For as long as people have used money, there have been criminals who have tried to scam honest people out of it. Unfortunately, In our digital age, scammers are evermore prevalent, and creative in looking for ways to steal your hard-earned money. WIth the ease in which money can now be sent around the world, you must be extra vigilant when sending money abroad. Learn how to protect yourself and your loved ones—keep reading to find out how to keep your money safe.
Understanding Money Transfer Scams
Money transfer scams operate through deceit, where innocent people are swindled out of their money. These types of scams often play on human emotions like excitement, fear, or a desire to help. You may have heard that a new wave of monetary scams has been on the rise. Scammers are always coming up with fresh ways to try to deprive you of your money.
Read on to learn about recent scams that criminals have been using to target honest, hard working people. If you can identify certain red flags you can help keep yourself safe.
Different Types of Scams
What is a scam? A scam is any type of dishonest scheme intended to swindle someone out of money or property. In the Internet age, all kinds of scams proliferate. Here are some of the most common, and the signs you should watch out for:
Relationship / Romance Scams
These scams occur when a fraudster poses as a potential love interest on the Internet in order to swindle money from their victims. These scammers often pretend to be U.S. soldiers stationed abroad, and ask their victim to send them funds to support false needs. If you start an Internet-based relationship with someone, make sure to do some research about the area they say they are, what they do and what their needs are. And watch out for warning signs, which include: your love interest can only communicate via email, not phone or webcam; they profess love to you immediately; they ask for sensitive or private information (social security numbers, bank account information, etc.)
Mystery Shopper Scams
This is when you are solicited by an unknown party to “mystery shop,” in order for that party to assess the adequacy of another business. Generally, these scams involve this party sending you a check or money order that needs to be deposited into your bank account. However, these checks/money orders are fraudulent, and once you deposit one the fraudster has access to your bank account information. If someone you don’t know is offering to send you a check or money order to be deposited to your account, stop communicating immediately.
Sweepstakes Scams
If someone calls, texts, or emails you out of the blue to say that you have one a sum of money or a large prize from a sweepstakes you don’t remember entering, it is too good to be true. This is a common scam, and upon your reply, the scammer will likely tell you that you need to pay taxes, fees, or make some other payment in order to claim your prize (a prize that does not really exist). Never reply to unsolicited messages claiming you have won a prize, and if the scammer is posing as a large, well-known company, you may want to report the message to the company as well.
Relative Emergency Scams
These scams occur when a fraudster contacts you posing a family relative, and claims to be involved in an emergency that requires a quick, large sum of money to be transferred (examples include—but aren’t limited to—being involved in a car accident, needing money for bail or to avoid jail time, being stranded in a foreign country, etc.). These scams often target the elderly and the scammer will frequently try to pose as a grandchild, which is why they are sometimes called “grandchild scams.” The scammer may get in touch via phone, email, or through social media messaging apps, and will often ask the victim to maintain secrecy (along the lines of “please don’t tell my parents!”). Should you ever be contacted in this manner, one of the most straightforward ways to determine if the person is truly a relative is to ask them for information that would only be common knowledge among your family members. You can also ask other, trusted family members to confirm the truthfulness of a story you are given. If no one close to you knows anything about the information contained in these messages, it is likely a scam.
Rental Scams
When looking for a rental property, it’s wise to look for several red flags that can alert you to phony or nonexistent property listings. A landlord should never require you to wire cash for a deposit, security, first month’s rent, or any other reason. You should also never hand over money until you have a signed contract in hand; anyone who requires money first is likely trying to defraud you. Don’t succumb to pressure to rent a property you haven’t been able to see in person (or have someone you trust view for you), or one that the landlord refuses to show you beforehand. In short, if someone tries to gain money for a rental property sight unseen and without a signed contract, walk away as it is likely a scam.
Charity scams
Most charities are working towards the greater good, but there are plenty of imposters out there who are looking to gain money from kindhearted people who are looking to donate money to a worthy cause. Always do your research on a charity before donating to them. Online verification sources provide complete information and financials on thousands of charities across the country, so you know how your money is put to work within the organization. Never give money to a charity that reaches out to you, and asks you to send money urgently. Fraudulent charities will often also use emotional tactics to try and coerce you into giving them money. Be wary of dramatic language that is not also backed up by facts about how your money will be used.
Tech Support / Computer “Fix” Scams
These types of scams occur when a scammer posing as a computer technician contacts you to inform you of a virus, security problem, or other issue with your computer. They may either ask for payment before “fixing” your issue and/or gain remote access to your computer, and whatever sensitive information you may store on it. This correspondence may come via telephone, email, or even pop up messages on your web browser. If you are ever contacted in any of these formats and asked to call a telephone number to resolve a computer issue, do not reply, or call the number. Legitimate companies will never reach out to you in this manner. If you suspect a security breach of your computer, update your security software and change all of your passwords immediately. Call your software provider’s customer service line directly, or visit their retailers, who can provide advice on taking further security measures if necessary.
Gift Card and Check Deposit Scams
Beware of anyone that asks you to pay for goods or services with a gift card. Sanctioned and recognized businesses will never ask you to do this. Likewise, a legitimate company will never ask you to deposit a check they send you into your own account. Scammers may try this tactic in an effort to broach your bank account information. These checks are typically fake, and can compromise your bank account.
Recognizing the Signs of a Money Transfer Scam
In the context of money transfer scams, the scammer may try to convince you that a transfer has happened (when it hasn't) or trick you into initiating a transfer that ends up in their pockets.
Here's how it works in different scenarios:
Fake notifications: Scammers might send you emails or texts claiming a transfer has been made into your account. These are often phishing attempts to get you to click on malicious links or reveal personal information.
Fake overpayments: Scammers might pretend to accidentally overpay you for something you're selling online or for a service you're providing. They'll then pressure you to send back the "excess" amount through a money transfer, but the initial payment itself might be fake.
Fake requests: Scammers might impersonate someone you know (like a family member) or a trusted entity (like a bank) and ask you to send them money urgently through a transfer service. The transfer itself wouldn't be fake (the money would leave your account), but the recipient and the reason for the transfer would be.
Remember, legitimate institutions won't ask for sensitive information like account details or passwords via unreliable channels like email, text, or phone calls. If you're unsure about a transfer, it's always best to contact the sender directly using a verified method (like a phone number you know is theirs).
Sharemoney Works Hard to Keep You Safe
We know scammers are out there, constantly trying to find new ways to defraud hardworking and/or vulnerable people of their money. Sharemoney follows strict protocols in how we communicate and conduct business with you, in order to keep you safe. Please remember the following when transacting with Sharemoney:
Only communicate with our customer service team. Our sole customer service email address is customerservice@sharemoney.com, and if we require additional information from you in order to complete a transaction, our communication will come from this address only. We will never contact you using another address. If you receive a communication claiming to be from Sharemoney from a different email address, it is a scam. Please do not respond to the message and contact us to report any suspicious email.
We will never ask for your login information. If you are contacted by someone claiming to be from Sharemoney, and you are asked for your account login information, this is a scam. Please do not share the information and contact us directly to report suspicious behavior.
Never send money on behalf of someone you do not know well. Although it may be permissible to conduct transactions through a third party with the proper approval, senders should not accept money from a person they don’t know and trust, to then send abroad to an unknown beneficiary.
At Sharemoney, your security and peace of mind is our top priority. By staying vigilant, and by being aware of the ways fraudsters operate, you can ensure that your money will remain safe, and in the hands of only those most important to you—your loved ones.