At A Glance
It is important to understand the risks of sending money internationally before making a transfer. An international money transfer is sending money outside domestic boundaries. It can be for varied reasons, such as supporting a child’s education, facilitating business transactions, or enabling a family’s survival.
Money transferred to India has reached high records with $36 billion flowing into the country in the last month of 2024 (Source: Economic Times). As per the World Bank, India’s remittances to India accounted for 14.3% of global remittances in 2024 (Source: Vision IAS)
Though the number is increasing, an unsaid fear of fraud always prevails when sending money internationally. The market is flooded with several financial service providers for international money transfers, so you must evaluate platform fees before the transaction.
When sending money internationally, every extra dollar spent could be a loss. Cross-border transfers come with financial, security, and compliance risks.
Wary of What to Do in Such a Situation?
Read this blog to understand the threats of international money transfers, such as fluctuating exchange rates, high charges, regulatory issues, and unreliable service providers. To learn how to avoid them, read this blog for details.
Let us read each challenge one by one.
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1. High and Hidden Fees
a. Transfer Fees
Most money transfer providers charge a fee for every transaction. This could be a flat fee or a percentage of the transfer amount, depending on the destination and speed of delivery. In case of urgent transfers, the fees can be huge.
b. Exchange Rate Markups
Many services offer unfavorable exchange rates instead of mid-market rates. Sometimes, a small markup of 1%-3% can add up, especially if you make frequent transfers or send large sums of money.
c. Receiving Fees
Not just for sending money, in some countries, money transfer service providers levy charges even for receiving it. In the same way, if the recipient collects money from the cash pickup location, service fees may apply.
2. Fraud and Scams
a. Phishing and Impersonation
Most of the time, scammers pretend to lure you with exciting offers. They ask for your details and request that you share your OTPs. These scammers also pretend to be friends, relatives, or official representatives, urgently requesting funds. You may receive such requests through email, social media, or fake websites.
b. Fake Money Transfer Services
Check for platform authenticity. Some unlicensed platforms may attract your attention with the “zero fee” promise, but they are only there to steal sensitive banking details or money.
c. Social Engineering Attacks
In other common cases, the platform may trick you into believing they will return the money they owe. In these attacks, the scammer may also assure you that the prize money will be deposited into your bank account. The first rule to handle this is to ignore and block such platforms!
3. Incorrect Recipient Details
Ensure the account details are correct before you hit the transfer button. Because entering an incorrect name, payment method, or account number can result in delays or total loss of funds. Many transfer services don’t offer refunds once the transaction is processed, even if it was a genuine mistake.
4. Delays in Transfer
No matter how much these financial service platforms advertise instant transfers, delays can still occur due to:
- Banking holidays in the sending or receiving country
- Anti-money laundering (AML) or Know Your Customer (KYC) checks
- Currency conversion holds or mismatches
a. Impact on Emergencies
If you’re sending money for urgent needs like medical treatment or rent, these delays can create significant problems for the recipient.
5. Currency Volatility
Exchange rates fluctuate frequently. So if a transfer is delayed or held, the actual amount received may be lower than expected. This risk is higher when dealing with cryptocurrencies or planning high-value remittances.
6. Regulatory Restrictions
a. Government Sanctions or Local Restrictions
Some countries restrict foreign remittances or block funds from specific nations due to political sanctions.
b. Blocked or Frozen Transfers
Financial institutions might hold or reverse a transaction if it’s flagged as suspicious under AML laws, even if it was legitimate.
7. Security Breaches and Data Theft
Using public Wi-Fi or unsecured devices during a money transfer can expose personal and financial information to hackers. Unverified mobile apps may also leak data or have security vulnerabilities. So, make sure you do not click on random links or apps!
8. Recipient Access Issues
a. Lack of Bank Access
It gets difficult for the recipients who live in remote or underbanked areas. They may not have access to a traditional bank or ATM, making it hard to collect funds.
b. Digital Illiteracy
Not all the recipients may be tech-savvy. Even if they understand the gadgets, they might lack an understanding of the language. This can add to their struggle to access or use funds received through digital wallets or mobile apps.
9. Lack of Customer Support
Poor customer service can be another pain in the head!
Resolving the issue can be frustrating if something goes wrong during a transfer. A robust customer support team can significantly help in this situation.
Long wait times or inadequate help can increase financial and emotional stress.
Read Related Blogs: Transfer Money Globally Without Fees Using Gift Cards: A Complete Guide
How to Reduce the Risks of International Money Transfers
Use Reputable, Regulated Platforms
Always choose licensed and regulated money transfer services- look for platforms registered with recognized authorities such as FinCEN, Beem, Revolut, and Wise in the US or relevant regulators in your country or the recipient’s country.
These platforms must comply with strict anti-money laundering (AML) and counter-terrorism financing (CFT) regulations, which protect your funds and personal data. Check for evidence of licensing on their websites, and verify their credentials with the regulator if in doubt. Review user feedback and ratings for insights into reliability and customer service.
Be mindful of offers that promise unusually low fees or high exchange rates. Rule: Suspect the fishy and then decide. If a deal sounds too good to be true, it probably is and could be a scam.
Double-Check Recipient Details
Before sending money, meticulously confirm all recipient details, including the account number, full legal name, bank name, and payment method. Even a small error, such as a misspelled name or incorrect account digit, can result in funds being delayed, lost, or sent to the wrong person, and such mistakes are often irreversible.
Always verify the information directly with the recipient, and consider using a test transfer (a small amount) for large or first-time transactions to confirm that all information is accurate.
Some service providers must offer additional verification tools. Always confirm details with the recipient’s bank for extra peace of mind.
Understand the Full Cost
International money transfers often involve multiple fees: upfront service charges, exchange rate markups, and sometimes hidden costs like intermediary bank fees or currency conversion charges. Use online fee calculators from reputable platforms to estimate the total cost before confirming the transfer.
Compare several platforms, not just on fees, but also on the exchange rates offered, as slight differences can significantly affect the amount the recipient receives. Read the fine print to ensure there are no surprise deductions.
Avoid Public Wi-Fi During Transfers
Never initiate money transfers over public or unsecured Wi-Fi networks, as these are vulnerable to cyberattacks and data theft. Always use a secure, private internet connection. Enable two-factor authentication (2FA) on your account for an added layer of security.
This requires a second verification step (such as a code sent to your phone) before any transaction can be completed, making it much harder for unauthorized users to access your funds. Look for platforms that use encryption and advanced fraud detection systems.
Educate the Recipient
Ensure the recipient understands how and where to collect the funds, whether through direct bank deposit, cash pickup, or mobile wallet transfer. Inform them about any identification or documentation they may need to present and clarify what fees or deductions (if any) might be applied on their end.
This helps avoid confusion, delays, or disputes.
If you’re sending money to a country with specific regulatory restrictions, make sure the recipient knows what to expect during the process.
Conclusion on Risks of Sending Money Internationally
International money transfers are more accessible than ever, but they come with notable risks—the most prominent being hidden fees, fraud, transfer delays, and data security.
Be aware and prepare yourself with all the information required for international money transfer. Seek maximum information about the service provider, like reading the reviews, double-checking all details, and verifying legitimacy. Be cautious to protect your funds and ensure a smooth, secure transfer experience.
Beem simplifies global money transfers with zero fees, instant delivery, and flexible options like gift cards, debit withdrawals, and digital wallets. With Send Now, Pay Later™, users can send funds immediately and manage payments on their terms—making Beem a trusted, secure choice for hassle-free international transfers.
