In this article, we delve more deeply into one of the key approaches to e-Transfer fraud prevention: providing your members with education and resources on how to use Interac e-Transfer service safely and protect themselves from fraud.
Two key areas of knowledge that’ll enable credit union members to better protect themselves from fraud when using Interac e-Transfer are: knowing how to cancel transactions and following safe practices for sending and receiving money.
What is Interac e-Transfer?
Interac e-Transfer is a secure and convenient way to transfer funds between bank accounts. It allows individuals to send money to anyone with an email address or mobile phone number quickly and easily. Once the funds are sent, the recipient receives an email or text message with instructions on how to deposit the funds. Canadians widely use Interac e-Transfer to pay for goods and services, split bills and transfer money to friends and family.
One of the ways credit unions can help their members protect themselves from e-Transfer fraud is by providing information on how to cancel an Interac e-Transfer transaction. In some cases, members may need to cancel a transaction if they have sent money to the wrong recipient or if they suspect fraudulent activity.
To cancel an Interac e-Transfer transaction, members can log in to their credit union online banking account and navigate to the transaction history section. From there, they can select the transaction they wish to cancel and follow the instructions provided by the credit union. It is important to note any fees that may be associated with cancelling a transaction and that the ability to cancel a transaction may be time-sensitive.
Safe practices for accepting and sending money
Credit unions can also help their members protect themselves from fraud by providing information on safe practices for accepting and sending money through Interac e-Transfer. Here are some tips credit unions can share with their members:
1. Verify the other party :
Before responding to an Interac e-Transfer request, verify the sender or recipient is someone you know and trust. Fraudsters may use fake names or email addresses to send fraudulent transfer requests, so it is essential to be vigilant. Before sending a transfer, verify that the recipient’s email address or phone number is accurate. Sending money to the wrong email address or phone number can result in delays and inconvenience, and it may not be easy to recover the funds.
2. Use a secure network:
When accepting or sending an Interac e-Transfer, use a secure network to access your email or text message. Avoid using public Wi-Fi or other unsecured networks, as they may be vulnerable to hacking.
3. Set a security question:
When accepting or sending an Interac e-Transfer, choose a security question that only the other party would know the answer to. This adds an extra layer of security to the transaction.
Another option is to enable automatic deposit for your account to bypass the need for a security question when receiving funds, however, the risk of a payment being cancelled or recalled even with an Autodeposit in place does remain.
4. Don’t share the security question or answer:
To protect yourself from fraud, never share the security question or answer with anyone other than the sender, and do not share the security question or answer via email or within the transaction comments field where it would be easy for a fraudster to find.
Interac e-Transfer is a popular and convenient way for Canadians to transfer funds between bank accounts, but as with any online transaction, there is always the risk of fraud. You can help your members by providing resources and information on how to minimize the risks of fraud happening to them.