4 Tips for Avoiding Money Transfer Scams

U.S. consumers lose millions of dollars each year to scammers.


Studies show that 1 in 4 scammed Americans is a victim of a wire transfer fraud. In a time where sending money online is not only common but also accessible, it is no surprise that there are those who have chosen to take advantage of the system.

There are many different tactics and schemes that scammers use to try and cheat money from you. They love money transfer scams since there is no way to refund or stop the transaction once it has begun.

Every scam always ends in the same way: You are asked to wire money. Unfortunately, if you fall into the trap of a scam, that money is probably gone forever.


Here are four tips on how you can avoid running into money transfer scams that will rob you.

1. Never Wire Money to Strangers

Money transfers can be very useful when you want to send funds easily and quickly. However, you will want to limit that to only sending money to people you know and trust.

That is because wiring money is like sending cash: Once it is sent, you cannot get it back.

Scammers will often insist that people wire money because it is almost impossible to stop or trace the transfer.


A good rule of thumb is never wire money to strangers or someone you have never met in person.

2. Never Deposit a Check from a Stranger

Fake check scams are also increasingly popular versions of money transfer scams. A scammer usually will send you a fake check to pay for goods or a service. They will usually send you an amount that exceeds the asking price.

Then, they will then ask you to cash the check and wire the extra amount back to them.

What ends up happening is that the check will bounce, and you have not only lost the money you already wired to the scammer, you will be responsible for any money you withdrew.


3. Don’t Open Suspicious Emails

Sometimes, scammers will send unsuspecting people emails that say they have won something or that ask for personal information. Often, these emails will have hyperlinks for you to click on.

The best thing to do is to avoid opening any suspicious emails in the first place. But if you do, definitely do not click on any hyperlinks. These hyperlinks often times leads to websites that can look very legitimate.

It may ask you to enter personal information. Once you submit that, scammers will have access to your personal details and sensitive information.

Read more: ‘Recognize Suspicious Email & Websites’ ยป


4. If It’s Too Good to be True, It Probably Is

There are many situations where you can find yourself a victim of a money transfer scam.

For example, there was a problem with a recent online purchase and the retailer needs you to wire money before they can send the goods. Or, you find a job advertised online that sounds perfect, so you work from home and earn tons of money each month but you must first pay the application fees.

Unfortunately, many people fall for these scams every year. So remember: If it seems too good to be true, it probably is.

Watch Out for Money Transfer Scams

Transfer scams are a very dangerous form of fraud. If you aren’t paying close attention, it is very easy to fall into a trap. Scammers have become very sneaky in their ways of winning your trust and confidence. Always try and use safe and secure ways when sending money on the internet.


If you must send money online to someone you have never met, it is always wise to run a quick search on the internet and see if there is any information on the receiving party.

Check us out for more tips on how you can protect yourself when sending money online.