However, the rise in fraud is also notable: in the first half of 2025, UK Finance reported that criminals stole £629.3 million via payment scams – and the trend is rising. Indeed, over 2.09 million fraud cases were confirmed in that period. Against this backdrop, how safe are online transfer services, and what should you check before sending money? This article examines key safety factors – regulation, technology, transparency and common scams – so you can send money securely.
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Trust and usage in online transfers
Digital remittances are now commonplace. For example, a 2025 Visa report found 67% of consumers prefer using apps to send money to a bank account. In the UK, about 13% of adults used an international money transfer service in 2024 (up 2 points from 2022), a figure much higher among immigrant communities (27% of ethnic-minority adults had sent money abroad).
That said, even though fraud rates (as a percentage of transactions) remain extremely low – around 0.002% of payment value in the EU/EEA – the total sums stolen are large. The European Banking Authority reported €4.2 billion lost to payment fraud in 2024. UK authorities blocked a large portion of fraud attempts too: banks prevented £870 million of unauthorised fraud in H1 2025 (about 70 pence of every £1 attempted), and victims are refunded in over 98% of those cases. Despite this, the ease of online scams (phishing, fake sites, etc.) means that senders must stay vigilant.
Check provider regulation and safeguards
The first thing to verify is that your chosen service is properly regulated. In the UK this means authorisation by the Financial Conduct Authority (FCA) – or its equivalent in other countries. Only FCA-authorised payment firms and e-money institutions can legally operate money transfer services for UK customers. An FCA-authorised provider must segregate client funds (keep your money separate from its own accounts) – effectively safeguarding it even if the company fails.
This is akin to how banks hold deposits: in the UK, bank deposits are covered by the Financial Services Compensation Scheme (up to £85,000 per person). Online FX brokers aren’t banks, but FCA rules force them to ring-fence client funds in trust or segregated accounts. In practice, that means if a platform goes insolvent, your money should still be protected.
When using a bank account to send money, you usually get FSCS protection automatically. In any case, you should verify the provider’s status on the official regulator’s register (for example, check fca.org.uk for UK licences). Also ensure the company is licensed to operate in the country of the recipient, if sending abroad. Good providers will mention their regulatory details on their website. If the transfer is for business purposes, make sure the provider is eligible to handle commercial transactions (some platforms are for personal use only).
Financial recourse
If something goes wrong – say you are defrauded or the provider mishandles the transfer – UK customers can usually complain to the Financial Ombudsman Service (FOS) once the firm’s internal dispute process has been exhausted. In fact, banks routinely refunded over 98% of victims of unauthorised fraud. Always keep records of your transactions and communications. Knowing your rights (refund policies, chargeback rules, FOS) is part of staying safe.
Verify website and account security
Before entering any personal or payment details, inspect the website closely. The URL should begin “https://” and display a padlock icon in the browser bar. These are signs that the site uses secure SSL/TLS encryption. Clicking the padlock should show a valid security certificate – if the certificate is missing, expired or clearly unrelated to the company name, do not proceed. This prevents eavesdroppers on public networks from intercepting your data. As the industry adage goes, a legitimate payment page is nearly always SSL-protected.
Password habits
Once you are comfortable that the site is legitimate, you should use a strong and unique password for your account. Never use a password from another site. If the site allows, you should turn on two-factor authentication (2FA). This is a feature that will send a verification code to your email or phone every time you want to login to a site, preventing a thief from getting your password. We recommend password managers for this reason.
Public WiFi
Also, avoid making transfers over unprotected Wi-Fi. Never log into a money transfer account on public hotspots (cafes, airports, hotels) unless you use your own secure VPN. Cybersecurity experts emphasise that “never make online payments using public WiFi” because it’s often insecure. In short, limit transfers to devices and networks you trust.
Inspect the provider’s reputation
Next, research the company’s track record. Read user reviews on independent sites (like Trustpilot) and look for press or news mentions. A high Trustpilot score is a good sign; conversely, serious or recurring complaints about failed transfers or hidden fees are red flags.
Established platforms
Take note of how long the company has been in business and the size of its customer base. Established platforms (even start-ups a few years old) usually have more to lose from scandals. Also see if the provider has clear, reachable customer support (e.g. phone numbers, chat). A reputable firm will have a professional website with contact details and promptly answer queries. If you find no address or the “Contact Us” page only has a generic form, proceed with caution.
Readers may find these guides helpful in choosing a safe provider: see our guide to online payment security or our blog on spotting scams.
Confirm the recipient and details
Before hitting send, double-check all details carefully. Ensure you have the correct beneficiary name, account number/IBAN, and bank code. A single-digit error can send funds astray. Always confirm the payee’s information verbally (e.g. in a phone or video call) if dealing with a person or business. Never blindly trust an email or invoice alone. Fraudsters sometimes create fake payment requests that look legitimate.
Phishing
Be aware of phishing schemes: If you receive any information in the form of emails or messages regarding any transfer, be aware that it may be a phishing scheme. The most common phishing scheme involves someone claiming to be a courier or bank employee and asking you to transfer money or reveal codes to you. It is always important to check the sender’s email or phone number before proceeding with any information. According to the UK’s Take Five campaign, banks should never contact you asking you to transfer money to another account or to reveal your login information.
Likewise, never give out your PIN or authentication codes to anyone. Bank staff or tax officials will never ask for your password or ask you to transfer funds urgently; treat such requests as fraud attempts.
If you suspect fraud after sending, contact your bank immediately. They can often stop or reverse a payment if it hasn’t cleared. The quicker you act, the better the chance of recovery. Then report it to your provider (and to Action Fraud in the UK). Even if the money is lost, having acted promptly will strengthen any case for a refund.
Transparent fees and rates
Besides security, transparency in costs is another aspect to check. Hidden markups and high fees are unfortunately common in money transfers. The middle (interbank) currency rate is often not shown in opaque systems, and the provider may add a secret spread. Make sure the platform discloses all fees up front. Our international payments guide notes that hidden fees can “suffer significant losses” if not scrutinised. Compare the offered exchange rate to online market rates to confirm there’s no big margin. Good platforms often display the mid-market rate alongside their own quoted rate so you can see the margin. If a rate looks unusually poor or a “flat fee” seems high for the transfer size, question it or consider another provider.
Also check if your payment method incurs any fees. For instance, paying with a debit card or credit card can attract processing charges, whereas a bank-to-bank transfer usually has low or no extra fee. Some services allow ACH or direct debit, which may be cheaper. Always read the fine print or FAQ about fees. If in doubt, call customer support and ask what your all-in costs will be. A reputable provider will give you a clear breakdown.
The importance of regulated providers
In summary, online transfer platforms are safe if you do your homework. Always use a regulated provider with strong security practices, verify every detail of the transaction, and stay alert to scams. By checking licences, encryption, reputations, and fees in advance, you greatly reduce risk. Prevention is key – if money goes to the wrong place, it isn’t always possible for banks to get that money back. Do your due diligence, and you can send with confidence.
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Caleb Hinton
Caleb is a writer specialising in financial copy. He has a background in copywriting, banking, digital wallets, and SEO – and enjoys writing in his spare time too, as well as language learning, chess and investing.
