international money transfers is generally considered safe, it is not without risks.
How to keep your money safe when transferring overseas
It starts with you. Following these simple guidelines is an easy way to ensure that your money will stay secure.
• Never transfer money to someone you don’t know. With international money transfers once the money has arrived in the receivers’ account it is very difficult get it back in the event of a problem.
• Choose a reputable overseas money transfer service. One easy way to tell is to check that a company licensed and regulated by the appropriate government bodies. In Australia this would be ASIC and AUSTRAC. More on this later.
• If you are making a payment to an overseas business supplier, verify the identity of the company and personnel prior to sending the funds. Check their business registration number, company directors and any other publicly available records to ensure you are sending money to a verifiable legal entity.
• Protect your data and information. Keep your passwords and security details in a safe place so no one can access your online accounts. Never make secure transactions, including international money transfers, over an unsecure WiFi network.
Choose a reputable international money transfer provider
People often take a very simplistic approach when deciding what company to use to send money overseas. Don’t assume that all non-bank and bank currency exchange providers are equal when it comes to security.
Before going through with a currency transfer, make sure to check whether or not this business is licensed and regulated in the appropriate jurisdictions. You can search the Australian register to see if the money transfer specialist is licensed by the Australian Securities and Investment Corporation (ASIC).
Companies that are authorised typically afford a higher level of protection as they have an obligation to safeguard clients’ money by keeping it separate from company funds.
Watch for Scammers
Anytime someone asks you to wire money to them this should raise a red flag. If you have received a call or email from someone you don’t know offering you a great investment or a too-good-to-be-true loan, be wary. Scams come from companies operating both overseas and within Australia.
Many overseas scammers target Australians because ASIC does not have international jurisdiction to investigate and prosecute them in the event they are discovered. If someone contacts you from overseas there should be public record of their company's registration. . By doing some simple Googling you can see if they are a legitimate enterprise or not.
Is it safe to send money overseas with your bank?
Using your bank to send money overseas will not necessarily mean that your transfer is safer and it could cost you a lot more.
Banks charge as much as 5.0% to convert your Australian dollars to foreign currency, and that doesn’t include transaction fees. Poor foreign currency exchange rates are where banks make the bulk of their money from international transfers. These costs are typically not declared upfront. When transferring large sums this can add hundreds of dollars on to the cost of your transaction.
FlashFX is a fair and transparent international money transfer company that is giving Australians a better alternative to the banks. With zero transaction fees and transparent exchange rates, you will always know the total cost of your transfer upfront when using FlashFX.
Worried about security? Rest easy. FlashFX is licensed and regulated by ASIC and AUSTRAC, so you can trust us to protect your money every step of the way.
Send money securely today. Signup to FlashFX or check out our website for more information.