Hackers stolen £651 million from banks

For years, financial institutions around the world have relied upon the Swift payment system for international transactions with partner organisations, individuals, businesses etc. In a way, Swift has proven itself to be a highly efficient, ultra-reliable tool by which the world’s financial infrastructure can operate. Recently, however, a group of as yet unidentified hackers have proven that even a system as secure and heavily defended as Swift can be manipulated in order to help perpetrate cybercrime and digital theft.

According to official reports by global security experts, a team of hackers recently targeted the Bangladesh central bank as part of a massive cyber theft attack involving international money transfer. As a result of the attack, nearly 55 million pounds Sterling were diverted into the hands of these culprits. Although experts now know that the money was transferred to the Philippines, little information has been made available regarding who may have been behind this perfectly executed heist.

This crime has underscore the need for fresh thinking when it comes to designing and properly implementing theft deterrent measures within the Swift network. As it currently stands, there are nearly 11,000 banks and financial institutions which utilise the Swift payment network on a regular basis. In a recent response to the theft, representatives from Swift have stated that the company has known of “…a number of recent cyber incidents in which malicious insiders or external attackers have managed to submit Swift messages from financial institutions’ back offices”.

It is perhaps, reassuring to know that the means by which these criminals were able to manipulate the Swift system was through external means, i.e. the banking infrastructure itself as opposed to the Swift transfer mechanisms. In this heist, for example, Swift merely operated as a means by which the funds were transferred as opposed to the method by which hackers gained access to the funds.

Methods aside, however, this incident serves as a stark reminder that money transfer remains a potentially dangerous and risky tools for businesses and individuals alike. Although the Swift system may not have been directly involved in the heist, it remains the primary vehicle by which one of the world’s larger thefts was successfully completed. More information regarding this shocking crime will likely be made available in the near future. Investigators are actively searching for further information regarding this crime and the identification of possible suspects.

The ‘ins and outs’ of Exchanging Your Currency

Ever since the Brexit results, the pound has suffered against the euro. This can make for a difficult and, oftentimes, confusing journey to exchange your sterling in anticipation of a holiday outside of the UK. The drop in the pound means many families had to refine their travel budgets to accommodate the change in what their pound will get them.

Some bureaux de change offices are offering barely above €1 for £1, especially if you wait till the last minute and changed your money at the airport, for example. On top of the poor exchange rate, you can count on high fees and charges being billed by some of Britain’s biggest banks, such as Lloyds. Lloyds charges 2.99% for every debit car transaction while abroad. It also adds a £1 standard fee on top of the percentage fee. It can cost you £4.50 each time you take money out of a cash machine in Spain. If you must make a cash withdrawal in another country, it is best to take out a large amount, once, than a lot of little withdrawals. By doing that, you can avoid the myriad of flat fees every time you use a machine.

Many people are unaware that you can order money online, ahead of time, and save a lot. Even the pricy airport exchange bureaux can be the best deal, if you order ahead and pick up your money at the airport bureau. There is a website that can help you find the best deal to exchange your currency. TravelMoneyMax.com will search, using your postcode, for the best deal near your house.

Ordering at least 24 hours ahead of time can mean the difference between €1.05 per £1 and €1.17. Some bureaux even offer next-day delivery if you are unable to get to the office in person. There is a small fee for this service but, compared to bank fees, it is a still a good deal. A good thing to keep in mind, whether you are walking up to counter to exchange or you have ordered in advance, is to never use a credit card to exchange. The transaction will be treated as if you were withdrawing money from another country and you will be hit with a lot of fees. Always use cash or a debit card.

No matter how diligent you are when making your vacation budget, something is always bound to come up. Plans change or you face unexpected expenditures. When this happens, it’s wise to be aware of the best way to withdraw money in another country. Most big banks with take off the top approximately 10% of the money you are withdrawing. One exception is Nationwide building society. If you have the society’s FlexPlus account, you can take money from cash machines with no fee at all and the exchange rate is near-pure market rates. There is a monthly fee for this account but it includes family travel insurance and coverage for a car breakdown. Other banks that are fairly cheap are Norwich & Peterborough building society and Metro Bank. It’s understandable that you may not want to switch banks just for a holiday or two. Research your options and you’ll be better off for it.

The last point, and perhaps one of the most important ones to remember, is that many cash machines abroad will ask if you want your transaction to be in pounds instead of in euros. Even in shops, the shopkeepers will ask you this. Always say no. If you say yes the bank or shop will apply its own exchange rate and that rate is guaranteed to be horrible.

Wherever you’re headed for your well-earned vacation, be informed and research before you exchange your money or use a credit or banking card in another country. You worked hard for your money, don’t let a currency exchange take a lot from it.

Impact of Politics on Currency Exchange

Politics can be seen to have what is called the butterfly effect. The election of Donald Trump, the results of the elections in France, the Brexit vote last June, and now the general election results of this month, among others, all play a part in how the currency is valued globally. In the aftermath of this most recent UK election, the pound sterling has slipped again. It was already low, have slumped and never recovered last year after the Brexit vote.

After exit polls predicted that the Conservative party would suffer a major blow in Thursday’s vote, the UK currency fell around 2 per cent. Investors have been spooked by uncertainty after this election ended in a hung parliament. This comes just days before the negotiations of Brexit begin. It slid a further 0.7% and failed to recover after the final results of the election were confirmed.

The Tory party had failed to secure a majority and the results on the markets were not good. The pound has lost more than 14 per cent against the dollar since last June’s Brexit vote. Some speculation surrounding a strengthening of the pound if the election results lead to a softer Brexit but there are many who remain skeptical about this. UniCredit’s chief UK economist, Daniel Varnazza, wrote in a note to clients: ““A ‘hard’ Brexit is almost a given,” “With Theresa May weak, the hard-line Euro-sceptics in the Conservative party, who are more organised than the Remainers, will be able to take the Prime Minister hostage in their pursuit of a hard Brexit. There isn’t any realistic prospect of this chaos leading to a rethink of the Brexit decision for the country.”

The current political uncertainty is having a dramatic impact on the pound and business leaders should take heed and come together to figure out ways to ensure the pound can be made more stable. There are many questions surrounding Brexit now, and the talks are going to have an even more unsettling effect on the markets.

Volatility of the pound will continue while the government figures out who will lead the country. The Brexit talks and negotiations will have the same effect. Even though the economists factored in what they presumed to be the volatility of sterling during the Brexit talks, even they are uncertain of what will happen in the near future. This is not good for attracting investors to the UK.

“Theresa May’s electoral gamble has catastrophically failed,” said Tom Stevenson, an investment director at Fidelity International. The market reaction to this unwelcome outcome is likely to hit UK shares, bonds and the pound. Markets will likely remain on the back foot while the difficult job of putting together a workable government is undertaken.”

Political uncertainty, election results here in the UK and elsewhere, Brexit, and the effects of the global economy, all are part and parcel of an extremely volatile pound and does not bode well for the UK as business continues to try to attract investments, Investments that seem to be waiting for everything to calm down before repatriating assets into the UK.

Migrant Workers, Money Transfers and Technology

Technology creeps into our lives, transforming who we conduct our lives, our businesses, even our interactions with family and friends. Our mobiles have become a lifeline, at times, for reaching out and seeing the face, and hearing the voice, of a loved one who is thousands of miles away. What a joy this technology is. On less emotional terms, the technology on our mobiles can make our everyday lives easier. We can send a few pounds to a friend in need, pay our bills, as well as transfer our money from and to different accounts. All the while having a cup of coffee at your favourite cafe on the corner, watching the world go by.

Ah, live is good. Now imagine that you have loved ones living in another country. A country that is not as rich in resources and opportunities as in the UK. Loved ones who count on you to send them money, on a regular basis, so that they may live a slightly better life. Now technology just got a lot more exciting and helpful. It has become a vital lifeline for many families of migrant workers in the UK.

For many years, money transfers to another country was a day long affair. Going off to the bank or brick and mortar shopfront that caters to money transfers. The paperwork and the information needed to make that transfer happen was astounding compared to what we have in the way of software and technology. We can’t forget the costs either. The bank fees and currency exchange fees – it was expensive.

For customers who need to send money out of the country, advances in mobile technology is helping to make the transfers easier and less expensive. Customers now have more choice. Using a smartphone, with just a few swipes, their money can be sent. The mechanics of money transferring is becoming more convenient and secure. It is also driving down the costs, which is of great benefit to all, especially migrant workers who want to send as much money as they can to their families while still being able to live and work in the UK.

Money transfers, according to the World Bank, is a vital lifeline for many and is worth almost $500 billion annually. There are approximately 700 million people globally who are supported by money transfers. Incredible numbers to think about. We are truly a global village and technology is making the art of reaching out easier.

Money Transfer Fees and What to Look Out For

It can be a tricky act to transfer money, especially large amounts of money. Fees are the biggest hurdle you have to overcome if you don’t want to throw money away. With the ‘global village’ that we live in, transferring sums of money is becoming more commonplace. The transfers are also becoming a lucrative business for banks and institutions. Ill-informed clients are some of their biggest gains. Don’t get caught up in that trap.

While using banks might be the first source people think of when preparing to transfer money, they may also be the most expensive. On top of the fees you have to pay to the bank for a wire transfer, there may also be hidden fees. These fees often are in the form of skewed currency exchange rates.

Some things to pay attention to are the bank’s exchange rates and their currency conversion fees. Every bank has its own exchange rate fee or currency conversion fee and these fees can be quite high. It’s up to the bank to decide these fees. Usually set as a percentage of the amount being converted and transferred, one must keep in mind that it doesn’t cost the bank more to transfer a large amount compared to a small amount. In other words, by using a percentage instead of a set fee, banks are reaping in profits based, basically, on a random number.

Exchange rates do not change with the size of a transfer, nor does the work involved. Using a percentage rate is just not fair to you. Keep this in mind as you consider what institution you will transfer your money through. Ask the questions and shop around for the best rates.

There are a number of companies opening up that provide a lower rate, compared to banks. As the number of these businesses increase, the tables are being turned in favour of you, the client. Competitive rates are great for people who need to transfer money frequently. These new businesses recognize a niche the banks have created and are taking advantage of new and expanding ways to transfer money globally.

Now is the time for those of us who need to make money transfers, whether they be small, recurring transfers or a large money transfer, such as for a house purchase, to be in control of how much they are willing to pay for that transfer. Its no longer just banks in the game.

Exchanging Money – How to Get the Best Rates in These Times of Turmoil

First the results of the referendum, followed by the triggering of Article 50, and now the unanticipated general election results. Following each of these, the pound has fallen and appears to keep falling. It is now at its lowest in over 4 years and no one is certain where it will land. Two years of negotiations will see the pound remain unstable and inflation rise to a high that has not been seen for many years. There are grumblings about a second general election and that could see the pound drop even further. The Article 50 negotiations will lead to a soft or hard exit and a soft exit could be beneficial for the pound.

All of this uncertainty and turmoil is making the exchange of the pound to another currency unpredictable and difficult for Brits to decide when a good time is for exchanging their money, mainly for travel as the season is upon us. Exchange your money now, before the pound falls further, or waiting and hoping that it rebounds is a difficult decision. With inflation as it stands now, people have to be very careful with their finances and ensure that they are getting the best rate possible to make their money go further.

If you don’t want to think about exchange rate movements and plan a strategy, buying at today’s price and simply ensuring you find the best rate on offer is one option. Keep in mind that the best rates will not be found at a bank or Post Office, and the worst place to exchange your money is at transport hubs such as airports. It is often the small, highly localised suppliers who have the best rates. Planning ahead can also save you money by ordering ahead of time, most exchange businesses will give you a good deal and, depending on the amount you want to exchange, will charge you lower fees.

Another option is to buy in stages. This will even out the rate as the pound fluctuates and you purchase at times when it is high and sometimes it could be low. This option won´t give you the best rate but it will prevent you from purchasing money during a temporary slump. Be aware that some fees are higher for smaller amounts and it would be wise to research these fees before opting to buy in stages.

The bottom line to purchasing currency is to do your research and make a plan. You want to ensure that you are getting the best rates and lowest fees for exchanging your money. After all, you´re going on vacation and the last thing you want to be thinking while on vacation is money and how, in hindsight, you should have done it differently.

Feeling-the-Inflation-Squeeze

Inflation in the UK is hindering the household budgets as it has climbed to a four-year high since the Brexit vote. When the pound fell sharply after the vote, the economy started to suffer. In May of this year inflation rose to 2.9%, above the 2.7% that was expected by economists. Inflation has been steadily increasing since the referendum result a year ago, which triggered a sharp drop in the value of the pound and pushed up the cost of goods imported from abroad. Inflation was 0.3% in May 2016, a month before the Brexit vote. That´s a growth of 2.6% in inflation in just a year.

While higher prices for oil have added to the upward pressure of inflation, it really comes down to the weak pound. UK households are seeing higher prices for food and electricity, leaving less to spend on travel and non-essential purchases. As manufacturers are being hit by the weak pound for purchasing goods from overseas, the price rise of their goods for production will mean higher prices for consumers. It appears to be a catch 22, as wages are not keeping up with inflation which leads to the inability to purchase goods that, in turn, help the economy to grow and for inflation to lessen.

There is movement to pressure the newly elected government to help households cope with rising living costs. The TUC general secretary, Frances O’Grady, said “The election showed that working people are struggling. And the biggest price rises in four years won’t provide any comfort.” She also stated that “Working people are still £20 a week worse off, on average, than they were before the crash, and now rising prices are hammering their pay packets again. The new government must stop the real wage slide. Ministers must focus on delivering better-paid jobs all around the UK.”

“Too often there is more month than money left after pay day. Ending the public sector pay freeze and making sure all workers are paid a decent wage is an absolute must and it needs to be on the agenda for the Queen’s speech. Tim Roache, general secretary of the GMB union said. The average wage growth of 2.1% in March is not keeping up with inflation and the inflation increase is expected to widen the gap even further.

The Brexit negotiations are hindering the UK´s ability to shrink the gap between inflation and wages and will continue to do so until everything is settled but that is a long way off. Even interest rates are being affected. The Bank of England is keeping the rate at the record low of 0.25%. Oliver Kolodseike, a senior economist at the Centre for Economics and Business Research consultancy, said: “Under normal circumstances, the Bank of England would have a sufficient set of arguments to justify an interest rate rise. “Under the current circumstances of high inflation and low wage growth, increasing interest rates would only harm consumers further, as they grapple with trying to pay their mortgage and rising bills.

Minimal growth in wages, big growth in inflation, and a weak pound, have all led to a lag in consumerism and the end is not in sight. Paul Hollingsworth, a UK economist at consultancy Capital Economics, is predicting an even higher inflation rate, at around 3.2% in the fourth quarter of this year. This is due to the forecast in costs of production and the price increases feeding down through to the shops and the consumers. All of the UK is in a standby position, holding their breath so to speak, to wait and see what happens once the UK leaves the EU.

What Exactly is a Bureau de Change?

We´ve all heard of, or at least seen the signs for, a Bureau de Change but what exactly is it and why is it in the French language? Well, it is a business for exchanging currency. The term is originally French but is now widely used throughout Europe and some parts of Canada. Unless you’re in France, you don’t have to worry about the people working in a bureau de change not speaking your language. It actually became the norm when the euro was adopted and is now a prominent name for many exchange offices.

A bureau de change is often located in an area where there are many people such as a bank, at a travel agent, an airport, railway station or large stores. All of these areas have people that might be in need to exchange currency. Airports and railway stations are the most common spots for a bureau de change.

Exchanging currency at a lower rate than what they, themselves, purchased it at is the business they are in and that’s how they make their money. They will often charge a fee for their service, on top of the exchange rate. This fee can be a percentage of the amount being exchanged or it can be a flat fee. Some bureau de change offices will charge both. With the rise of online exchange businesses, the bureau de change offices are feeling the bite into their business and their profit margins are dropping as they try to compete with the online world.

Changing money at a bureau is often a more expensive transaction. Being situated in areas such as airports allows this business to offer services to people in transit who have little choice in the matter. They are stuck at an airport or railway station and need currency exchange. Bureaus also offer the opportunity for money laundering and many countries require them to register as money service businesses so that they are subject to the anti-money laundering measures of a particular country.

You might think that you really don’t need to know about bureau de change but knowledge is power and the more you know about how different businesses conduct money exchange can only help you if you find yourself in need of currency exchange. There are many other businesses out there and you’d be wise to understand what’s best for you and your hard-earned money.

Take Advertising to a Whole New Level with Digital Advertising

In the world of money exchange the competition is huge. Having great software and an advertising platform that won’t cut into your profits gives businesses the advantage of offering competitive rates. VinIT Solutions has a sound offering of software and now offers a digital advertising system that will give you the edge over your competitors. Don’t toss out your flyers or mailings but, rather, add to their benefits using digital advertising. As with all advertising, you want your business to be a common sight. The more your potential customers see your name and your brand, the more likely they are to reach out to you for business.

Advertising your business can be costly but with digital advertising you’ll save money and reach more people. Spending on advertising has grown exponentially in the UK, seeing growth every year for the past seven years in a row. Digital formats continue to dominate that market and mobile advertising accounting for 99% of that growth. According to James McDonald, a senior data analyst at Warc, the UK ad industry is experiencing the “most seismic shift” in its history. “Last year exemplified this, as over 95% of the money entering the market came from digital formats. The trend will continue as ad tech improves and consumers spend more time with their internet- connected devices,” he claims.

To see digital advertising growing year in, year out is encouraging in these unsettled times of Brexit. Advertising has proved to be resilient to uncertainty and digital advertising is helping to lead the way. It provides an electronic communication medium that allows businesses to gain more exposure and reach a greater audience. Being able to reach customers with dynamic images and videos direct to their mobile devices is a boost for advertising. This rings even truer when you’re advertising money exchange software. Information can change quickly, as with exchange rates, for example.

The business of money exchange is constantly changing. Cutting edge technology has created an exchange world that is able to offer rate changes at lightning speed, in real time. Being able to advertise to your current and future customers through the digital medium will attract customers and is cost effective. We all know how much time is spent on mobile phones and tablets. We also know that many of our customers like to transact business using these devises. Combining advertising with your software is simply the next step in our digital world.

The Digital Display Systems offered by VinIT Solutions provides you with an electronic communication medium that allows you to gain more exposure and a greater audience. While posters, handbills, leaflets, screen printing and stickers displayed in more visible places to the public was the most popular method of advertising, digital display solutions have come to the forefront of the advertising world. With the invention of digital display solutions, communication has become more flexible and much easier than the printed media.

The printed advertisement isn’t going away any time soon, so don’t rush to do away with that and go all in with digital advertising. Think of digital advertising as an add-on, for now. One day, digital advertising may be the only advertising you see, but that’s doubtful. Customers want both, so utilise your digital presence while maintaining your printed advertisements in order to reach as many potential customers and maintain the ones you have.

Be Careful Out There – Money Laundering is No Joke

Money laundering is often thought of as a ‘Mob’ type activity. Most people think that they would be involved in it, knowingly or not. Most people would be surprised to learn that in just nine months last year there were 8,652 cases of young people who became ‘money mules’ for money launderers in the UK. The most vulnerable age is between 18 and 24. A ‘money mule’ is someone who moves large sums of cash for a criminal entity in order to ‘clean’ the money by funnelling it through legal channels. Some knew that what they were doing was illegal, but many weren’t aware. A study showed that one third of people would apply for jobs that they think are legitimate but are really ‘money mule’ jobs.

Fake ads are showing up more and more these days and they can be really hard to spot as fake. One way to avoid falling into this trap is to think to yourself – if an offer sounds too good to be true, it probably is. Vulnerable people are those who have little or no income. They are usually young but don’t have to be. Anyone wanting easy cash can fall for these scams and find themselves involved in illegal activities that could leave them facing life-changing consequences such as having your bank account closed to facing a jail term of up to 14 years. Keep in mind that money laundering often supports criminal activities such as people trafficking, drugs, and even terrorism.

Some ways to avoid these fake ads and falling victim to them are: not clicking on any link that is asking you to verify or update your bank account details; not answering a call or text from an unfamiliar number regarding your bank account; remember your bank would never ask you for your
personal information over the phone and would never ask you to transfer money from your account, for any reason; and always respond to emails or phone messages by visiting your bank’s website and calling or emailing a person from the actually bank.

Again, if it sounds too good to be true, it probably isn’t. If you’re unsure about a phone message or email, ask a friend or your bank. Simon Dukes, chief executive of Cifas, said: "This is a serious issue that not only has consequences for the money mule, but for society as a whole. We want to educate young people about how serious this fraud is in the hope that they will think twice before getting involved." So be smart and stay safe.

Category: Money Transfer Software