How Wire Transfer Fraud Works
Quick Summary
Learn about different types of scams and how to spot wire transfer fraud to keep your money safe.
There are a lot of different types of fraud scams out there. Today, we’re talking specifically about wire transfer fraud and how it works. This type of fraud can be found in several scenarios—here are just a few to watch for:
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Your real estate agent’s email gets hacked. A fraudster then sends an email providing you with fake wiring instructions for your down payment.
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You receive an unusual email from a high-ranking executive at your company asking you to immediately transfer a large sum of money.
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Romance scams where someone you’ve been conversing with online asks you to send them money under false pretenses.
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You see a request on social media to donate to a charitable cause using a Venmo account (or other mobile money transfer app).
These are just a few examples. The best way to fight wire transfer fraud is to always confirm the instructions with the supposed requester using a different channel. If you received the information by email, give them a call to approve everything. If it’s a personal situation, like the romance scam illustrated above, you have a better chance of keeping your money safe if you run the request by a trusted friend or family member first.
Here’s a quick infographic to explain how wire fraud can work in the case of a real estate agent and their client:
How Wire Transfer Fraud Works
This type of fraud can take place in many different scenarios. The circumstance below involves a fraudster intercepting a wire transfer made for the purchase of real estate.
- Real estate agent and Mountain America member are conversing via email regarding a property purchase.
- Fraudster hacks agent’s email and monitors the conversation, waiting for the agent to tell the member to expect wiring instructions to wire their down payment.
- Fraudster then contacts the member, posing as the real estate agent, providing false wiring instructions to the Mountain America member.
- The member then contacts Mountain America and gives them fraudulent wiring instructions which they believe to be true.
- Mountain America wires the money to the account information provided by the member.
- Fraudster collects the money before anyone realizes the transaction was fraudulent.
