21/08/2024 | Press release | Distributed by Public on 22/08/2024 02:47
"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:
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
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About the Ohio Division of Financial Institutions