Before initiating an international transfer that involves currency exchange, a few phone calls can save you some bucks. Exchange rates vary daily. Check with commercial banks, private systems such as Western Union and MoneyGram , and currency houses such as Thomas Cook to compare the difference on rate spreads. Jeff Stehm, an analyst for the Federal Reserve, recommends checking the wholesale exchange rates published in newspapers. The bottom line is, it's going to pay to shop around.
International transfers pose the greatest risk.
Foreign banks are not always as heavily regulated or technologically advanced as U.S. banks. And foreign deposits are not insured. Wire fraud investigations Small storefront operations, of which there are thousands in cities with dense immigrant populations, are the most common targets of wire fraud investigations. John Kennedy, investigations manager for Florida's state Comptroller's Office, recommends that before using a wire transfer operation that is not mainstream, make sure it has a state license to do such business. Kennedy says his office is currently looking for the operators of a Miami company, Pinolero Delivery, that went out of business after about 2,000 customers complained that money they wired to Central America never made it there.