Cyber fraud and identity theft are growing crimes, and it is possible to get scammed out of your cash or into paying extra costs on a wire transfer payment. So, how can you get scammed on a wire transfer through your regular bank – and how can you avoid it?
It’s always advisable to be vigilant with any banking transactions, as even the most robust security settings can be vulnerable.
You’d also be wise to keep a close eye on your payment processing fees and exchange rates, as you might be surprised at how much you’re paying and how much you could save through a direct money transfer service.
Let’s check out the most common scams and how to ensure you aren’t a victim.
Common Wire Transfer Scams
First up, it pays to know which scams are most regularly reported. Here are some examples of red flags that should give you pause before clicking that send button:
- Being asked to wire money instead of using a secure money transfer service.
- Getting emailed a ‘check’ with a request to send a wire payment for processing fees, or shipping costs, for example. That could be a money order, a personal check, or a cashier’s check – and it’s often fake.
- Having a payee ask for your details to be able to withdraw or access a payment you’ve made. They might ask for the MTCN (money transfer control number) or a confirmation code. This information is never needed to access your payment.
- Text Telephone Relay (TTY) service communications. TTY is designed to help the hearing impaired with their banking transactions. Fraudsters often manipulate it since it is untraceable and extremely difficult to detect even a thick accent.
Don’t ever disclose personal or financial information online, be wary of making a payment to any recipient without verifying their details, and never worry about asking questions. Any authentic person or business will be happy to put your concerns at ease!
What Types of Wire Transfer Payment are Exposed to Potential Fraud?
Unfortunately, con artists and scammers use various techniques to get you to part with your hard-earned dollars. They won’t lose a wink of sleep over it and employ sophisticated methods that can fool even the savviest of us.
Typical examples include:
- Classified ads for fake goods. These are often high-ticket items such as a car or electronic item.
- Receiving a payment for a for-sale item through a fake check. If you sell something yourself, watch out for counterfeit checks (often for more than the sale price to catch you unawares!).
- Fake sweepstakes and competitions. You might receive an email or letter congratulating you on winning a huge prize and asking for a wire transfer to cover taxes or processing charges.
Fraudsters can steal your personal information, access your banking details, and even use phishing emails to install viruses on your computer secretly. Never open anything that isn’t from a known source, and don’t ever send money to anybody you don’t know and trust.
How to Avoid Wire Transfer Scams
As the payer, you are responsible for verifying the authenticity of your payment recipient. In most cases, your bank will offer limited support to help you recoup your stolen cash.
Should you have given out personal information, you should also keep a watch on your credit rating as a scammer may set up fake credit cards or loan accounts in your name and even register at your home address.
The best way to steer well clear of these fraud risks is to use a specialist money transfer service for all of your cash transfers, especially when sending funds overseas.
- Reputable money transfer providers are incredibly secure and will send your funds directly to your recipient as soon as you have remitted the balance.
- You can avoid paying unnecessary charges (along with vague taxes) by sending direct payments.
- Money transfer services use SSL encryption to provide a secure connection for online transactions and prevent scammers from intercepting your transfer and stealing your information.
- Intelligent monitoring software looks at regular transactions, registration information, and login locations to flag quickly when any suspected fraud occurs.
By using a safe, secure, and experienced money transfer provider, you enjoy comprehensive fraud prevention with any malware, fraudulent apps, or scammers being detected before they reach the first hurdle.
Give Cashero a try today, and rest easy knowing your transfers are secure.
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