At the heart of all fraud is a mechanism that tries to convince you to part with your money or financial information, and transferring funds abroad can make you particularly vulnerable to money transfer scams. Con artists are more sophisticated, becoming accomplished fraudsters of the digital age, which means it's more important than ever to be alert to potential scams and how to avoid being defrauded when sending money overseas.

There are many types of money transfer scams, and the most basic are often easy to spot. However, modern-day scammers often pretend to be reputable organisations to secure sensitive information. While you might shrug off a bogus lottery win because you know you didn't buy a ticket, it can be harder to ignore a message from what appears to be a trustworthy source. Remember that your money transfer provider would never ask for personal details over the phone or via email.

How to spot a red flag

• There is resistance to changing the medium of communication – for example, your contact insists on communicating over email, and you can't speak to them on the phone
• Transfer scams often have a false sense of urgency. Fraudsters often try to use fear as a tactic – for example, emails warning that your account will be shut down or you’ll miss out on a prize if you don’t click on a provided link within a specific time frame.
• Spelling and grammatical errors
• A company has no online presence or an unsecured website
• The amount requested is not consistent with previous payments or with the product or service you want to purchase
• It seems too good to be true
• You have a gut feeling something is up

 

If in doubt, stop, think and question the situation.

Common scams to be aware of

Emergency money transfer scams

In an emergency scam, scammers take advantage of putting you under enough time pressure that you're unable to do your due diligence. They often pretend to be family members or a distant relative needing financial help. Make sure you remain calm and take your time to understand what is being asked of you. It's unlikely a legitimate request for sending money overseas will need to be executed immediately.

Lottery scams

These kinds of scams usually involve being told you've won a considerable amount of money or a grand prize in a draw. The scammer will ask you to send money to release funds or to cover any taxes on the cash or prize you've won. Never transfer funds ahead of receiving a prize.

Always be hyper-diligent if you ever receive a call or email saying you've won a prize and you've not entered a draw, and still exercise some caution even if you have done.

Relationship scams

 

Relationship or long-lost love scams remain one of the most popular scams for fraudsters because romantic feelings can easily eclipse logic and reason. The scammer will try to quickly build trust and establish an emotional connection, using geographical distance as an excuse for not meeting before pretending to need money. Scam artists will often dangle the possibility of a meeting if they can raise enough money to travel from a foreign country as a reason for transferring funds electronically. You should never transfer any money to someone you've never met.

Ways you might be targeted

Phishing

More than 96% of phishing attacks happen via email.

One of the most common gambits is a message reporting fraud which asks you to click a fraudulent link, so that you attempt to log in and check. This allows the scammer to steal your financial information. In these cases, your concern may mean overlooking details such as slight email or web address misspellings. The best approach is to never click on a link or confirm personal details over the phone.

Log in to your account independently, or call or visit your branch and check whether you are experiencing a fraud attempt. If it's legitimate, you can then take action, and if it is a scam artist, you will have avoided getting caught in their trap and given yourself some peace of mind.

Smishing

WhatsApp and text message impersonation scams are on the rise. A common ruse is when a scammer pretends to be a family member or friend who has lost or damaged their phone – to explain why they're messaging from a different number. The message will open with a generic approach, such as "Hi Mum" or "Hi Dad." They will then claim that they urgently need money for a new phone or a bill.

Be cautious if messaged by a family member from an unknown number – if you can, contact that family member back on a trusted number you have saved for them to verify the request. Always double-check directly with family members via other channels, particularly if they are rushing you to make a payment, before transferring money to them.

Email compromise

Email compromise is when a fraudster sends an email message that appears to come from a known source making a legitimate money transfer request.

Someone you regularly deal with will appear to send an email with different banking information than usual. If you're asked to update the bank account details you have for someone – or if you get sent new bank details to pay a bill – always verify the information by speaking to someone or independently finding an email online to check the request is real. Look out for spoofed email addresses where small details have changed. For example, @ExampleCompany.com, might come from @ExampleC0mpany.com.

Remember, don't click on anything in an unsolicited email or text message asking you to update or verify banking information. It could be an attempt to steal money. Look up the company's phone number independently and call the company to ask if the request is legitimate. Again, be especially wary if you are being pressed to act quickly.

Top tips to help you protect yourself

The good news is there are measures you can take to protect yourself and avoid money transfer scams when sending money abroad. Here are some of the most effective ways to prevent yourself from becoming a victim of transfer fraud.

Safeguard your personal details

Don't give out financial information over email or text; make sure you have checked who you're speaking to before sharing them over the phone. If you do have to share any sensitive data over the phone, ensure you are somewhere private and can't be overheard.

Only send money to people you know personally

Don't transfer money to strangers, and avoid wiring money to anyone you haven't met – even if you think you have a personal relationship. If you can't meet someone in person, ask for proof of identity, address, and valid contact details.

Break up large sums

If you think it is necessary to send funds, don't send it all at once, and consider sending a test payment. Once you've sent the money transfer, you can confirm directly with the recipient to see if they've received it, as well as the amount received. You can also try missing the required deadline. Scammers will extend a deadline to try and coax you into making the payment.

Protect your devices

Install and maintain your devices’ anti-virus software and ensure you have a firewall on your computer. Keep your login details secure, use strong passwords and change them regularly, and be careful when using computers in public places. Also, consider using two-factor authentication.

Verify using known contact details

Always verify by calling a contact on a known number, whether a family member or business supplier, before you send money to someone to check the validity of the request. Don't just reply to emails or use the details they send you; get in touch with someone you know.

Use an international payments service you can trust

Moneycorp is committed to providing a safe and secure environment for our clients to conduct financial transactions. However, it’s essential to be aware of the strategies criminals use to lure you into a money transfer scam.

Remember, Moneycorp will never ask you to move or send money to other accounts. If you are contacted by someone saying they are from Moneycorp, and they ask you to transfer money to a “secure account,” refuse to do so.