How to avoid and what to do in the event of a fraudulent wire transfer?

How to identify a wire transfer fraud?

A wire transfer is any movement of funds between banks by order of a person or institution. Doing it the classic way, although not risk-free, was done in a controlled and secure environment: you went to a bank office, an employee identified himself, executed the order and that was it. The use of the internet to make these transactions has added speed and convenience to the matter, but it has become open to bank account fraud. It's the way criminals use to deceive, obtain your data and steal your money. In the following section we'll explain the main cases of wire transfer fraud.

Wire transfer fraud: what types are there?

Suspicious emails, spoofed websites and text messages on your phone are some of the channels that are used tocarry out a bank account scam. Learn about the main types of scams below.

E-mail or SMS scams (phishing)

This is one of the most common bank account scams. Also known as phishing, by 2021 83% of Spanish companies suffered from it and it's estimated that in Mexico the number of cases increased by 61% during the covid pandemic. These are frauds that seek to get your data after receiving an email, or SMS message whose content -often alarming- includes a link or a file to access your data (passwords, account numbers or addresses). The important thing to note is that, whoever the sender is, they are usually pretending to be a company or institution that you would trust. They will try to scam you by claiming that a suspicious purchase has been detected, or that you need to update your account details.

Online shopping fraud

With the increase in online commerce (its growth was more than 50% between 2019 and 2021), this type of bank account internet scam has been on the rise. It occurs on sites pretending to be sales websites. Although it’s not the general rule, they may include products that are unexpectedly cheap or with promotions that would normally be unrealistic. By falling into this trap, you'll either buy products that will never reach you, or share your data with a cybercriminal who will then take your money. Research by the U.S. Better Business Bureau revealed that 40% of reports of fraudulent online purchases originated on Facebook or Instagram.

Online apps fraud

This is much like the wire transfer fraud for online purchases, but is different in that it happens through a mobile app. And there are all kinds of them: from those pretending to be genuine apps, to gaming apps, to those that promise features that are hardly possible (such as getting the password of your neighbour's wifi). In the end, they just want your data or your money, without giving you anything in return.

Identity theft fraud

Also known as identity theft, it occurs when they obtain your personal information in order to commit fraud or extract your money. It's a scam that can be the product of an oversight like the examples we've already mentioned, or catch you unaware of a massive data breach by a company you're affiliated with or an online service you use.  

Tips to avoid a fraudulent wire transfer

Follow these tips if you want to avoid becoming a victim of an online banking scam.

Do not make purchases by wire transfer

Any trusted online store will have a secure and certified infrastructure for bank card payments. Avoid sites that ask you to transfer money to purchase a product or service.

Make wire transfers to known accounts

If you need to transfer money to cover a debt or settle an account, make sure that the recipient is clearly identified. Avoid situations in which you share the bank account of a third party whose details you cannot verify or that the transfer was made.

Protect your personal and financial information

Besides not sharing your name, address and account numbers, avoid leaving them exposed. Do not store them in physical or digital locations that are easily accessible, or that you can forget (for example, in a file inside a USB or in a notebook). Protect all the possible ways in which you can be scammed. 

Avoid unknown or suspicious online requests

It's common to receive messages on a social network or by email from people you don't know asking you to collaborate with them, or telling you that you have won a prize. Don't listen to them! 

Reacting after fraud, step by step

The worst happened: you fell into a cybercriminal's ploy. What to do in case of a wire transfer fraud? Follow the recommendations below.

Identifying fraud

Before you try to recover the scammed money, look for the possible source: was it an online purchase? Was money transferred to another account? Knowing the type of fraud will help you solve the problem.

Report fraud to the appropriate authorities

The next step is toreport the wire transfer fraudof which you have been a victim. Depending on the type of fraud, find out which authorities can solve your case, such as the banking and/or cyber police.

Suspending any wire transfer order

Cancel any automated payment, scheduled transfer or direct debit service. This will help you keep a close eye on your money and identify any suspicious activity. 

Preserving as much evidence as possible

If you're one of those people who say: "I have been scammed by wire transfer, nothing matters anymore" and proceed to discard any ticket or receipt, think again! Even if you already know who scammed you and how to report a bank account for fraud., you'll need all possible support: bank statements, emails, messages.

User and/or password change

If your house was robbed without the door being forced, the first thing you'd do would be to change all the locks. Do the same with your credentials! Maybe changing the user would mean opening new accounts, but changing your password is something you can do in minutes.

Fraudulent wire transfer: other frequently asked questions

How do I get my money back if I'm scammed? What do I do if I have the details of the fraudulent bank account? Find out the answers to these and other frequently asked questions about wire transfer frauds.

How do I get my money back if I'm scammed?

When you find out how you were swindled with wire transfers, as well as anger, the first thing you feel is a need to recover what was stolen as soon as possible. To recover the money scammed by wire transfer, contact the entity and file a report. In Spain, the Payment Services Law obliges banks to compensate for fraud when it’s proven that you didn’t consent to the fraudulent operation. To recover money scammed on the internet–for example, because of a purchase in a fake store or because your data was leaked –, the situation becomes complex. You'll most likely have to wait for the authorities to act and resolve your case.

Does the bank refund your money if you get scammed?

Does the bank refund your money if you are scammed? As we explained in the previous point, yes, it will, only if it’s proven that you did not authorise the fraudulent payment, or transfer.

How to void a fraudulent wire transfer?

When you identify the fraud, time is a factor. Once the wire transfer order has been issued, you have a limited amount of time to cancel it. To find out how to cancel a suspicious wire transfer, contact your bank immediately. If it has already been processed, the next step is to go to the authorities.

Should I report a wire transfer fraud?

Even if you have solved the problem directly with your bank, we recommend that you report the bank account fraud. All the data reported will help the authorities to prevent this type of crime and the users to be better informed.

How do I know who committed the fraud?

Although it is the dream of any victim of a wire transfer fraud, you'll hardly ever find the perpetrator. There are government authorities and financial institutions that collect very useful data related to these crimes but it doesn't point directly to the offender. If you suspect you may be the target of a fraud or want to document your suspicions, visit your local financial fraud reporting portal.

Make secure wire transfers with WorldRemit

At WorldRemit we use three adjectives to describe our services: fast, cheap and, above all, secure. Our company allows millions of users to transfer money online using a computer, smartphone or the app with total confidence. With 55 thousand positive reviews it’s clear we are the perfect choice to send money to your loved ones, wherever you are.

Are you going to send money but are afraid of becoming a victim of wire transfer fraud? CTA: With WorldRemit, move your funds securely and quickly.