Electronic funds transfer or e-transfer is a quick and easy way to transfer and receive money. Normally, they are widely used without any issue whatsoever, but as with anything money-related, they can be a target for scammers. Leading to the question, are e-transfers safe? Can you get scammed through e-transfer?
You can get scammed using E-transfer through phishing emails, loans, apartment rentals, third-party transaction scams, online sales platform scams, etc.
There is nothing as painful as being scammed of your hard-earned money. The thought of starting all over again or the feeling of losing all that you have can drive you into acute depression. In this post, I have answered one common question regarding e-transfer. I have also provided beneficial tips to help protect yourself from an e-transfer scams.
Can You Get Scammed Through E-transfer?
Before we delve in, let’s begin by understanding what e-transfer is, including how it works.
An electronic funds transfer is a common method for sending money from one account to another via a computer network. Electronic funds transfers replace paper-based transfers and human intermediaries but offer the customer the ease of doing her banking.
Each time a banking customer uses her credit or debit card, whether at a physical point-of-sale or online, she is engaging in an e-transfer. Any preauthorized charge, like direct deposits or utility bills, also uses e-transfer.
Some services use e-transfers to develop a peer-to-peer payment environment. In such circumstances, the sender uses an application or website to signal that she wants to transfer money to a recipient. Often, this means transferring money from one bank account to another, but it can sometimes mean sending it to the service itself, where the recipient can withdraw the funds into her bank account manually.
Electronic funds transfers are protected by the usual personal identification number (PIN) or the login information that opens the customer’s online banking service. An automated clearing house (ACH) processes the payment.
With online banking, you can make your own EFTs. Open a savings account to begin!
Electronic Funds Transfer Example:
The most common type of electronic funds transfer is a direct deposit, in which an employee of a company preauthorizes her employer to pay her salary directly into her bank account. But, many other electronic funds transfers exist, including the following:
- ATMs
- Online peer-to-peer payment applications like PayPal and Venmo
- Wire transfers
- Electronic checks
- Pay-by-phone systems
- Online or mobile banking
How Does E-transfer Work?
An ETF transfer is often very easy. There are two parties: the sender of the money and the receiver. Once the sender makes the transfer, the request goes through multiple digital networks originating from either the internet or a payment terminal to the sender’s bank and then to the receiver’s bank.
A sender can be anyone, be it your employer, a business, or an individual paying a vendor for a service like water. Likewise, recipients can be employees, goods suppliers, retailers, and utility companies. Most payments are cleared, that is, complete, in the space of days.
Warning Signs of E-transfer Scams:
- The “buyer says they’ll transfer the money after receiving the product or service.
- The “seller” request payment before delivering the product or service
- They agree to buy or sell something fast, with no question asked or answered
- The “buyer” or ” seller” is rude, demanding, or unresponsive
Is It Possible to Be Defrauded Through E-transfer?
Of course, it is possible to be scammed via e-transfer. Scammers can scam you by sending you phishing emails. When you select the links from these emails and input your personal information like username, account details, PIN, and password, your account could be prone to scams.
So what do you do if you suspect a scam?
The first thing to do is immediately reach out to your bank or financial institution. Alert them to the situation and determine if you can recover your money after being scammed online. Ensure you cancel any recurring payments and consider placing a temporary block on any account that has been tampered with.
How to Protect Yourself From E-transfer Fraud?
You should always be cautious when sending or receiving money. To avoid e-transfer theft, adhere to these simple tips:
- Only send funds to those you know and trust, just as you would with cash. Never send money to strangers.
- Call the person requesting money to confirm their identity. Ensure you are sending it to the appropriate email account/ individual.
- Select a security question with an answer that is hard to guess. This means avoiding things such as names, birthdays, hometowns, etc. Don’t use anything that is guessable, especially those that can easily be guessed by scanning through your social media profile.
- Don’t include the security question’s answer in the e-transfer message.
- Always use a strong password that cannot easily be guessed or discovered, and ensure you share it through a secured channel. Create strong and unique passwords to protect your accounts, including your email and social media accounts. Don’t save any details on public computers.
- Be careful with suspicious emails. Ensure you don’t give out your personal information if you don’t know they are legit. Never automatically click on a link in an unexpected email or text message.
- Don’t call the phone numbers listed in unsolicited messages. If you are unsure if a message is legit, independently research the organization’s phone number or website and find out for yourself.
- Protect your email’s security—don’t stay logged in when you walk away from your computer; log out and ensure your device is secure and not left alone in public.
- Stop using e-transfers to pay for products and services. E-transfer is similar to cash transactions; it is difficult to dispute or refund them. If you are purchasing an item online, you have additional protection if you pay using a credit or debit card.
