Do you know which financial institutions are insulated from online frauds and scams? Well, to your utter surprise, there are none! From conventional to modern, various methods are available to send money across borders. Earlier, banks have always been considered one of the most secure financial institutions that most people used in the past.

Secure transactions are always the foremost concern for every overseas worker since people move abroad to earn better and send funds back home for financial support. Expatriates from developing states such as India travel to developed countries to seek better employment opportunities as they cannot find decent work in their native countries. Thus, they send money to India or any other country they belong to, and they primarily need secure channels for this purpose.

Growing cyber crimes and financial frauds have become uncontrollable as well as unbearable for people across the world. Bank frauds have swiftly inflated worldwide, where the Reserve Bank of India (RBI) reported 9,103 banking frauds in 2022 in India alone. As an overseas worker, you must be worried about avoiding such scams and what to do if you have fallen victim to one of such problems. Let’s figure out everything about banking fraud and how you can avoid them when you have to transfer funds to India from overseas regularly.

Taking a look at the economy of India is appropriate here.

Indian Economy

• India is the middle-income developing market economy
• It is the 6th largest economy in the world, with a nominal Gross Domestic Product (GDP) of $3.29 trillion
• It is the 3rd largest global economy in terms of Purchasing Power Parity (PPP) of $11.75 trillion
• Its GDP growth rate is estimated to be 8.2%
• The inflation rate in India is 6.07%
• The unemployment rate in India is about 7.60%

These statistics show that despite India's robust economy, it still cannot provide sufficient work opportunities to its massive population of over 1.4 billion. This is why Indian people go to developed countries to earn better and send money to India online for financial support through banks or many online money transfer companies, including ACE Money Transfer.    

Although the advent of many credible online companies has marginalised online frauds to substantial levels but exist, they still do. The one positive aspect of falling prey to bank fraud is that there are some chances of getting your money back in case of fraud. These chances are negligible, but banks still have some policies to compensate for your financial loss, unlike other institutions.

Let’s now try to understand bank fraud.

What is bank fraud?

The use of illegal means to deprive others of money, assets or property held for safekeeping by the banks is known as bank fraud. When a fraudulent person contacts you, pretends to be the representative of a bank or any other financial institution and obtains money from the depositors by applying different tactics such as asking for card details or account details, etc., it is also known as bank fraud. Bank frauds are considered criminal offences in every country across the world.

Fraud and scams can happen anywhere, yet making an online money transfer to India or any other origin country is much more reliable than conventional methods. Choosing an Authorised Payment Institution (API) such as ACE Money Transfer will protect you from financial fraud.

Let’s now look at some of the types of bank fraud.

Types of bank frauds

All of these frauds are also known as online frauds or scams. But, here, they are discussed with a narrow focus on banks.

Skimming device installation

In this fraud, the scammer will attach a skimming device to the ATM or any other machine on which you swipe your card. This skimming device steals the data from your card's magnetic strip that the scammer will use to steal your money.

Physical stealing of the card

If you are not careful enough in a store while shopping and take your eyes off the card you have given to the cashier for swiping, you risk getting it stolen by someone standing nearby and waiting to pray on your negligence or carelessness.

Phishing

In this scam, the scammer will trick you into believing you have received an email from your bank or a financial institution whose services you avail. The scammers deceptively get your personal information in the name of the bank or the institution. 

Intercepting mail

In this fraud, the scammers will steal your card from your mailbox even before you realise it is there. And after they have successfully stolen it, they can make fraudulent purchases.

Does the bank refund the lost amount?

If you fall prey to fraud, there is little the bank can do to guarantee a refund. Of course, the bank stands exonerated if you shared your sensitive information with a caller you believed represented your bank or clicked a link shared with you in a suspicious email; you can’t blame the bank for your negligence.

Send money to India online using a trusted service. You’ll have peace of mind with their security mechanism as they never process payments without authenticating from the original user.

Albeit, the presence of scammers and the uncontrollable growth of scams are absolute. However, the following are a few steps that can help you stay safe with your global money transfers.

Steps to stay safe from banking frauds in domestic or international money transfers

Whether you use banks locally or for cross-border transactions as an Indian expatriate, you can take a few steps to ensure protection. 

• Try to use an ATM installed inside the premises of a bank, as it will reduce the chances of losing your data via a skimming device.
• Cover your fingers and hand with your other hand or something as you type your PIN on ATM’s keypad
• Ensure you get alerted by the bank through text messages each time money is credited or any charges are deducted from your account.
• Report frauds immediately to the bank and other concerned quarters
• Keep yourself updated with the policies of your bank or the financial institution regarding theft protection, and in case fraud takes place
• Keep checking your account statement after each transaction you make
• Always use a secure internet connection while using online banking services. It is highly recommended not to use public Wi-Fi connections as they are not safe and thus expose you to the risk of online scamming
• Always properly shred your paper account statement. Of course, nowadays, paper statement trends are dying fast, but still, shred it if you happen to get one.

Steps for a hopeful return of funds in online frauds

It’s unlikely that you can get your money back, which an online thief has stolen or extorted from you through unfair means. Most of such cases happen during shopping and paying online, where locating and reaching out to scammers is never easy. Nevertheless, some platforms can offer help in this regard. You can consider these steps if you have faced such issues.      

• The best way is to contact the merchant or the website where the fraud occurred. If they agree to cooperate, it would mean less hassle. But do not have high expectations. 
• If the merchant or those responsible for the fraud refuse to cooperate, gather your records, including receipts and emails. But do it when you are confident that you have been duped. 
• You will have to prove this when purchasing electronics or jewellery from a site that you think is fake. Surf the product’s official website and find the list of authorised dealers. If the merchant is not listed, you may show it to the bank. If your product is damaged, you better take a photo or keep it as you received it until you show it as proof to the concerned quarters.
• Contact the card provider and put in a claim. Your service provider should have a customer service line so that you notify them when you realise that you have been scammed and deprived of your money.
  The point to understand is to not rely on the banks and await compensation after fraud. Instead, it is better to take appropriate measures elaborated above immediately. But before this, exercising care and caution is better to be safe. For a secure money transfer to India or elsewhere from overseas, choose a reliable service like ACE Money Transfer.