Things To Consider Before Wiring Money
Scammers often push you to wire money because it allows them to quickly take your funds and vanish. Using wire transfer services is similar to sending cash; once the money is sent, it is usually irretrievable. Always avoid wiring money to someone you haven’t met in person, regardless of their explanation.
Why Scammers Pressure You to Wire Funds?
If you need to send money to someone you know and trust, wiring money can be a quick and effective method. However, be aware that scammers may also attempt to convince you to wire money to them.
Scammers prefer wire transfers because once the money is sent, it is nearly impossible to recover. They can quickly collect the funds from any of the wire transfer company’s global locations, making it extremely difficult to identify or track them down. Scammers also know that wire transfers lack the protections that come with credit card payments. If someone asks you to pay this way, report them immediately.
How to Prevent Falling Victim to a Scam?
To avoid having your funds stolen and to protect yourself from scammers:
- Never wire money to anyone you haven’t met in person using their chosen wire transfer services. Regardless of the reason given, it’s likely a scam.
- Do not transfer money to any individual claiming to work for a government agency such as the IRS, SSA, FTC, Customs and Border Protection as well as more popular companies. This is a scam since the government will never initiate such payment methods.
- Never send money to anyone who tries to pressure you to immediately transfer funds
- Never transfer money to anyone who claims that wire transfers are the only method accepted
- Never send money to someone selling a product or service over a phone call. Telemarketers are not allowed to ask customers to pay via wire transfers.
How to Detect Wire Transfer Scams?
Here are some common ways scammers try to convince people to wire money:
Family or Friend in an Emergency Scam
If you receive an unexpected and frantic call from someone claiming to be a family member or close friend in trouble and asking you to wire money right away, it’s crucial to approach the situation carefully. Take a moment to assess the situation critically.
Ask for specific details about the emergency that only your family member or friend would know. Scammers often create urgency to prevent you from questioning the validity of the call. Don’t rush into sending money without verifying the situation thoroughly. Scammers may use advanced technology like voice cloning to mimic the voice of your loved one.
If possible, contact the supposed family member or friend directly using a known phone number or communication channel to verify their identity and the authenticity of the emergency.
Rental and Apartment Scam
Apartment and vacation rental scams typically involve responding to an ad with unusually low rent or fees. When you contact the supposed landlord or agent, they insist on payment via wire transfer services for application fees, security deposits, rent, or vacation rental fees. Often, scammers use stolen photos and contact information to deceive potential renters. After wiring the money, the scammer disappears, leaving you without a rental or vacation accommodation.
Counterfeit Check Scam
In this scam, someone sends you a fake check and asks you to deposit it into your bank account. They then pressure you to quickly wire some or all of the money back to them or to another person. Because the funds initially appear in your account, you may assume the check has cleared and comply with their request. However, it can take weeks for the bank to discover the check is fake. Once uncovered, the bank will expect you to repay any money you withdrew, even if you’ve already sent it to the scammer.
- Scammers invent various stories to persuade you to deposit a check and wire money including:
- Fake Prize Winnings: Claiming you’ve won a prize and need to wire money back to cover taxes and fees.
- Job Scams: Falsely offering you a job, sending a check for supplies, and instructing you to wire part of the money back.
- Mystery Shopping Scams: Pretending the check is for a mystery shopping assignment to evaluate a wire transfer service, then asking you to wire part of the funds elsewhere.
- Overpayment Scams: Sending a check to overpay for something you’re selling online, then requesting you wire back the excess amount.
Lottery and Other Prize Scam
Scammers perpetrating fake sweepstakes, prize, or lottery scams often contact victims via phone calls, texts, emails, or letters, claiming they’ve won money or a prize. However, they always invent reasons why you must wire money first, such as covering shipping and handling, taxes, or processing fees to receive the prize. It’s crucial to recognize that legitimate prizes do not require upfront payments, and any request to wire money in exchange for a prize is a clear indication of a scam.
Romance Scam
Romance scammers operate by creating deceptive profiles on dating sites, apps, and social media. They initiate contact, often building rapport and trust over time through frequent communication. Eventually, they fabricate a story, such as a supposed emergency or desire to visit you and request money for expenses related to these fabricated circumstances.
Household Utility Scam
You receive a call from someone claiming to be from your gas, water, or electric company, threatening to disconnect your services unless you immediately wire money through a money transfer service. However, legitimate utility companies do not operate this way. You can quickly confirm the authenticity of any such calls by contacting the utility company directly using the phone number on your bill or visiting their official website.
How to Proceed If You’ve Wired Money to a Scammer?
If you used a wire transfer service to send money to a scammer, contact the company immediately. Inform them that the transfer was fraudulent and request them to reverse the wire transfer and refund your money.
If you initiated the wire transfer through your bank, contact them immediately to report the fraudulent transaction. Request that they investigate and see if they can reverse the wire transfer to recover your funds. To report anyone demanding that you wire money, visit ReportFraud.ftc.gov and file a report with the FTC.
