How can you spot potential wire transfer scams and protect yourself from becoming a victim? Given that in 2021 alone, the FBI reported over $6.9 billion was lost to cybercrime, surpassing the previous year’s losses by about $2 billion, learning to protect your money is essential. Learn about the red flags and phishing schemes hackers use to access your personal information and ultimately drain your bank account. Since identity theft is the number one type of fraud reported by the Federal Trade Commission (FTC), with 1,434,695 cases reported in 2021, protecting yourself is essential.
Let’s talk about Zelle, Cash App, Apple Pay, Google Pay, and payments made using your email and phone number.
The best way to protect yourself from wire transfer scams is with these forms of payment, to make sure you are sending the money to the correct recipient. These legitimate companies will never request that you send a payment to your bank, yourself, or anyone else. Additionally, you will never be required to share your financial information, such as your login, password, one-time access code, or PIN. If a scammer asks you to do so, immediately stop correspondence and contact reportfraud.ftc.gov.
Steps to avoid online payment Wire Transfer Scams and shopper fraud.
By 2026, 24% of retail purchases will take place online. As a result, consumers need to be aware of potential red flags to look out for. In particular, anyone can make a fake website and pose as a legitimate company with products to sell. With this intention, the fraudster can simply collect funds and never send products, or the large-scale scam is to contact you based on your shipping and personal information and collect more data over the phone. In most cases, they will ask for another form of payment; subsequently, don’t give out your credit card number over the phone.
Additionally, If your cell phone number is attached to your social media account, consider removing it. Scammers use these accounts to find your location and learn details about your life. Then all they have to do is send you a text message or give you a call, and they know everything about where you travel, where you live, and even the names (first & last) of your closest friends and relatives.
Technical support scams
In this case, the most common tactic is that a scammer posing as a technical support company like Microsoft or Intel contacts an unassuming person and tells them they have been a victim of an online cybersecurity attack. From this point, many of these criminals already have a person’s account number and contact information. The scam isn’t to have the victim give them any account information; they will ask to be allowed access to your computer virtually.
Once access is granted, the scammer will install malware on the device and gain full access and control to all of your information. These scams can devastate the victims because any information, files, photos, and personal data is not only used for financial fraud but also for blackmail.
How to avoid Real Estate Wire Transfer Scams.
Just like shopping scams, homebuyers are often scammed through email. In most cases, the victims are given false wiring instructions, and the fraudulent person receives the wired money instead of the title company. As a rule, the best way to avoid wire transfer fraud is to take your time and understand wiring instructions. Additionally, you never need a confirmation code or money transfer control number (MTCN) to pick up wired money. If someone requests this info, you’re being scammed. Remember, only wire money if you are 100% certain you are sending the money to a legitimate recipient because there is virtually no safeguard to retrieve those funds once the money has been sent.
How to avoid Wire Transfer Scams and check scams.
Don’t be rushed; contact your mortgage lender before you wire funds. Given that closing dates and escrow timelines can change, your lender will rarely ask for rushed money transfers and last-minute complication remedies, or you will lose the property.
Check scams are a little different. In this case, you will receive a check in the mail. Alongside the check will be instructions to deposit the check and then contact the sender. From here, the scammer will state that they need reimbursement for a small amount, and you can keep the rest for your trouble. The only issue is that the original check is a fake check, and by the time the victim figures that out, the wire transfer has already been processed, and there is zero protection for the victim.
Check, check, and re-check the recipient.
Last, never wire money to an unknown person or respond to new emails, no matter how legit they look. Scammers often send emails requesting victims to call a new number. Then, they send an email offering new wiring instructions. Especially if they are asking for last-minute changes, the mortgage lending process is steady, tried, and true. Therefore, you should personally talk to your mortgage consultant and title company if there are any changes. Because wire transfers are irreversible for the most part, you could lose more than just the sale of the house; you could lose all of your money, too.
Three common scams reported to the Internet crime complaint center:
Cryptocurrency scams: With regards to sending and receiving money with cryptocurrency, be extremely careful. In most cases, there is zero protection in place to recover these funds.
Foreign Investment Fraud: These wire transfer scams typically ask you to invest and wire money to a scammer in another country for investment purposes. Often, you will be asked to make a phone call to a number they provide. At this point, the fraudster will caution you not to alert the bank and to keep the deal a secret from your financial institution.
Grandparent/Family Emergency Scams: Frequently, these scams revolve around social media phishing. A scammer will scope out your social accounts and learn the names of your family members. At this point, they will urgently give you wiring instructions to help your relatives or friends in need.
What protection do you have if you have been a victim of a scammer?
Electronic Funds Transfer Act and the Truth and Lending Act protect certain types of transfers, but not all. If a consumer reports fraud to their banking institution, they are required to investigate the claim. If fraud is proven, the funds are returned to the consumer. There is a different set of rules when it comes to wire transfers. There is a loophole, and wire transfers are excluded from protection.
It should be noted that credit card, debit card, and home equity transfers are protected, but wire transfers are not. That said, the most secure form of protection is having unique passwords for all your financial accounts and never sharing similar passwords across multiple apps, especially financial institutions. Using a company like PayPal rather than your debit card for online shopping adds one more layer of protection.
If you or someone you know has been a victim of wire transfer scams, please report it to reportfraud.ftc.gov.
Let’s connect you to a Lender that can help you avoid wire transfer scams and get you into a new home.
Your home plays a major role in financial security. So, regarding your mortgage loan, you want to be sure you’re making responsible decisions. Undoubtedly, the loan process invokes insecurity in many people. In particular, navigating through a sea of paperwork and financial jargon can be unsettling without honest guidance. In fact, a lack of clarity can lead you down the wrong path and compromise your financial future.
You deserve to work with a lender who brings clarity and has your best interest at heart. Whether you are looking to purchase a home, help with refinancing, lower interest rates, or specifically ensure that you have made the best decision for the life of your loan, Mortgage Insiders can help you after helping thousands of families reach their goals to create stronger financial futures.
The steps are simple:
1. Schedule a Call: An experienced loan officer can discuss your needs and guide you through the possibilities.
2. Get Approved: We’ll help you through the application process and facilitate the steps for approval.
3. Exhale: Put your feet up and feel secure knowing you made the best decisions about your home loan.
With proper guidance, you can get your first home, accommodate your growing family, and start that renovation project—whatever goal is on the horizon. An alliance with Mortgage Insiders will give you the confidence to know that your mortgage loan is setting you up for financial success. Mortgage Insiders offers today’s latest financial news and mortgage trends. Check out their channel for current events.
