Money wiring scams involve a fraudster persuading a victim to send money electronically through a wire transfer. There are many different services that can be used to wire money: Western Union, MoneyGram, and bank wires are a few. Money wires require guaranteed funds in order to be sent, and once that money is gone, it is very hard to get it back. In fact, it has been my experience that it is almost impossible to retrieve those funds. Scammers can pick up your money at any of the wire transfer company’s locations worldwide. It is just not possible to identify and/or track down all the people who perform this scam. Financial Institutions have little to no recourse on wire transfers as well. All we can do is request that the receiving bank return the funds, but they are not required and have no obligation to do so. If they refuse, there is nothing else we can do. Scammers know there are limited protections in place for money wires, therefore they urge their victims to choose this form of payment. Let’s find out what types of scams commonly use money wiring fraud, some warning signs, and how to protect yourself.
Common Types of Money Wiring Scams:
- Romance Scams
- Emergency or Grandparent Scams
- Prize or Lottery Scams
- Online Purchase Scams
- Rental or Real Estate Scams
- Government Impersonation Scams
- Fake Check Scams
Warning Signs of a Money Wiring Scam:
- You are asked to wire money to a stranger—someone you have never met in person.
- The sender uses high pressure tactics to create a false sense of urgency.
- You are told to keep it a secret.
- The deal sounds too good to be true.
- You are asked to pay in advance for something; a large purchase without having physically seen the merchandise or taxes and fees on a prize.
How to Protect Yourself:
- The best way to protect yourself from a Money Wire Scam is don’t send the money! Never send money to someone you have not met face-to-face.
- Verify the story and or product is real before sending money to anyone.
- Resist those pressure tactics.
- Don’t trust caller ID or random emails as they can be faked.
If you or someone you know has fallen victim to a Money Wire Scam, contact the company you used for the wire immediately upon realizing. Tell the company it was a fraudulent transfer and ask them to reverse it and ask about the possibility of getting your money back. Chances are they won’t be able to refund, and you have to be prepared for the realization that your money is gone. Contact MoneyGram at 1-800-926-9400; Western Union at 1-800-448-1492; Ria (non-Walmart transfers) at 1-877-443-1399; Ria (Walmart2Walmart and Walmart2World transfers) at 1-855-355-2144. If you use a financial institution to wire money and you feel that it was a scam, contact them as soon as you know. You should report any scams or fraud to local law enforcement, and you can report to the FTC at reportfraud.ftc.gov.
Bottom line, fraudsters are thinking up new ways to scam people daily. They count on lack of public knowledge of common scams to catch their victims off guard and like thieves in the night come to lie, cheat, and steal. By educating ourselves , knowing the warning signs, and refusing to give in to pressure tactics and too good to be true deals, we can better safeguard our hard earned dollars from these criminals.
Tara Montgomery
Fraud Specialist The Exchange Bank of Alabama
