Fraud Cleanup

Wire Transfer Fraud: What the FTC Says You Should Know

Scammers push wires because the money is hard to trace and hard to get back. Here are the FTC's rules and what you can still do.

Someone you have never met wants money, and they want it by wire. That request alone is a warning. The FTC gives clear advice about wiring money. Here is what wire transfer fraud is, why scammers choose wires, and what the FTC says you can still do if the money is gone.

What wire transfer fraud is and why scammers choose wires

Wire transfer fraud is any scam that ends with you wiring money to someone who lied to get it. The FTC says scammers pressure people to wire money because it is easy to take the money and disappear.

The FTC says scammers can quickly pick up your money at any of the wire transfer company's locations throughout the world. And the FTC says it's nearly impossible to identify who picked up wired money or track them down. A wire does not carry the same protections you get by paying with a credit card. The FTC says scammers know you won't have the same protections you get by paying with a credit card.

The FTC also says scammers know that once you wire money to them, there's usually no way to get your money back. That is why the push to wire is the scammer's favorite move, and why the request itself should slow you down.

When the FTC says never to wire money

The FTC's advice is blunt. If any of these come up, stop.

  • Never wire money to anyone you haven't met in person. The FTC says this holds no matter the reason they give. Not a sweetheart, not a business partner, not a landlord.
  • Never wire money to anyone who pressures you into paying immediately. Pressure is a tactic.
  • Don't wire money to anyone who says a wire transfer is the only way to pay. The FTC says don't wire money to anyone who says a wire transfer is the only way to pay.
  • Never wire money to someone who tries to sell you something over the phone. The FTC says it's illegal for a telemarketer to ask you to pay with a wire transfer.
  • The government will never ask you to send money by wire transfer. The FTC says the government will never ask you to send money by wire transfer.

One more piece of advice covers everyone else. The FTC says report anyone who asks you to pay by wiring money, even if you did not send a cent.

Common wire transfer scams the FTC describes

The scenarios change, but the payment method stays the same.

Family emergency scams. The FTC says family emergency scammers call pretending to be a family member or close friend who needs money wired right away.

Prize scams. The FTC says scammers say you've won a prize and need to wire money back to cover taxes and fees.

Fake check scams. The FTC says the check in a fake check scam is fake, and it can take weeks for the bank to figure it out. The FTC says when the bank finds out the check was fake, the bank will want you to repay the money you withdrew. Scammers use this in several ways. The FTC says they use a check to overpay you for something you're selling online, then ask you to wire back the extra money. The FTC says scammers say a check is part of a mystery shopping assignment to evaluate a wire transfer service. Either way, the wired money is real and the check is not.

Rental scams. The FTC says scammers often put their own contact information on apartment or vacation rental ads and use photos they hijacked from someone else.

What the FTC says you can do if you already wired money

Act fast. The FTC says to ask the wire transfer company to reverse the transfer and give you your money back.

The FTC says scammers know that once you wire money to them, there's usually no way to get your money back.

The FTC says that if anyone demanded that you wire money, you should report it to the FTC at ReportFraud.ftc.gov. Do this whether or not the reversal works.

How to report wire transfer fraud

The FTC's reporting address is ReportFraud.ftc.gov. The FTC says report anyone who asks you to pay by wiring money, not just the ones who succeed.

For the wider picture of how these schemes work, see wire fraud. For the reporting process itself, start with how can I report a scam.

The FTC's advice here is short. Do not wire money to anyone you have not met in person. Do not wire it to anyone who rushes you, claims it is the only way to pay, or sells to you over the phone. And know that the government will never ask you to send money by wire transfer. If any of that has already happened, ask the wire company to reverse the transfer, then report it at ReportFraud.ftc.gov.

Sources