Electronic Funds Transfer (EFT) offers convenience and speed, but it also has its own set of drawbacks. Here are two disadvantages of using EFT:
1. Security Risks
EFTs involve transmitting sensitive financial information electronically, making them vulnerable to security breaches. Hackers and cybercriminals can intercept or steal data, leading to unauthorized transactions and financial losses.
- Example: A thief could gain access to your online banking account and transfer funds to their own account.
2. Limited Consumer Protection
While EFTs are generally safe, there are situations where consumer protection is limited. If a fraudulent transaction occurs, recovering your funds can be challenging and time-consuming.
- Example: If you make a purchase using an EFT and the merchant fails to deliver the goods, getting your money back might require extensive documentation and communication with both the merchant and your financial institution.
