EU to tighten money transfer rules to prevent online fraud

In an effort to thwart the surge in cybercrime and various other forms of online fraud, the European Banking Authority has announced that internet-based payment service providers will be required to improve their general security procedures by August of 2015. As a follow-up to this statement, the EBA has published a series of ‘minimum security guidelines’ that must be met by payment service providers in each of the EU’s 28 member states.

Examples of these reforms include a new mandate which states that these service providers improve the verification standards present in their systems in order to ensure that customers are properly authenticated before carrying out their payment. Additionally, the EU has announced that they will be revising their Payment Services Directive in order to improve the general consumer experience as well as provide a more secure and competitive environment in which payment service providers will be compelled to enhance their services in order to maintain a positive relationship with their customers. These new guidelines will likely be initiated in 2017.

It seems as if the EU’s efforts to thwart online fraud and misuse of money transfer software could not have come at a better time. In 2014 alone, the losses created by money transfer software was approximately $975 million dollars, a 21% increase over the previous year.

Whether or not these new guidelines will truly make the positive impact outlined by the European Banking Authority has yet to be seen. What is likely, however, is that the topic of cybersecurity and cybercrime prevention will become much more commonplace than it is now which is, in itself, a huge step forward for the European Union. As evidenced by the recent £650 theft allegedly perpetrated by Russian hackers, there is a massive need for online security reform. The damage caused by these crimes is very real and is likely to pose a serious threat to future EU growth unless it is confronted now.

More information concerning the outcomes of this legislation, as well as coverage of the reforms being outlined to the Payment Services Directive, is likely to be offered in the upcoming months.

Woman receives counterfeit money from Shop

If there has ever been any doubt that the world of currency exchange has its own fair share of crooks and conmen, a recent breaking story emerging out of Oldham is likely to encour-age many to reconsider their assumptions. According to Pauline Westall, a currency ex-change shop located in Oldham Town Centre gave her €600 worth of counterfeit notes when she visited to prepare for a holiday adventure to the Mediterranean.

A scenario that is likely to cause as much financial trouble as it does embarrassment, Westall described her experience as shocking and completely unexpected. After visiting a Debenhams, Westall was told that the bills in her possession were forgeries. No legal action was taken against Westall, of course, given the fact that it was impossible for her to counter-feit the money on her own accord. That being said, perhaps the more worrying assumption that can be made following this incident is that a growing number of individuals who aren’t consistently vigilant are being sold counterfeit bills by their local money exchange without their knowledge. In the best of scenarios, the money exchange shop would simply acknowledge their error and reimburse the client for the money they had originally ex-changed. This, however, is not the experience that Westall has had up to this point.

To this day, the money exchanger shop she visited, which is called The Money Shop, has yet to reimburse her for the money she gave them. When asked for a statement regarding the situation, Westall stated, “This is just a nightmare. The money was always to cover my trip to see my brother and now there’s a chance I will be out there with no money. This could now possibly ruin two trips.’

Following the ensuing controversy regarding the situation, The Money Shop issued their own statement on the matter, stating, “‘We are investigating to see whether the notes concerned came in a batch supplied to us by our regular, reputable wholesaler and in turn to the customer. Should they have done so, The Money Shop will of course consider compensating Ms Westall.’

International Money Transfer Trends Revealed

Given the fact that the 21st century continues to become increasingly interconnected thanks to digital and internet-based technologies, it should come as no surprise that the rate of international money transfer has expanded in kind. The international money transfer industry has blossomed as both professional and personal use of these particular services has experienced healthy growth over the last decade.

That being said, very little attention has been devoted to developing a comprehensive survey of international transfer trends until now. Recently, researchers from Azimo, a popular money transfer service, compiled a series of data points and metrics related to the contemporary world of international money transfer for presentation at the upcoming World Money Transfer day. While some of the information presented will most likely be expected, readers may be surprised by particular snippets of data included in this survey.

Take, for example, the current trends amongst individuals between the ages of 18-34 when engaging the help of a money transfer organisation. Although this generation is commonly considered to be the most “plugged-in” in all of history, the majority of those polled stated that they would first approach a bank for their international money transfer needs before using an online service.

It was also discovered that 85% of those polled believed that anything higher than a 2.4% commission fee was “unfair”, sentiments that seem rather curious considering the fact that the vast majority of global corporations engaging in international money transfer currently charge between 8-10% commissions on all exchanges.

Perhaps a more expected observation could be the fact that the number of money transfer transactions requested through mobile devices in 2015 more than doubled over the previous year. This, of course, coincides directly with the rise in e-commerce and mobile web browsing that is fast replacing desktop computers and other bulkier devices.

Ultimately, curious individuals who are eager to learn more about the current state of international money transfer will likely find that this new report is truly comprehensive. Those who make it their business to stay abreast of international money transfer news would do well to peruse a copy at their earliest convenience.

£1.3bn settlement for banks

Justice, it seems, has finally been served regarding the various accusations of foreign ex-change fraud levied against UK banking institutions. US investors have scored a substantial victory in this particular struggle, securing nearly $2 billion dollars in settlements following the outcome of a recent legal battle. The banks included in the court decision include HSBC, Barclays, BNP Paribas, Bank of America, JP Morgan, Citibank, Goldman Sachs, RBS and UBS.

Although this depth of financial restitution is quite significant, the legal team representing the victims of FX fraud are declaring this the beginning of a longer battle. According to Michael Hausfeld, an attorney involved in the case, “”While the recoveries here are tremendous, they are just the beginning…Investors around the world should take note of the significant recov-eries secured in the United States and recognize that these settlements cover a fraction of the world’s largest financial market.”

Unfortunately, the world of foreign exchange market trading has gained infamy in recent years for its ethically dubious dealings. Given the fact that over 5.5 trillion pounds sterling trades hands in this marketplace on a daily basis, it should come as no surprise that many less-than-savoury characters are attempting to gain a foothold here in order to reap lucrative rewards, regardless of the legality of their actions.

As of right now, the individual fines levied against specific banks involved in the court deci-sion have yet to be determined. Suffice to say, it is likely that these penalties will be severe enough to make an example for others who may be so inclined to cheat the system again. More information about the specific outcomes of this trial will likely be made available in up-coming weeks as the district judge finalises bank-specific restitution policies.

Until then, the FX market continues its frenetic, near round-the-clock activity. For those who may be interested in investing in this marketplace, it is important to remember that transparency and regulation has never been, nor likely will they become, as prevalent as can be found in more popular stock exchanges. That being said, the promise of immense wealth is likely to continue to draw new investors into this competitive environment for the foreseeable future.

How to save money on currency transfers

International money transfers are an essential element of daily living for a large number of foreign nationals and migrant workers living outside of their native country. In the United Kingdom, for example, there exists a sizeable population of individuals who have arrived here from a kaleidoscopic array of international destinations, ranging from Africa to Asia. These individuals regularly engage in international money transfers with friends and family abroad. That being said, these services can prove to be quite expensive for those who have yet to discover optimal methods for transferring currency at minimal cost.

Although banks are often considered a “go-to” resource for money transfers, these institutions are often guilty of charging lofty service fees on international currency deliveries. Because of this, individuals who are planning on scheduling international currency transfers on regular basis are strongly advised to seek out alternative opportunities to do so.

One of the more popular international money transfer services available to UK citizens is the Telegraph International Money Transfer Service, offered in collaboration with moneycorp. Thanks to affordable transfer rates and an outstanding reputation for service, the Telegraph International Money Transfer Service has quickly been elevated to start status amongst those who engage in international transfers regularly.

The amount of money spent on transfer fees and service charges related to international money transfer on an annual basis is staggering. The issue has become charged enough for accusations of predatory business practices to be levied against some institutions, particularly those who have been found to prey on otherwise unknowing migrants and foreign nationals.

Ultimately, those who are in the process of seeking out an international money transfer service for their next transaction are highly advised to spend the time needed to research all available options before committing to a specific service provider. The chances are good that,with a small amount of time, a more rewarding and cost-efficient offer can be found which will ensure that international money transfers remain beneficial to both sender and receiver. More information about the Telegraph International Money Transfer Service, as well as other affordable, highly successful international money transfer companies can be found on the websites of the companies in question.

12 Ways how mobile money can go further

As mobile phone coverage continues its inevitable crawl across the world’s continents, experts are largely in agreement that mobile payment platforms will soon become the de facto “bank” for individuals living in areas which are either underserved or have a historical precedent for shaky financial infrastructures.

That being said, mobile payment systems cannot simply be established over night. These programs require extensive development, planning, and, most importantly, strategization in order to ensure that the “next best thing” won’t be replaced when a newly minted payment platform jumps online.

After a series of conversations amongst tech innovators regarding what exactly should be happening in the world of mobile payment systems, 12 strategies emerged which all parties agreed are quite integral on the path towards seamless mobile integration. They are as follows:

Trust must be established, particularly in areas of the world where corruption and crime are rampant.
The need must exist. Not every individual in the world needs the service offered by an international money transfer service.
The real world is just as important. In the event of questions or conflicts, individuals must be able to speak with a real-world representative.
Education is everything. In order for these systems to flourish, individuals must first understand how to use them properly.
Every country is unique, and every country presents its own sets of challenges and opportunities.
Regulations limit progress, particular in situations where oversight is slowing the path of development.
Agents are essential, particularly when spreading the message about new services in less developed regions.
Financial services are only the beginning. Utilities and other resources may soon follow.
The customers needs must clearly be defined in order for a system to truly flourish.
Advertising and marketing remain critically important tools, regardless of where you are currently expanding your services to.
The sign-up process has to be incredibly easy.
Interoperations are a must, particularly in areas of the world that are culturally and ethnically diverse

With these ideas in mind, business owners seeking to expand their money transfer operations into new regions of the world may be able to find success at a faster rate than they would have previously.

Why Facebook has entered the money transfer market

For both casual and serious Facebook users, it’s common knowledge that this particular social media platform has a habit of changing design and user interface elements on a regular basis. Recently, Facebook launched one of the most significant evolutions of its platform to date – the introduction of a money transfer service which allows individuals to quickly send cash to one another at the touch of a button.

Experts have engaged in intense speculation as to what exactly Facebook’s motives may be. After all, money transfer has become a highly competitive domain which is already populated by industry heavyweights such as PayPal. Perhaps anticipating the statements that critics would be quick to make, Facebook has stated that their new transfer services are highly secure, featuring some of the most state-of-the-art encryption and security protocols in existence today.

Believe it or not, this is not Facebook’s first experience with online payments. The company has long provided users with the ability to store their credit card information on file in the event they wished to purchase a game or other “perk” within the social media platform. Essentially, the new money transfer system is simply an evolution of what already exists. Facebook is not alone in their attempt to secure a piece of the highly lucrative e-payment marketplace. Over the past year, Apple and Google have also launched their own payment systems which feature similar functionality and transfer-related features.

It remains to be seen as to whether or not this new system will make a serious impact on the current money transfer industry. Given the fact that Facebook remains one of the world’s most profitable and in-demand companies, it is likely that Facebook’s newest addition to their platform will be given the financial and technical support it needs to flourish. It’s also important to note that Facebook’s money transfer systems could also be quickly implemented into the WhatsApp platform, considering the former now owns the latter after a recent $22bn purchase.

Those who are interested in learning more about this particular development can read more on Facebook’s official website. It will be quite interesting to observe how this system develops in upcoming months.

‘Rip off’ money transfer companies under threat in the UK

It is estimated that nearly 10% of the world’s population currently sends money to relatives and loved ones in other countries. Knowing this, it is perhaps easy to understand why so many money transfer companies have sprung up in cosmopolitan cities such as London, and why so many individuals have become outraged by the prices they are being charged to send this money.

According to recent statistics, the annual sum of remittances sent from the UK to locations around the world totals in excess of 15 billion pounds. Over 66% of these funds are sent to developing countries. According to the World Bank, the total sum of remittances in 2014 will equate to well over 278 billion pounds.

The lofty fees that many of these money transfer companies are charging for the arrangement of currency delivery has sparked outrage amongst citizens and politicians alike. Labour MP Tessa Jowell has recently launched an investigation into several of these predatory establishments, stating, “Many people who are trying to support friends and family abroad are being ripped off. Instead of their hard-earned money going towards medical bills, books or to cover the cost of failing crops, huge amounts are being creamed off by the giant money transfer companies who have cornered the market.”

Jowell is hoping to gain support for new legislation which, if enacted, would force local money transfer services to cut their fees by half during the months leading up to Christmas, as this is typically the peak time for individuals to send money to loved ones abroad. It will be interesting to observe how the target companies respond, as this is typically one of the most profitable times of the year for them.

According to Scott Paul, a senior humanitarian advisor for Oxfam, the need for new reforms in this particular market are absolutely necessary. “People all around the world depend on help they receive,” Paul stated, “and remittances are a critical part of their efforts to overcome poverty.” Whether or not these desired changes will be enacted has yet to be seen. What can be certain, however, is that awareness of this particular issue has increased dramatically.

Making the most of your money through multi-currency cards

The world of international travel and business has changed dramatically in recent years. Whereas, in previous decades, business owners could expect to engage in a few, if any, international money transfer transactions or exchanges throughout the year, this particular service has become an integral element of small, medium and large-sized enterprises across the globe.

In fact, a growing number of businesses are now dealing in multiple currencies simultaneously, largely due to opportunities for outsourcing and global collaboration, all made possible through the touch of a button. A multi-currency card is an excellent resource for those seeking to either hold or distribute a large number of currencies simultaneously without having to first enlist the help of a high street bank or private service.

One of the popular “perks” of the multi-currency card is the fact that individuals can buy the currency of their choice at a fixed exchange rate. Instead of worrying about price increases or reductions, a currency card allows individuals to “hold” money at the value they originally paid for it, thus enabling them to engage in business transactions and money transfer at a more sustained pace.

For travelers, a multi-currency card may be particularly useful, as it reduces the need for international ATM use which often results in substantial financial penalties. Additionally, it helps reduce the likelihood of identity theft and stolen cash while abroad.

A number of services are now beginning to spring up which are directly related to the multi-currency phenomenon taking the world by storm. Caxton FX, for example, is now offering users the ability to hold up to 24 different currencies at any one time. A new prepaid Mastercard is also available which allows for stockpiling of 15 different currencies as well as topping up via your preferred bank account. Moneycorp has also begun to offer a new prepaid card, dubbed the Explore, which allows customers to load up to 14 different currencies before and during use.

As can be seen, there are no shortage of options when it comes to selecting a multi-currency card. Hopefully, these products will become an integral element of international business and travel in upcoming years.

World’s First Wearable Money Transfer Watch

As the idea of the “smart watch” quickly begins to take hold of consumers’ imaginations, a number of entrepreneurial-minded companies and individuals have become to find new and innovative ways in which these products can further facilitate daily professional and personal needs.

International money transfer has long been considered one of the most cumbersome elements of traveling or multinational business, due in large part to the lack of a convenient and powerful transfer system outside of real-world, brick and mortar banking institutions. All of that is about to change, however.

Recently, the global money transfer firm World First announced that they would soon be marketing the a new app which they are billing as “the world’s first international payments app for a wearable device”. According to the developers, this new app will allow for seamless and near-instantaneous transfer of funds for both professional and personal use across multiple currencies.

Featuring a number of flashy voice commands and innovative swiping features, the new app developed by World First allows customers to buy and sell international currency, as well as engage in transfers of all sizes, in less than 60 seconds, all from the comfort of their own wrist.

This, of course, will serve as a welcome addition to the arsenal of on-the-go business professionals around the world, many of whom simply do not have the time to stop in and engage in person-to-person transactions with banking institutions. Given the fact that many of these organisations also levy hefty commission fees against customers, the attractive rates offered by World First will likely be very appealing to those who have not yet been acquainted with them.

This all assumes, of course, that wearable technology will truly become the next “hot” item on the marketplace. The public still appears relatively divided on whether or not these products should be popularized. According to a recent UK survey, more than a third of those polled stated that they would be embarrassed to wear this particular type of technology in public. Opinions are likely to change substantially over time, however, and the new wearables being developed by major software companies around the world should withstand the test of time. For customers of World First, this will definitely be welcome news. More information about World First’s revolutionary new app can be found by visiting their official website. The company has stated they are currently in the process of developing a similar app for the Apple watch.

Category: Exchange & Remmitance