Keep your money safe from money transfer scams

Fraud costs Brits many billions of pounds each year – and money transfer scams are the biggest culprit.

Millions of people are affected by money transfer scams each year. Learn what to look out for so you can keep your money safe.

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
Accidental payment scamSomeone “accidentally” sending you money on Paypal, Apple Pay and similar appsDo not send the money back. Ask the sender to cancel the transaction
Online purchasesAsking for money upfrontDo not pay up front. Ask to meet or arrange escrow
Lottery and sweepsMust pay a fee to receive your prizeIgnore it; it’s not a real prize
“Get out of jail”A person claiming to be a loved one asks you to send bail moneyNever send a money transfer until you can verify you know the recipient
“Guaranteed” loansRequest to pay for your application or taxes before you receive the loanRip it up. Do not send the money
PhishingAsking for personal details over email (bank accounts, passwords, passport number)Do not reply or click any link; forward the email to report@phishing.gov.uk
Fake chequesReceiving a cheque payment with a request to transfer the difference back to the senderTake it to your bank to verify if it’s real or fake
Mystery shopperYou’re sent a cheque along with your welcome letter and told to send a bank transfer backIgnore this offer and do not cash the cheque
CharityDonation requests from a fake charity posing as a real oneNever send 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 traveller”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 send moneyNever send money to someone you have not met in person

  • “Accidental” money transfer

You receive a transfer on PayPal, Apple Pay, Google Pay or a similar service from someone you don’t know. The amount of this transfer may vary, but will probably be a few hundred pounds. 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 pounds, or even 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 flat but are requested to transfer the first month’s rent up front. Or a timeshare, but there are taxes you need to take care of with a bank transfer first. Maybe your search for a car has paid off with an unbelievable deal, but there are application fees you need to cover. 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 got 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 bank transfer or cheque, find another retailer. Or ask to meet in person.

  • Lottery and sweepstakes scams

What luck! You’ve received a letter saying you’ve won 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. The fee is such a small amount, only about £1,000. Surely that’s worth receiving what you’re due.

  • What to do

You should never have to pay up front to receive a prize or lottery winnings. That alone should raise red flags. But if you’re curious, research the organisation 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 most likely is.

  • “Get out of jail” scams

An email or phone call may come in from someone claiming to be a loved one, or from someone claiming to be a lawyer or police officer on behalf of a loved one. The person requests money be transferred immediately in order to cover the bail payment.

  • What to do

Never send money without verifying the identity of the recipient. If you’re concerned you may be leaving someone in the wind, ask for the details of where they’re supposedly being held, then try to contact the loved one through friends, family members and contact information you had prior to the call.

  • “Guaranteed” loan scams

You get a letter saying you’re guaranteed approval for a loan or credit card. There’s only one last task before you can get it: send 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 details. Or it could be from an online shop 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 just forward it to the National Cyber Security Centre’s dedicated email address, report@phishing.gov.uk.

  • Fake cheque scams

Just 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 got a reply to your online auction with a cheque that’s for more than your item, with a simple request for you to transfer back the difference. The cheque is most likely to be fake, leaving you on the hook for both the money you send and a bounced cheque fee from your bank.

  • What to do

If you receive a cheque, 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 cheque – 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 cheque for the difference back. Better yet, send a bank transfer to make it you refund the company more quickly.

  • What to do

You’ve likely recognised this for what it is: just another variation of the fake cheque scam. Do not cash the cheque. 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 transfer to cover the cost of aid.

  • What to do

Research the charity online through the government’s Charity Register. Because some scammers use names that closely resemble well-known, reputable organisations, Google the exact name shown in your email or letter. And never send money to anybody claiming to be a charity. It’s best to pay by cheque or credit card.

  • Nigerian dignitary – or 419 – scams
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.

  • 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 send some money.

  • What to do

By now, you know the answer: don’t send 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.

  • “Stranded traveller” scams

This one involves an email from friends, often ones travelling abroad, who’ve found themselves in trouble and need money to be sent immediately to return home. The amount is nearly always £1,000 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 send money without being certain you know the recipient.

How to safely make a same-day transfer to a loved one

How to keep safe from money transfer scams

Avoid becoming a victim of a scammer by following a few basic rules:

  • Never send money to strangers. Under any circumstances.
  • Pay by credit card. That way, you’ll have some recourse if things go awry.
  • Be wary of unsolicited emails. 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

Table: sorted by promoted deals first
Our table below lets you compare the services you can use to send money abroad. Choose if you want to send under or over £10,000, and you’ll be shown a list of services that can help you.
Name Product Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer) Learn More
Wise (TransferWise) for large transfers
Within an hour
From £3.75

View details
Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.
TorFX
24 hours
£0

View details
TorFX sends money overseas in 30+ currencies, with competitive rates for transfer amounts over $2,000.
Central FX
24 hours
£0

View details
CentralFX's dedicated team will guide you or your business from first call to final payment.
Currencies Direct
Within an hour
£0

View details
CurrenciesDirect makes transferring money abroad simple with bank-beating exchange rates.
CurrencyTransfer
24 hours
£0

View details
CurrencyTransfer lets you shop around for the best exchange rate on its online marketplace.
XE Money Transfers
24 hours
£2
SPECIAL OFFER ✓ £25 Amazon voucher when you refer a friend

View details
XE has fast transfers with low fees and a range of foreign currency tools.
Wise (TransferWise)
Within an hour
From £3.75

View details
Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.
Azimo
Within minutes
From £0.99
SPECIAL OFFER ✓ First two transfers free for new customers.

View details
Azimo sends money directly to a bank account or over 280,000 cash pick-up points. It also has fast transfers to 50+ countries.
CurrencyFair
24 hours
€3
SPECIAL OFFER ✓ Zero fees on your first 10 transfers

View details
CurrencyFair has bank-beating exchange rates and fast transfer times on 15+ popular currencies.
Remitly
Within minutes
From £1.49
SPECIAL OFFER ✓ Free transfers and better exchange rates for new customers

View details
Remitly has quick, affordable transfers around the world, with both express and economy options.
WorldRemit
Within an hour
From £1.99
SPECIAL OFFER ✓ Use promo code 3FREE to send your first 3 transfers with no fee. Conditions apply.

View details
WorldRemit sends money to 110+ countries for bank-to-bank deposits, cash pick-ups or mobile top-ups.
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Compare up to 4 providers

Send money abroad with WorldFirst

WorldFirst sends 60+ currencies at competitive rates with no fees. If you find a better eligible quote, WorldFirst will beat it.

  • FX rates up to 85% cheaper than the banks
  • FCA authorised, fast, secure transfers
  • Manage international payments online or by phone
Promoted

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 the police. File a police report for the amount you’ve been defrauded.
  • File a complaint with the FCA. You can contact them online.

Many online seller websites like eBay have their own protocol for reporting and dealing with scammers. If you’ve sent money, you can also alert your money transfer company of your situation so it 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. Money 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 recognise and put a stop to them.

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2 Responses

    Default Gravatar
    jacksterAugust 4, 2018

    i am buying a car of a private buyer and i am transfering the money how do i know it is definatly going into there account ?

      Avatarfinder Customer Care
      JoshuaAugust 9, 2018Staff

      Hi jackster,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      You may ask for valid government-issued ID from the private buyer. Once you have that, check if the bank account that they provided reflects their name. That way you can be sure that it is his account. You may also want to check with the bank if a particular account exists.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

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