Has a stranger ever sent you an email asking for money or called to inform you about a monetary prize? That must have been a scammer. Millions of people have lost millions of money through money transfer scams. Surprisingly, they got scammed differently.
Scammers use different tricks and techniques to get people to send them money. That’s why you need to transfer your money through a reputable company that offers reliable currency exchange in Quebec, such as Knightsbridge FX.
In this guide, we’ll look at the different types of wire transfer scams that defrauders use. You will also learn a few tips and ideas to help you spot a scam and avoid them.
Tips and Ideas on How to Spot a Scam
All money transfer scams have one thing in common; someone you’ve never talked to or met with asking you to send them money. Or, they will ask you to provide your banking information so that they can wire some money into your account.
Here are the other red flags that could signal you a wire transfer scam.
- Deals that seem too good to be true, like being told you’ve won a world trip
- Strangers contacting you unexpectedly via social media or email
- Strangers asking you to transfer some money quickly in exchange of favour
- Someone asking you to give them personal information like passwords
- Being asked to make a payment in an unusual way
- Someone asking you to click a link in a text message to verify your account
Different Types of Wire Transfer Scams
Here are some of the popular types of money transfer scams you’ll find online.
1. Online Dating Scams
Many scammers have ripped off other people’s money through online dating platforms. They will first express strong emotions to you for a relatively short duration and suggest that you continue chatting on a more private platform, like an email or text message.
After a series of chats, the person may ask for money or gifts, and sometimes even your banking credentials. When asking for money, such scammers will pretend to have an emergency that they have to address urgently. So, how do you avoid such scams?
Never send money to a stranger you’ve never met in person. If you meet someone online who claims to have strong feelings for you then ask for cash, consider that as a scam. Don’t even share any personal information like your bank account.
2. Email Scams
Another popular wire transfer scam is the email scams. Someone might send you an email providing a lump sum of cash in return for helping them move some funds to another bank account. Such emails are called “419 emails.”
Sometimes you may switch on your computer and bump into an email asking you to update your banking account details or verify your account number. Beware of phishing emails as most of them get designed to trick you into disclosing your sensitive details.
Remember that a reputable financial institution will never send you an email asking for your credentials. So, don’t open attachments or click the links in unsolicited emails. You should also avoid emails that ask you to share personal financial information.
3. Impersonation Scams on Facebook
As you work hard to protect your bank and email accounts, you should also think of your social media accounts, including Facebook. A scammer may hack your account and pretend to be you. They will then use your information to defraud other people.
To avoid impersonation scams, stop accepting friend requests from people you do not know. Also, don’t share your Facebook password with strangers. The best strategy to protect yourself from such scammers is by installing robust cybersecurity software.
Here are the other tips to help you avoid Facebook Impersonation.
- Keep your apps and browsers updated
- Use two-factor authentication when logging in to your Facebook account
- Don’t log in to your Facebook account over a free and public WiFi
4. Online Shopping Scams
It is no doubt that almost everyone is now shopping online today, exposing many online shoppers to more risks. As you shop for goods and services on the internet, beware of offers which are too good to be true. You might end up buying counterfeit products.
To ensure that you are getting legit products or services, ensure that the shopping site is secure. Check if its URL has the ‘https’ sign and a tiny lock icon on the link address bar. You can also check if there are positive reviews of past shoppers.
Another reliable way to avoid online shopping scams is by using secure and traceable transactions as you pay for goods and services online. Also, don’t subscribe to services that provide free trials before researching the company.
5. Lottery and Sweepstakes Scams
If you receive an email informing you that you just won a lottery or scored a prize, you shouldn’t rush to share your sensitive information. You need to verify if it’s true before you proceed. The scammers will entice you with a lot of money to get your attention.
Most lottery scams will require you to pay cover taxes or fees to process your winnings. Many people won’t hesitate to pay $1,000 to get $100,000 awaiting them. To stay on the safer side, never pay upfront fees to get a prize or lottery winnings.
If you are curious about the winnings, you can research the company or organization.
No bank will ever call or text you to have your online banking password or PIN. A reputable financial institution will never text you to update your account details through a link on a text message. You should be very careful to avoid such red flags. Never send money or share your bank account details with a stranger.
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