What are the signs of a wire transfer scam?

Wire transfers are a fast and convenient way to send money to someone, but they can also be a target for fraudsters who want to trick you into sending them your funds. A wire transfer scam is when someone contacts you and asks you to send them money through a wire transfer service, such as Western Union or MoneyGram, for a fake or fraudulent reason. They may claim to be a relative in need, a prize or lottery winner, a tax or legal authority, a seller or buyer online, or a romantic interest. However, once you send the money, you have no way of getting it back or verifying the identity of the recipient. Here are some signs of a wire transfer scam that you should watch out for.

1 Urgency and pressure

One of the most common signs of a wire transfer scam is when someone pressures you to act quickly and urgently, without giving you time to think or verify their story. They may use emotional manipulation, such as saying they are in danger, in trouble, or in love with you. They may also threaten you with legal consequences, fines, or penalties if you don't comply. They may even try to convince you to keep the transaction secret from your family, friends, or bank. These are all red flags that someone is trying to scam you.

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Keith Lorigan

Senior Mortgage Advisor | NMLS# 1000515 | Commercial & Residential Lending | Investors | Realtors | Trusted Source for Optimal Mortgage Options to Satisfy Your Clients | High Integrity
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In the mortgage business, I’ve seen a scammer contact the borrower as if they were the title agent and nearly have the exact same email signature as the title agent. The message was essentially saying they needed to wire the remaining cash to close or else they could loose the house and their deposit. The red flag was the request was 2 weeks away from closing and normally borrowers wire funds the day before or the day of closing. The fake email also said they were not reachable the remainder of the day but the wire still needed to take place. And of course once my client forwarded the email it was clear it was not the email of the title agent.

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Jaime Zuluaga

Realtor
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Arnabi Ghosh

Creating Content with Canva
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Beware of wire transfer scams where scammers pose as trusted entities. For instance, you receive an email claiming to be from your bank, urgently requesting a wire transfer to rectify an issue. The email seems legitimate but contains subtle errors. If you proceed, funds go to the scammer. Always verify such requests directly with your bank, using official contact details. Be cautious with unexpected requests and scrutinize emails for authenticity to avoid falling victim to deceptive wire transfer scams.

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2 Unusual or suspicious requests

Another sign of a wire transfer scam is when someone asks you to do something unusual or suspicious, such as sending money to a stranger, a foreign country, or multiple recipients. They may also ask you to pay fees, taxes, or shipping costs upfront, or to send more money than you agreed to. They may also ask you to provide personal or financial information, such as your bank account, credit card, or social security number. These are all ways that scammers can access your money or identity.

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3 Inconsistency and error

A third sign of a wire transfer scam is when someone's story or communication is inconsistent or contains errors. For example, they may change their name, location, or reason for contacting you. They may also have poor grammar, spelling, or punctuation, or use a generic or impersonal greeting. They may also send you fake documents, such as checks, invoices, receipts, or identification cards, that have errors or look unprofessional. These are all clues that someone is lying to you.

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4 How to protect yourself

The best way to protect yourself from a wire transfer scam is to never send money to someone you don't know or trust, especially if they contact you unsolicited. If someone claims to be a relative, a friend, or an authority, verify their identity and contact them directly through a known phone number or email. If someone claims to be a seller, a buyer, or a prize provider, check their reputation and reviews, and use a secure payment method that offers protection and dispute resolution. If someone claims to be a romantic interest, be cautious and do some research on them, and don't send money for travel, medical, or other expenses.

If you suspect that you are a victim of a wire transfer scam, report it to the wire transfer service, your bank, and the Federal Trade Commission (FTC) as soon as possible. You may also contact your local police or the FBI if the scam involves a large amount of money or a criminal activity. Remember, wire transfers are irreversible, so act quickly and don't let scammers take advantage of you.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the signs of a wire transfer scam?

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1 Urgency and pressure

2 Unusual or suspicious requests

3 Inconsistency and error

4 How to protect yourself

5 Here’s what else to consider

Banking Relationships

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