Electronic money system, Ukash was based in the United Kingdom and offered users a possibility to exchange their cash for secure codes, to be able to make online payments, money transfers for cards, eWallets or casino, and other betting accounts. However, the system was a target of several scam activities, and it was necessary to solve these issues to provide customers with safe and secure payment method.
Ukash was, consequently, acquired by Skrill Group in April 2015. Their goal was to merge the online voucher into the Paysafecard system which was also acquired by Skrill a year earlier. Most of the existing Ukash vouchers have expired by November 2015, and remaining ones were exchanged into Paysafecards.
Ukash, in theory, is very simple and convenient way to make money transactions. The service was founded in 2005, and the company´s goal was to allow customers revolutionary system of payment. Users of Ukash were provided with a unique 19-digit code which represented their prepaid money. The code was entered during transactions, and in case the purchase was less than the value of the code a new 19-digit code would be provided. It was just like a change in regular cash transactions. However, this was a fertile ground for frauds and manipulations and many customers were, unfortunately, victims of Ukash scams.
No matter what you used your Ukash for, there was always a risk. From the online purchase, through “suspicious” sites, to online casino or bingo sites – there was a possibility to get the Ukash Virus or Ransom Virus. It is the Malware which spreads around the internet which affected the Ukash system as well. Customer´s computer would be infected, and they would ask the victim to make a payment using Ukash or some other payment method.
In 2012, the company tried to distance itself from the events and issued advice to their clients on staying safe with Ukash. Their advice was to keep codes like cash. The customers were asked to make online payments only with participating merchants, and not providing the Ukash code over the email or phone. The latter case was the most often in scams, and people started to avoid this payment method. Fortunately, after being acquired by Skrill, the team of experts is dealing with new protection methods on a daily basis.
Ukash as we know it does not exist since 2015. Today, it comes as the prepaid card with many differences from previous activities which caused the bad reputation for this payment method. Ukash is certainly trying hard to make their clients safe and secure.
However, Ukash travel cards will close in February 2017, after less than a year of its existence. The company says this is because of raging competition they are unable to compete with on the market. Both the Travel Money Prepaid Card and the Prepaid Mastercard will be closed as of 21 February. It is recommended for all Ukash users to spend the remaining balance or transfer the money on to the bank account before the closure date.