Ohio Department of Commerce
Ohio Department of Commerce
21/08/2024 | Press release | Distributed by Public on 22/08/2024 02:47
Navigating the World of Money Transmitters: Know the Risks, Protect Yourself
COLUMBUS, Ohio -In 2023 alone, Ohioans sent more than $2 trillion through money transmitter services, which has more than doubled from 2018. While traditional services like Western Union and MoneyGram allow individuals to easily send money to family and friends, including overseas, newer online companies like Fintech Digital and crypto exchanges pose a higher risk of fraud. The Ohio Department of CommerceDivision of Financial Institutions (DFI)is highlighting how Ohioans can protect themselves - and their money - from potential risks.
The Division of Financial Institutions is part of the Ohio Department of Commerce. The department is Ohio's chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at com.ohio.gov.
"Using money transmitter services can be incredibly convenient, but it's critical to ensure you're using them safely and responsibly," said Ingrid White, Deputy Superintendent of the Division of Financial Institutions. "In most cases, problems don't originate from the companies themselves, but rather via the platforms they provide since they could be exploited by scammers looking to take someone's hard-earned money."
With the proliferation of online money transmitters for holding and transmitting funds, consumers should be aware of potential scams, especially those involving crypto wallets or online purchases. Fraudsters may set up fake companies or pressure individuals into sending money under false pretenses, such as a family emergency. Unlike online digital payment networks such as Venmo or Zelle, which require extensive user verification, some of these money transmitter services are prime areas for scammers to exploit due to their less stringent account setup processes.
If you fall victim to fraud using a money transmitter service, you should take immediate action by:
- Filing a police report.
- Contacting the money transmitter.
- Reporting the incident to the DFI via its website by clicking here.
DFI ensures the companies it licenses follow strict protocols, including "Know Your Customer" checks. These checks serve as guidelines that financial institutions and businesses should follow to verify a current or potential customer's identity, suitability, and risks. Companies must also act on customer complaints, including flagging or closing fraudulent accounts and reporting them to the Financial Crimes and Enforcement Network with the U.S. Treasury Department.
How to Protect Yourself
- Verify the Recipient: Only send money to people or companies you know and trust.
- Use Reputable and Licensed Services: Only use money transmitters with DFI licenses.
- Stay Informed about Scams: Be aware of common scams, especially those involving fraudsters claiming to be from a government agency.
- Report Fraud: If you suspect fraudulent activity, file a police report, contact the money transmitter company, and notify DFI.
- Monitor Accounts: Regularly check your accounts and report any suspicious activity immediately.
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About the Ohio Division of Financial InstitutionsThe Division of Financial Institutions is part of the Ohio Department of Commerce. The department is Ohio's chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at com.ohio.gov.