United States consumers lose millions of dollars each year to thieves using wire transfers as part of their scams.
Western Union, Moneygram and similar businesses allow you to send money quickly. Their services are useful for transmitting funds to friends, relatives and others you know well. But cons frequently try to take advantage of victims by convincing them to wire money to a stranger, usually someone in Canada or overseas. The results can be tragic - our office recently learned of a Spokane man who lost $4,500 to such a scam.
The initial hook can take many forms: Someone wants to buy something you advertised, or they want to pay you to do work at home. You're told that you won a sweepstakes or were selected for a loan. A foreigner asks for your help withdrawing money from a U.S. bank account or transferring funds from an offshore fund.
In every case, the scam ends the same way - you are asked to wire money, and when you do it's gone.
The most important thing for consumers to remember is this: Never wire money to someone you don't know or you haven't successfully conducted business with for a long time.
Any of the following "red flags" should signal a potential scam:
You are asked to wire money.
You are sent a check in connection with a payment request. Cons often win their victims' confidence by sending a fake check for more than the amount of the purchase, or to cover so-called processing fees, shipping costs or other expenses. It may be a cashier's check, personal check or money order. They instruct the victim to cash the check or money order and send them a portion of the money by wired money transfer. Even if the check looks authentic and your bank cashes it, you're not safe. Banks are obligated to make deposits available within a few days, but it can actually take weeks for a check to clear. Once the con's check bounces, the bank will withdraw the funds from your account and hold you liable for any overdraft fees.
The contact indicates a confirmation code or money transfer control number (MTCN) is needed before your money can be withdrawn. This is a blatant lie. Once you wire money, it can be picked up immediately.
The contact implies that a wire service or online classified Web site offers a purchase protection policy. Never take a stranger's word. Instead, check directly with the site. Western Union, Moneygram and Craigslist, for example, do not offer any sort of purchase protection program.
A call or e-mail appears to originate from overseas. Many cons operate from overseas. They use the language barrier to engender trust by seeking the "assistance" of their victims. Steer clear of sloppy Web sites and messages that are not professionally written.
Wire transfers are often associated with these types of scams: classified ad purchases involving fake buyers or sellers, foreign lotteries and sweepstakes, advance-fee loans, bogus secret shopper programs, work at home schemes, and "Nigerian" fund-transfer scams.
Visit www.atg.wa.gov/AskAG for more information about such scams.[[In-content Ad]]
