Avoiding money transfer scams: Red flags every expat should know

Being an expat means dealing with many uncertainties. Migrants are also often targets of wire transfer scams. In this article, we’ll list some common money transfer scams and show ways to avoid them to answer the question, “Are wire transfers safe?”

Wire transfers

What is wire fraud?

This term is used to describe scam schemes in which the Internet or other telecommunication tools, such as phone calls, faxes, and emails, are involved.

We’ll discuss expat scam schemes, but you may also be interested in examples of holiday fraud and how to avoid them.

Are wire transfers safe?

In most of the cases, they are. Even though scammers find more and more ways to play on your emotions and take your money, don’t be afraid. You can spot money transfer scams and be safe if you're attentive and calm.

Can a wire transfer be reversed?

Usually not, but depending on your situation and speed, you may be able to return the money back. Contact your bank and other authorities as soon as you understand that you became a victim of a fraud.

Now, let’s look at the examples of wire fraud.

Fake emergency

One of the examples of wire frauds is a fake emergency scheme. The scammers pretend to be your friend or a relative who got hospitalised, arrested, or ended up in a dangerous situation. They insist that it's a rush and that you should send money as fast as possible. It may seem like a secure money transfer, but in reality, it is not.

How to avoid: Always find other ways to contact your friend or a family member. Don’t send funds until you have certain proof that the danger is real.

Rental and housing scams

This type of money transfer scams may be hard to spot. When expats find a suitable apartment (as they think) and contact the landlord, they are asked to pay a deposit or first or two months’ rent before seeing the property. The listing turns out to be fake.

How to avoid: Don’t pay before visiting the place. If it’s impossible, verify the landlord’s identity and ask other expats for flat recommendations.

Romance scams

Dating apps are a good way to meet new people in an unfamiliar country. However, some take advantage of that. Scammers build online relationships with expats, eventually ask for money, and tell you it’s a secure money transfer. After receiving it, they start ghosting.

How to avoid: Avoid relationships that start with asking for funds. It’s a typical money transfer scam. Build trust first, and go on an offline date first. And then, when the next Valentine’s Day comes, make it unique by using some romantic ideas.

Tax and immigration scams

Let’s be honest: receiving an email or a call from the authorities is the worst nightmare for expats. So, when you see a message that you must pay taxes or visa fees, don’t panic because it may be one of the wire transfer scams.

How to avoid: Government agencies never demand immediate payment via wire transfer. Always verify with official sources.

Currency exchange scams

Another headache for migrants is the exchange of currency. Remember that there is no such thing as a free lunch, so when a person or a company promises unrealistic rates and no fees at all, it’ll probably not be a secure money transfer.

How to avoid: Use only trusted money transfer services such as Profee.

Read about other scam schemes here.

What is the safest way to send money online?

The answer is — Profee. It is a licenced service that offers secure money transfers. The company follows strict PCI DSS standards and takes care of your funds. Thousands of expats already enjoy the beneficial offer, so if you want to support your family back home or invest in a new business, use Profee.

Conclusion

In this article, we discovered money transfer scams, such as fake emergencies, rent, romance, tax/immigration, and currency exchange schemes. Never rush and be cool-headed to live a peaceful expat life. We also found out what one of the safest ways to send money is. Transfer with Profee to take care of your loved ones.