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Keep your money safe from money transfer scams

Here are some of the top money frauds to watch out for in the Philippines.

Billions of dollars are transferred between friends, family and businesses around the world through international money transfers every day. Unfortunately, many people have been defrauded through online schemes designed to take as much of that money as they can.

The most common money transfer scams always include at least one of the following:

  • A request from someone you’ve never met.
  • Someone in a crisis that you can’t tell anyone else about.
  • A money transfer being the only form of payment accepted.
  • Paying money to get more money back.

Common money transfer scams to watch out for

ScamWhat to watch out forWhat to do
Online purchasesAsking for money upfrontDo not pay upfront, ask to meet or arrange cash on delivery payment
Lottery and sweepsMust pay a fee to receive your prizeIgnore it; it’s not a real prize
“Guaranteed” loansRequest to pay for your application before you receive the loanRip it up; do not send the money
PhishingAsking for personal details over email (bank accounts, passwords, IDs)Do not reply or click any link; forward the email to consumeraffairs@bsp.gov.ph
Bogus checksReceiving a check payment with a request to wire the difference back to the senderTake it to your bank to verify if its real or fake
Mystery shopperYou’re sent a check along with your welcome letter and told to send a money order backDon’t cash the money order; ignore this offer
CharityDonation requests from a fake charity posing as real oneNever wire money when donating to charity, regardless of its legitimacy
Nigerian dignitarySomeone contacts you to help recover a large sum of money, and need your bank account info to help pay feesNever provide financial information over email
“Stranded traveler”A loved one claims to be in trouble, and they are asking for you to send cashNever send a money transfer until you can verify you know the recipient
Online datingGetting to know someone online and after you feel a connection, they ask you to wire moneyNever send money to someone you have not met in person

  • “Accidental” money transfer

You receive a transfer on PayPal, GCash or a similar service from someone you don’t know. The amount of this transfer may vary, but will probably be a few hundred pesos. You’ll receive a message after the transfer claiming that it was sent on accident, and the sender will ask you to send the money back. You want to do the right thing so you refund them the “accidental” transfer amount, only to realise later you never received a transfer from them to begin with and now you’ve lost a few hundred pesos or more.

  • What to do

Do not refund them the amount. Chances are the original transfer they sent you was paid for with a stolen credit card and it will be cancelled on its own. Instead, ask the user who “accidentally” sent you money to cancel the transaction on their end, or request that they contact the platform directly for assistance.

  • Online purchase scams

You’ve found your dream apartment but are requested to transfer the first month’s rent upfront. Or a timeshare, but there are taxes you need to take care of with a money order first. Maybe your search for a car has paid off with an unbelievable deal, but there are application fees you need to cover with a wire transfer. While many online retailers are legitimate, scammers leverage the anonymity of the Internet to rip you off. That includes asking for money before you’ve even gotten the merchandise. Before you know it, they’re gone — along with your money.

  • What to do

Be wary of anybody online who tells you there’s upfront deposits or payments — especially if you haven’t yet met them and there’s no contract. And if anybody online says you can only pay with a wire transfer or money order, find another retailer. Or ask to meet in person.

  • Lottery and sweepstakes scams

What luck! You’ve received a letter that you’ve scored a prize. Or maybe you’re contacted about a lottery you’ve won. It’s a lot of money, and there’s only one catch: you first need to pay a fee or cover taxes to receive it. It’s such a small amount, about a few thousand pesos. Surely that’s worth receiving what you’re due.

  • What to do

You should never have to pay upfront to receive a prize or lottery winnings. That alone should raise red flags. But if you’re curious, research the organization or company from which you’ve received your letter to see what others have to say. If it sounds too good to be true, it probably is.

  • “Guaranteed” loan scams

You get a letter that you’re guaranteed approval for a loan or credit card. There’s only one last task before you can get it: wire money for the application or taxes. That’s easy enough, right?

  • What to do

You should never need to send money in order to receive an authentic credit card or loan. Instead of sending the money, research the company who sent you the letter. You’ll probably see warnings from others to rip it up.

  • Phishing scams

You open your computer to an email from your bank asking you to verify your account number. Or it could be from an e-retailer needing confirmation of your password. Sometimes it’s a link from your email provider itself asking you to click and double-check your details. It’s all so official, how could it not be legit?

  • What to do

Don’t be tricked into giving out any personal information. Keep in mind that you will never be emailed by a legitimate bank, retailer or other service provider to confirm your personal information, financial details or password. This is called “phishing”, and you should not reply or click any links in the email — instead simply forward it to the Bangko Sentral ng Pilipinas’s dedicated consumer affairs email address, consumeraffairs@bsp.gov.ph.

  • Bogus check scams

Because you’re the online seller doesn’t mean you’re safe from scammers. Unbelievably, they’ll find a way even when the tables are turned. You may have gotten a reply to your online auction with a check that’s for more than your item — with simple request for you to wire back the difference. The check is likely fake, leaving you on the hook for both the money you wire and a bounced check fee from your bank.

  • What to do

If you receive a cashier’s check, do not cash it. Take it to your bank or the authorities for verification.

  • Mystery shopper scams

You may be contacted about a fun new gig: becoming a mystery shopper for a local retail chain. Along with your welcome letter, you’re sent a money order. Only the amount is more than it should be. When you contact the number on your letter, you’re told to go ahead and cash it, and then simply send a money order for the overage. Better yet, send a wire transfer to make you refund the company more quickly.

  • What to do

You’ve likely recognized this for what it is: just another variation of the bogus check scam. Do not cash the money order. And lose the number for this bogus company, instead of losing your hard-earned cash.

  • Charity scams

Disasters bring out the best in people. But they can also unearth con artists who prey on the altruistic. Be cautious of letters requesting donations in cash or by wire transfer to cover the cost of aid.

  • What to do

Research the charity online with a site like Charity Navigator. Because some scammers use names that closely resemble well-known, reputable organizations, Google the exact name shown in your email or letter. And never wire money to anybody claiming to be a charity. It’s best to pay by check or credit card.

  • Nigerian dignitary scams

Though it’s the butt of many jokes, the “Nigerian prince” scam is among the top five largest revenue sources for Nigeria — it’s that successful. For this scam, you’re contacted by somebody requesting your help in recovering a great deal of money. They claim that if you help them by providing your banking account information or money to pay fees, you’ll be rewarded with a substantial portion of the money.

  • What to do

This is just another variation of the advance fee scam. Never provide your financial information or send money to anybody you don’t know.

  • “Stranded traveler” scams

This one involves an email from friends, often ones travelling abroad, who’ve found themselves in trouble and need money wired immediately to return home. The amount is nearly always ₱50,000 or more and may even appear to come from a friend’s actual email address. Except it’s not actually your friend who’s sending it. Instead, their account has been hijacked through a phishing scam.

  • What to do

Be wary of any email from a friend in trouble overseas. Attempt to make contact with them or confirm their whereabouts with your social network. As with other scams, never wire money without being certain you know the recipient.

How to safely make an emergency transfer to a loved one

  • Online dating scams

Another tough one — and therefore popular among scammers — involves a bond with somebody you’ve met online through a dating site. Often, that person wants to immediately leave the site for a more intimate DM or text chat. They may claim to be working overseas with plans to visit soon. Over the course of some time, you’re lead to believe there’s a strong connection. And then they ask for you to wire some money.

  • What to do

By now, you know the answer: don’t wire money to anybody you don’t know. You could ask to meet in person, even if it seems impossible — their refusal will be a clear sign that they may not be who they say they are. If you were emailed a photo, consider using a reverse photo search to see if you can confirm the name you’ve been given. You may discover many names attached to the photo. Again, a clear sign that you’re dealing with a scammer.

How to keep safe from scammers

Avoid becoming a victim of a wire transfer scam by following a few basic tenets:

  • Never wire money to strangers. Period.
  • Pay by credit card. That way, you’ll have some recourse if things go awry.
  • Be wary of unsolicited email. Your email, financial and other service providers will never email you to confirm personal info or passwords.
  • Go with your gut. Con artists deal in pressure and threats. When in doubt, slow down. A quick online search can often confirm your suspicions.

How to choose a reputable money transfer provider

Most reputable online providers will have up to date security measures in place to make sure your data and information is secure when sending an international money transfer. Many will have dedicated email addresses or customer service phone lines to receive tips on potential scams. When choosing a provider, don’t be afraid to ask tough questions and compare your options to find the safest one for you.

Name Product Minimum Transfer Transfer Time Transfer Fee
WorldRemit
WorldRemit
PHP 1
1 - 2 days
USD 3.99
Use promo code FREE to send your first transfer with no fee. T&Cs apply.
WorldRemit sends money to 110+ countries for bank-to-bank deposits, cash pick-ups or mobile top-ups.
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I may be the victim of a scam. What should I do?

If you suspect that you’re the victim of a money transfer scam:

  • Call your local police. File a police report at the nearest National Bureau of Investigation (NBI) office for the amount you’ve been defrauded.
  • File a complaint with the BSP. Call (02)708-7087 and (02)708-7701 loc 2584 or file a complaint online at consumeraffairs@bsp.gov.ph.
  • Contact the Department of Trade and Industry (DTI). For fraudulent online purchases, contact DTI’s E-Commerce Office at eco@dti.gov.ph or the DTI Call Center at (02) 751-3330.

Many online seller websites like eBay have their own protocol for reporting and dealing with scammers. If you’ve wired money, you can also alert your wire transfer company of your situation so they can be ready for any future complaints. While it’s tough to admit that you might have been the victim of somebody’s wrongdoing, try not to be too hard on yourself. Wire transfer scams are on the rise because these cons are constantly evolving. By reporting it and talking openly about your experience, you’re helping others to recognize and put a stop to them.

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