Money transfer fraud is a scam that has been around for decades. It’s also one of the most common types of scams out there, but it can be difficult to identify. In this article, we’ll introduce you to five types of money transfer fraud so that you can stay safe and avoid being scammed.
Charity scam
A charity scam is a fraud where someone pretends to represent a charity or collection agency and asks for money. This can be done through email, phone calls, or even in person.
Charity scammers will often ask you to send them cash by Western Union or MoneyGram. As per the experts at SoFi, “Wire transfers are convenient because you can make them over the phone and online as well as in person.” They may also ask you to give them personal information like your Social Security Number or bank account details.
Emergency scam
The emergency scam is a classic tactic, with scammers often posing as family members or friends who need money. The scammer might say that you have ruined the person’s credit and they need to pay off their debt before they can get a new loan or lease an apartment. Or sometimes the caller will claim that your friend, who happens to be on vacation overseas, has been injured in an accident and needs financial help while they recover.
If this sounds like something you would do for a loved one in real life, then it’s easy to see how someone could be tricked into sending money through wire transfer services like Western Union or MoneyGram after receiving such an email or phone call.
Lottery scam
The lottery scam is one of many types of advance fee fraud. Advance fee fraud refers to any fraudulent scheme that asks the victim to send money upfront in order to claim their prize or receive a favor. In this case, the victim is told they have won something and asked for an upfront payment to receive it.
The lottery scam is often carried out over phone calls but can also occur through emails or even text messages. Organized crime groups are usually responsible for running these scams and will often collect thousands of victims before moving on to another scheme and country.
Immigration scam
These are the immigration scams you should know about
- You will be told you have won the lottery and need to send money for taxes or fees to receive your prize.
- You will be told that you are entitled to a government grant, but in order to get it, you need to send money.
Relationship scam
Here are some common types of relationship scams:
- A family member, friend or acquaintance asks you for money to come to visit you.
- Someone asks for your help because their child is ill.
- Your friend asks for money for their wedding, or someone in the family asks for money because they’re getting married and need cash.
- Someone in the family has passed and needs financial support from everyone else in the family to pay funeral expenses.
These things can happen to anyone, so take good precautions
- Don’t be afraid to ask questions. If you’re asked to wire money to an unfamiliar location, or if someone tries to pressure you into sending money immediately, don’t hesitate to ask for more information.
- Don’t be afraid to say no. If you feel uncomfortable about a transaction and want out of it, that’s okay—it’s not your responsibility as a receiver of funds (or a sender) whatsoever. You can always say no! There are lots of ways people might try and get around this—but they won’t succeed if they’re dealing with someone who knows better than them
Fortunately, there are ways you can protect yourself from these types of scams. You have to consider a few things before you transfer money between banks. First, never send money to someone you don’t know. Second—and this is important—always check the phone number on your bank statement before paying off any debt!
