I’m a Bank Teller: 2 Financial Moves to Avoid Conducting Over the Internet
You can now handle almost all your banking tasks, from paying bills to getting a loan, with just a few taps on your smartphone. Given this convenience, why would anyone visit a bank branch unless absolutely necessary?
While many transactions are fine to do online, Kimberlie McGee, head teller at Addition Financial in Lake Mary, Florida, advises that wire transfers and large cash transfers should always be done in person at a bank or credit union branch. This is because fraudulent activities involving these types of transactions are on the rise.
The Federal Trade Commission (FTC) supports this view, noting that online predators are increasingly targeting wire and large bank transfers. Conducting these transactions at your local branch can be safer.
Wire transfers are particularly vulnerable to fraud because they are usually irreversible. Scammers often pressure victims to wire money, knowing that once the money is sent, it’s nearly impossible to get it back. The FTC advises never to wire money to someone you haven’t met in person.
Common wire transfer scams include:
– **Utility scams**: Scammers pose as utility providers and threaten to cut off your service unless you wire money immediately.
– **Romance scams**: Scammers build a relationship with their victims online and then ask for money to deal with a fake emergency.
– **Prize scams**: Victims are told they’ve won a prize but must wire money to cover fees or taxes.
– **Family emergency scams**: Scammers pretend to be a family member in trouble and ask for an immediate wire transfer.
– **Fake check scams**: Scammers send a check and ask the recipient to wire part of the money back. The check eventually bounces, leaving the victim out of pocket.
Even if your bank doesn’t require it, visiting a branch for wire transfers can help you avoid these scams. Bank tellers can often spot red flags in potentially fraudulent transactions.
Large cash transfers, while similar to wire transfers, are processed differently. Wire transfers are electronic funds transfers (EFTs) sent directly between banks, while cash transfers use the automated clearing house (ACH) network. Both methods move money without physical cash, but ACH transfers are also increasingly targeted by criminals.
To stay safe, it’s best to handle large cash transfers in person at a bank or credit union branch, just as you would with wire transfers.