Sending money to India is common for expatriates, digital nomads, and businesses supporting loved ones or making business transactions. However, with the rise of digital transactions, fraudsters have found new ways to exploit unsuspecting individuals and businesses.

In the first nine months of 2024, India experienced approximately ₹11,333 crore (roughly $1.3 billion) in losses due to cyber scams. There was a significant increase in digital payment fraud and OTP scams.

In light of these overwhelming statistics, one must be careful when sending money to India. Understanding the common scams and how to prevent them can help ensure that your hard-earned money reaches its intended recipient safely.

In this article, we highlight common scams and how to avoid scams when sending money to India

Common scams and how to avoid scams when sending money to India

When sending money to India, these are the common scams, and how we can avoid them.

1. Phishing scams

Phishing scams involve fraudsters impersonating banks, money transfer services, or government officials. They trick individuals into revealing sensitive information such as passwords, OTPs (One-Time Passwords), or bank details. They often send emails or messages with fake links, leading to fraudulent websites.

How to avoid it: Never click on unsolicited links. Verify the sender before sharing personal information. Ensure you always log in to your financial accounts directly through official websites or apps.

2. Fake money transfer services

Scammers set up fraudulent websites or social media accounts claiming to offer fast and cheap money transfers. They lure victims with extremely low exchange rates and no fees but disappear once the money is sent.

How to avoid it: Use well-known and trusted remittance services. Grey offers a secure money transfer platform that protects your data and funds. Always check online reviews and verify the company’s legitimacy before making a transaction.

3. Advance fee scams

In this scam, fraudsters claim that you need to pay a processing fee, tax, or customs duty before your funds can be transferred. Once the fee is paid, the scammer disappears. Of course, no money is ever transferred.

How to avoid it: Legitimate money transfer services do not require additional upfront fees beyond standard transfer costs. Always check with your service provider before making any payment.

Read also: How to open US, UK and Euro bank accounts in India

4. Identity theft and account takeover

Hackers may gain access to your bank or money transfer accounts and initiate unauthorised transactions. They do this through malware, weak passwords, or leaked credentials.

How to avoid it: Use strong passwords, enable two-factor authentication (2FA), and regularly monitor your bank statements for suspicious transactions. Opting for a reliable payment platform with robust security features like Grey helps to avoid this scam.

5. Investment and lottery scams

Fraudsters often pose as financial advisers or lottery officials, claiming you have won a prize. They might have an investment opportunity requiring an initial payment before you can receive your funds.

How to avoid it: Be cautious of unsolicited investment opportunities and lottery winnings. If something sounds too good to be true, it probably is. Verify any claims with relevant authorities before making payments.

Best practices to protect your money when sending funds to India

Here are some more tips to protect your money when sending funds to India.

1. Use reputable money transfer services – Stick to well-established services with secure payment methods and customer support.
2. Verify recipient details – Double-check the recipient’s name, bank details, and contact information before sending money.
3. Avoid public Wi-Fi – When making transactions, use a secure network to prevent cybercriminals from intercepting your data.
4. Monitor transactions – Keep records of your transfers and check your statements for unauthorised activities.
5. Stay informed – Follow news on emerging scams and educate family members on safe money transfer practices.

Read also: Grey vs. local banks: The best way to exchange currency in India

Avoiding scams when sending money to India with Grey

Opting for a reliable payment solution with robust security features will protect your data and funds. Here is how Grey ensures your safety.

• Advanced encryption: Grey utilises advanced encryption technology to safeguard user data from unauthorised access. It prevents being accessed or shared by third parties.
• Strong password requirements: Users are required to set strong passwords to enhance account security.
• Two-factor authentication (2FA): Grey implements 2FA to add an extra layer of security to user accounts.
• Constant system monitoring: Grey’s experts continuously monitor the system to detect and prevent suspicious activities that could compromise user accounts.
• PIN on the mobile app: Users are required to set a four-digit PIN with their email and password after signing in on the mobile app.
• Tracking devices and sessions: Grey allows users to track their logged-in devices and sessions to ensure account security and prevent unauthorised access.

Pro tip: Read this to learn how to track devices and sessions on your Grey account

• Information Security Management System (ISMS): Grey has implemented an ISMS aligned with ISO/IEC 27001 standards to ensure information confidentiality, integrity, and availability.

Read more about Grey’s information security policy

• Compliance with regulations: Grey is committed to safeguarding sensitive information in compliance with all relevant laws and regulations, including ISO 27001:2022.
• Proactive risk management: Grey uses a proactive risk management framework to identify and mitigate information security risks.
• Employee training: Grey provides robust security training to all employees to foster awareness and compliance.

Secure transactions with Grey

While sending money to India can be convenient, it is essential to remain vigilant against scams. By recognising common fraud tactics and following best practices, you can safely ensure your funds reach their intended destination. Always prioritise security and use trusted channels for international money transfers.

Sign up with Grey today or download the mobile app to enjoy secure international payments to India.

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