Is it Safe to Send and Receive Money Online?

Online money transfers are safe when you protect yourself by using secure platforms and strong personal habits. Financial institutions and payment services use encryption (technology that scrambles data so only the right person can read it) and fraud monitoring. Still, your behavior determines how effective those protections are. Follow these three steps to help keep your accounts protected.

1. Choose Secure Platforms 

Start by choosing a trusted provider. Established banks, credit unions, licensed transfer companies, and well-known digital wallets (PayPal, Venmo) use safeguards such as encryption, fraud detection, and multifactor authentication (MFA). MFA requires both your password and a second form of proof, like a code sent to your phone. 

Example: You transfer money to a relative through CommonWealth’s app, which is safer than using an unfamiliar third-party service. 

2. Adopt Strong Personal Security Practices 

Once you’ve picked a secure platform, the next safeguard is your own behavior. Always enable MFA and use unique passwords for financial accounts, ideally stored in a password manager. Confirm the recipient’s contact details before sending. Peer-to-peer (P2P) payments—direct transfers between individuals—are processed immediately and almost impossible to undo. One wrong email or phone number may result in permanent loss of funds. 

Example: A payment request arrives from “your landlord.” Confirm with your landlord directly using verified contact information before sending. 

3. Recognize Scams and Fraud 

Scammers often use urgency and trust to trick people into sending money. Common schemes include: 

• Imposter scams: Fake government or utility agents demand immediate payment. 
• Overpayment scams: A fake buyer “overpays” and asks you to refund the difference. 
• Emergency scams: A fraudster pretends to be a friend or relative needing urgent help. 

Treat urgency as a red flag. Never send money to strangers and always confirm unexpected requests directly with the source. 

Example: A caller says your grandchild is in trouble and needs money now. A quick call to family confirms it’s a scam. 

Together, technology and discipline keep your money safe. Choosing secure platforms, adopting strong personal security practices, and learning to recognize fraud can help you stay alert to scams that attempt to bypass both.