People still risk systems like hawala despite the huge risks
Finance experts are warning against using ‘traditional’ money transfer techniques as people lose, on average, almost £2,000 and up to £10,000. Transfer systems like hawala operate outside of official financial channels and expose users to an increased risk of scams, fraud and money laundering.
New research from Remitly reveals that a third of people would consider using a hawala network. Hawala is especially popular in the South Asian community, where just over a quarter still rely on informal methods to send cash abroad, despite people reporting losses of more than £10,000, with the average amount lost standing at £1,954.
Remitly has teamed up with ‘ pirate radio legend’ Chabuddy G and personal finance guru Bola Sol to highlight stories of those who have been scammed, and issue advice. To listen and watch the stories, visit www.remitly.com/dontgetscammedfm.
Chabuddy G, also known as Asim Chaudhry, said: “As an ex-scammer myself, I know how a scammer moves, how a scammer thinks, how a scammer…scams. Whether you call it hawala or ‘a mate who knows a guy’, the risks are real. I’ve seen people lose serious cash thinking they’re doing a favour for family, which is why I wanted to do what I do best, and take to the airwaves to help people clock the dangers, keep their money safe, and enjoy some Bhangra bangers.”
