Increasingly, scammers are using cash sending services such as Western Union and MoneyGram to steal your money. The best practice is to never send money to someone you do not know and trust. Be especially wary of requests for money from people outside the U.S.
Here are a few best practices to follow:
- Never send money to pay taxes or fees on lottery or prize winnings;
- Never send your banking information to unknown individuals or businesses;
- Never send money in advance to obtain a loan or credit card;
- Never send money because of an emergency situation unless you have verified that the emergency is real and is not a ruse;
- Never send money from a check that you have deposited in your account until it officially clears, which will often take several weeks;
- Never send money for any gambling or other activities prohibited by law;
- Never send money to someone you’ve met over the internet but never seen in person.
If you believe you have been scammed, act quickly. Immediately request that the service stop the transfer. Unfortunately, if the transfer cannot be stopped, you likely will never see the money again. Here are some common scams involving money transfers.
Advance Fee/Prepayment
The scammer directs the victim to send money as an advance or prepayment for receiving a certain product, service, or investment.
Fake Check Scam
The scammer sends the victim a check to deposit in the victim’s account and instructs the victim to send money using the funds from the check deposit. The check then bounces and the victim is responsible for the funds transferred.
Overpayment
The scammer sends the victim a check in payment of a service or product that appears to valid but will eventually bounce. Typically, the amount of the check exceeds what the victim expects to receive, and he or she is instructed to send the excess to the scammer. When the check bounces, the victim is left responsible.
Employment
The scammer will send a check to the victim who has accepted a fake job offer. The check can be for multiple reasons such as a signing bonus, salary advance, or advance reimbursement for supplies. The scammer instructs the victim to send back any remaining funds. The check will then bounce, the scammer has the transferred money, and the victim is responsible for paying back the bank.
Emergency
Scammers will impersonate someone known to the victim or pretend to act on that person’s behalf and request money to deal with an urgent or emergency situation, such as a legal or medical issue.
Grandparents
This is a variation on the Emergency scam. The scammer will contact grandparents and impersonate either their grandchildren or person of authority such as a law enforcement officer, a medical professional, or an attorney. The scammer describes an urgent situation or emergency that requires money to be sent immediately.
Lottery/Prize
Victims are informed that they have won a large lottery prize or sweepstakes. The victim receives a check for part of the winnings and is told to pay a small amount to cover taxes and/or processing fees. The victim sends money for the taxes or processing fees and the check bounces.
Rental Property
Scammers advertise a vacation or rental property they do not own usually at a considerable discount. The advertisement may use accurate information about the property, including its location and amenities. Photographs and reviews may be included. Inevitably, a deposit or payment will be required and sent. Victims may not realize they have been scammed until the day they visit the property.