How Wire Transfer Fraud Works

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:

• Your real estate agent’s email gets hacked. A fraudster then sends an email providing you with fake wiring instructions for your down payment.

• You receive an unusual email from a high-ranking executive at your company asking you to immediately transfer a large sum of money.

• Romance scams where someone you’ve been conversing with online asks you to send them money under false pretenses.

• 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: