Learn How to Spot Common Wire Transfer Scams

Sep 25, 2023, 09:00 AM

Learn more about some of the most common types of scams and what to look for when spotting a wire transfer scam.

The method of transferring funds from persons or businesses electronically without the exchange of actual money is known as a wire transfer. It’s a convenient way to make payments or send money to friends or family members but wire transfers are also one of the most common forms of scams used by fraudsters. The immediacy of the payment and the difficulty involved to track down the scammer make wire transfers an ideal choice for someone wanting to steal your funds. 

Here are some of the most common types of scams and what to look for when spotting a wire transfer scam.

Tech Support Scams

Scammers like to take advantage of people who may not be too familiar with computers which is why tech support scams are so popular among online thieves. Oftentimes, a scammer will pretend to be calling from a reputable business claiming they can fix issues or remove viruses they'll say they found on your computer for a fee. Another popular tech support scam will involve giving you a “refund” for a product or service you may or may have not purchased. 

They’ll request remote access to your computer for both of these scenarios and instead of resolving any issues or actually refunding you any money, the scammer will instead use this access to either install malicious software that will steal your personal information or make you believe they have actually given you more than the intended refund amount and plead with you to refund them the money for fear of losing their job. 

Real Estate Scams

Whether you’re buying a house or renting an apartment, scammers are always on the lookout for unsuspecting victims in the real estate market. Homebuyers who are in the process of buying or refinancing are often likely targets for scams. The scammer will obtain your email address and will pretend to be a realtor, lender, or someone from the title or escrow company you may be familiar with. The call, message, or email will often entail an urgent request for money to be wired for fear of losing the property.

For renters, the scam usually involves a fake apartment or home ad listing. The ad will typically feature a great rental price that sounds too good to be true. Once contacted, you may be told you’ll need to pay for an application, security deposit, or first month’s rent via wire transfer only to find out there is no apartment. 

Romance Scams

Scammers will prey on people’s emotions and will often target people in the dating world. You don’t have to be on a dating site to be a potential victim as scammers will also contact victims on social media sites like Facebook, Instagram, and Twitter. Scammers will create fake profiles in an attempt to establish a relationship with the intention to request money or steal personal information.

Online Shopping

This popular scam can be hard to spot. Scammers will create fake websites that look very close to a legitimate shopping site often featuring amazing deals that may be hard to pass up. Once your shopping cart has the items you want to purchase, the scammer will ask that you pay via wire transfer or a mobile payment app and the shopper will never receive the items. 

Warning Signs It's A Scam

  • There’s a sense of urgency and you’re being asked to wire money unexpectedly
  • You’ve been sent a check as a “refund”
  • You’ve been asked to wire money to another country
  • You’ve never met in person
  • They are claiming to be from a government agency like the IRS or the SSA.
  • Is pressuring you to make a payment immediately
  • Demands the payment be made via wire transfer only

How to Stay Protected

Tech Support Scams

  • Never give remote access to an unverified representative, especially if you did not initiate the call.
  • If you believe there is something wrong with your computer, take it to a reputable company for a check-up.

Real Estate Scams:

  • If you’ve been contacted by a lender or other real estate representatives who are asking for a wire transfer, make sure you contact your mortgage consultants before doing so to verify if it’s a legitimate request.
  • Never call a number that is provided in the email. Instead, look for the official website and contact the business using that number.  
Online Shopping Scams:

  • Pay attention to the website and look for anything that may look off.
  • Beware of deals that are too good to be true.
  • Don’t pay for your shopping via wire transfer and stick with credit cards for an added layer of protection. 
Romance Scams:
  • If you feel you are being scammed, stop communicating with the person immediately.
  • Do a search for the person and the type of job the person has to see if other people have similar experiences.
  • Take a note from the MTV show, Catfish and do a reverse image search of the person’s profile picture to see if they are who they say they are.

What to do if you’re a victim of a wire transfer scam

If you’ve sent money to a scammer via a wire transfer, contact the nonbank money transfer provider used like MoneyGram or Western Union or your bank or credit union and report the fraudulent transfer and look into the possibility of getting your money refunded. You can also report the fraud to the Federal Trade Commission at ReportFraud.ftc.gov.

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