Is that money transfer app really safe? Most expats never think to ask

Relocating abroad often proves challenging, particularly when adapting to local regulations, understanding foreign health insurance, setting up utilities, and transferring significant rental deposits to new landlords. In bustling expat destinations like Berlin, home to over 976,000 registered foreigners who rely on cross-border services such as Profee, these administrative complexities intensify the stress of moving.

Determining the safety of a money transfer app can be daunting, especially when already overwhelmed by the relocation process. To help expats better understand these safety standards, Profee experts CMO Ilya Bunin and CPO Denis Gamaleya shed light on what expatriates should consider when selecting a secure provider. Ilya Bunin, Profee's CMO, emphasizes that individuals shouldn't need a background in financial compliance to safely transfer money to their home country.

However, the mental strain of relocation cannot be understated, and cybercriminals are well aware of this, preying on expats' vulnerabilities. Besides security concerns, managing finances across borders presents practical difficulties. While maintaining one budget in one currency at home, expats now manage two budgets in two different countries, with fluctuating exchange rates and varying service fees.

According to the International Fund for Agricultural Development (IFAD), international money transfers typically incur around 6% in currency conversion costs and fees, exceeding the United Nations Sustainable Development Goal target of 3%. Amidst this financial instability, alongside high legacy bank fees and sudden freezes from conventional retail banks, stressed expats are driven to seek quick digital alternatives, making them prime targets for scams featuring fake ads, phishing links, and deceptive websites.

Traditionally, expats have turned to traditional retail banks due to the perceived safety of physical branches. However, the shift towards digital platforms can be intimidating. Ilya Bunin notes that banks have long been considered safe, with physical buildings and personnel offering a reassuring presence. Yet, in the digital era, the absence of brick-and-mortar offices necessitates alternative security measures.

To ensure maximum safety while leveraging the benefits of digital remittance, Denis Gamaleya, Profee's Chief Product Officer, recommends three key security pillars when choosing a money transfer app. Any trustworthy digital transfer service must possess a verifiable regulatory license. Profee, for instance, operates as an Electronic Money Institution (EMI) under Licence No. 115.1.3.16/2018, regulated by the Central Bank of Cyprus.

This regulatory status provides a legal safeguard equivalent to that of a bank, ensuring compliance with EU regulations and consumer protection rules. To maintain security, licensed payment providers like Profee must adhere to PCI DSS Level 1 certification, the highest international data security standard. Profee undergoes regular evaluations by external security experts to maintain this certification.

Users should avoid downloading installer files from unverified sources, as these files lack the stringent compliance checks enforced by official app stores like the Apple App Store and Google Play Store. Even the most diligent users may inadvertently fall prey to phishing links, copycat websites, or suspicious downloads. If such incidents occur, it is crucial to take immediate action to safeguard personal information and finances.

Ultimately, digital financial security hinges on peace of mind. While conventional institutions rely on costly physical offices to project safety, modern fintech platforms like Profee employ robust encryption and comply with stringent European regulations, focusing resources on providing safety, competitive exchange rates, and low fees for expats.

Ilya Bunin concludes that by selecting a licensed, audited, and transparent digital partner, expats can confidently navigate cross-border transactions without compromising on safety or quality.