Even if you haven't tried sending money abroad yet, you might have heard of wire transfer scams and remittance frauds. Read this article to find out how to spot a fake transfer pattern and – of course – what the safest way to send money without getting scammed is.
Money transfer fraud statistics
Money transfer scams overview
How to protect yourself from money transfer scams
How to choose a reliable money transfer service
Money transfer fraud statistics
Unfortunately, money transfer scams are pretty common nowadays. According to a recent joint report by the European Banking Authority and the European Central Bank, the payment fraud amount in the European Economic Area totalled 4,3 billion EUR. In the first half of 2023, the number accounted for two billion EUR. Even though these numbers show a slight decrease year-to-year, they are still huge. The same report indicates that transactions involving a counterpart outside the EEA are particularly vulnerable to fraud – so wire transfer scams remain a problem. Indeed, the complexity of international remittance and the different security protocols involved are challenging for all the companies providing money transfers.
Money transfer scams overview
Understanding the typical money transfer fraud schemes is essential if you want to know more about fraud protection for cash transfers and digital remittances. Let us take a look at some – remember, the criminals keep implementing new patterns, and new wire transfer frauds emerge every day. Sometimes, the scammers persuade the victims to send them money – so simply figuring out how to spot a fake wire transfer is not enough. You must stay vigilant to avoid money transfer scams and save your assets.
Phishing scams
Can a wire transfer be fake? Scammers pose as legitimate financial institutions, money transfer services, or government authorities. They send phoney money transfer messages via email or social media asking the victim to provide a confirmation code from their bank, presumably needed to confirm the transfer. After the code is provided, the money is credited from the victims' account. Besides fake wire transfers, phishing schemes may involve requesting additional details, so scammers may get access to sensitive information and commit identity theft.
Read our article to learn more about phishing and to stay protected.
Advance fee frauds
The following scheme does not involve a fake wire transfer but still results in money loss. The victim may receive a message promising a large sum of money (e.g., an inheritance, lottery win, or business deal) in return for a small 'advance fee.' Scammers often fabricate a reason why the victim needs to send money upfront, such as legal fees, taxes, or processing costs. Once the money is sent, the scammer vanishes, and the promised windfall never materialises.
Romance scams
Online relationships started via dating platforms, social media, or messaging apps may seem picture-perfect until the victim is asked for money. Common reasons include claiming an emergency, needing money for travel, or financial issues. The scammers may claim to return the money and provide fake money transfer messages, manipulating the victim to pay them more.
Overpayment scams
In this money transfer fraud, the scammer 'overpays' for an item or service using a fake check or payment. The scammer then asks the victim to return the excess amount. By the time the victim realises that they came across a fake wire transfer, the money they sent is gone.
Fake charity scams
Wire transfer scam plotters exploit crises (natural disasters, pandemics, etc.) to ask for donations via money transfers to fake charities. The scammers often create realistic-looking websites and social media profiles to appear legitimate. Victims, thinking they're helping a good cause, end up sending money directly to the scammers.
Tech support scams
Fraudsters pretend to be from well-known tech companies, claiming that the victim's computer or device has been hacked or infected with a virus. Ironically, they may name a money transfer fraud scheme as a reason. They convince the victim to send a fee through an international money transfer to 'fix' the issue. In some cases, scammers also install malicious software to steal personal information.
How to protect yourself from money transfer scams
These tips will help you avoid losing money:
- Stick to reliable companies
Check legal information at the bottom of a website, and only use licenced apps from official stores. Do not rely on uncredited services.
- Check the details
Make sure that the recipient's details are correct before confirming the transfer. If you have received an unusual message – do not follow its links.
- Be cautious of unsolicited offers
It likely is if something sounds too good to be true (prizes, investment returns, deals).
- Protect your data
Do not disclose sensitive information, like your card's CVC/CVV code or a confirmation code from your bank. Make sure your password is strong.
- Don't rush
Scammers often pressure victims to send money urgently. Take your time and verify the situation before making any transfers.
- Report scams
If you've been targeted or fallen victim, report the incident to authorities and the relevant money transfer service.
How to choose a reliable money transfer service
So, what is the safest way to send money without getting scammed? Many remittance services follow robust security standards, and Profee is no exception. Here is why you can trust us:
- We are a licensed company
You may check the details in our legal documents or at the bottom of our website. We are PCI DSS compliant, ensuring your transfers are safe with us.
- We are attentive to details
The money for the transfer is only credited from your account after you confirm that the details are correct.
- We offer transparent terms
We provide little to no fees and market-beating exchange rates thanks to the technologies we use. Our terms are clearly displayed on the website or app.
- We are ready to help
Our support team is prepared to step in whenever you feel confused or suspect a scam. Your safety is our top priority.
