Historically wire fraud schemes relied on the telephone, with scammers limited by the number of calls they could place to try to hook their victims. Today, with the proliferation of the internet, fraudsters can reach many more people through social media with their fake stories of loss, love, and instant wealth.
The definition of wire fraud today is quite broad. According to the U.S. Department of Justice wire fraud statutes, these elements define wire fraud:
This means a scammer could contact you through email, text message, or phone to commit wire fraud.
The best way to prevent yourself from falling victim to wire fraud is to make yourself aware of the red flags and constantly be on alert for scams. Here are some indicators you may be dealing with a scammer:
Considering that the definition of wire fraud scams is relatively broad, many types of scams fall into this category. Most scams that involve the internet, email, phone calls, or text messages and the loss of money are wire fraud scams.
The most common type of wire fraud scam is phishing. In these scams, a scammer masquerading as a government official, tech support technician, or another person, contacts you by email, text message, or phone call.
They will commonly impersonate a government official or well-known brand and ask you for sensitive information, such as your bank account details and Social Security number (SSN). They will then use this information to steal your identity.
Money transfer scams have been around for years. Possibly the most common version of this is the Nigerian prince scam, where the scammer poses as a Nigerian prince. But since people know to be on the lookout for "Nigerian princes" offering them money by now, scammers have since masqueraded as different characters.
The gist of the scam goes like this. The scammer claims to have a large sum of money they cannot access without your financial help to "release" the money. If you transfer the money, the scammer will say you will get a percentage of the money for your help, but that never happens, and the scammer takes off with your money.
In a lottery or prize scam, you will receive an email claiming that you won the lottery, sweepstakes, or other contest. To claim your winnings, you will first have to pay a fee. Unfortunately, the contest isn't real, and the scammer will take your money and disappear.
In an investment scam, the scammer will claim they have an amazing investment opportunity that will double, triple, or quadruple your money. The investment could be stocks, bonds, real estate, cryptocurrency, or several other investment types. These scams are even common on Cash App, where scammers promise to "flip your money."
The scammer may give you fake information about a real investment to make it look better or create a fictional one on the spot. Regardless of if they use an actual example or a fake one, their main goal is to steal your money.
Catfishing is when someone sets up a fake profile to win your trust and ultimately gets you to send them money. These scams are often associated with online dating and target vulnerable people looking for companionship.
Once the scammer has won your trust, they start asking for money, often for small amounts initially, then gradually increase it over time.
Here are some tips to help you beat wire fraud and keep your identity, data, and money safe:
If you have fallen victim to wire fraud, you need to act quickly to prevent further loss of money or data. Depending on the type of wire fraud you have fallen for, all or some of these steps will help you recover from the damage and even possibly help the authorities catch the scammer.
One thing you will want to do is report the scam to the authorities. Ensure you have all the information regarding the fraud available when you contact them, so they have everything they need to catch the scammer. Here are some places you should report the scam:
You will also want to contact the shipping company involved if it was a package delivery scam. If you were contacted via a social media account, you should also report the fraud to the website/platform.
If you gave the scammer money or your bank/credit card information, you will also want to contact your financial institution. If you sent money to a scammer, sometimes you can get the charges reversed depending on the scam. Many credit and debit card providers offer protection against fraud and will cancel all fraudulent charges on your account.
Usually, it's as simple as monitoring your bank accounts and then disputing or reporting unknown transactions to your bank.
If the scammer had you download an application or you clicked on an attachment, you need to make sure that you disconnect the affected device from the internet as soon as possible. Once you have no internet connection, run anti-virus and anti-malware software and let them remove any harmful software. Also, check your browser for extensions you didn't install and uninstall them.
If you entered any credentials on a phishing site or any malware is found on your computer, you will want to change the passwords on your internet accounts using another device. Start with any credentials you used on the phishing site and update your most important passwords, like those for email accounts, government sites, and financial institutions.
If you entered any personal information like your Social Security number on a phishing site or gave it to the scammer, place a fraud alert on your credit report. You also have the option of freezing your credit completely for ultimate protection.
Scammers have turned their phishing attempts to members or credit unions by sending out fake emails hoping to get their hands on valuable personal data.
If you've received a locked debit card text message from Citibank, it's likely a scam. Don't click on the link and delete the text message.
If you receive a text message from Chase Bank, don't click on any links or call the phone number listed—it could be a scam designed to steal your information and money.
If you receive a text message from American Express, don't click on any links or call the phone number listed—it could be a scam designed to steal your information and money.
If you received a text message from Citizens Bank asking for personal information such as your password or login credentials, it may be from a scammer trying to steal your money.
Dangerous text message scams are targeting Wells Fargo customers. These text message alerts for Zelle transactions or purchases with retailers are scams.
Scammers are sending text messages claiming to be from Netflix and saying your subscription has been put on hold. Here's how to tell the texts are fake and what to do about it.
If you received a suspicious Capital One fraud text alert, it may be a scam. Learn how to spot the fake to protect your identity and funds.
Several versions of fake PayPal text messages are being sent to people worldwide. There are a few easy ways to tell which messages are scams and simple things you can do to protect yourself.
A Navy Federal scam text is going around looking to trick individuals into giving up their personal or account information. Here's what you need to know.
Keeping your bank account and money secure isn't as simple as keeping your PIN a secret. Hackers and scammers find numerous ways to gain access to your funds.
There were tell-tale red flags of a scam all the way through the Netflix documentary, which could have helped the victims identify him as a scammer. Learn from these markers to avoid being a victim.
Mortgage escrow scams can steal the entire value of your house during a transaction. Follow these steps to ensure that you verify your escrow agent before any transfers.
Online shopping is undeniably convenient, but lurking amidst the vast digital marketplace are fake online stores ready to pounce on unsuspecting shoppers.
Imagine waking up one morning, coffee in hand, only to find your hard-earned savings vanished into thin air. Shocking, isn't it? Welcome to the sinister world of stock investment scams.
Zelle scams have reached a serious volume. New reports suggest that banks are looking at new refund protections for customers in 2023.
The CDC is warning eye drops users of a rare bacterial infection from 2 brands of eye drops. The infection is resistant to antibiotics and has resulted in the loss of vision, loss of eyeballs and the death of 3 patients.
Hackers have gained access to 9.8 million customer records from Optus in Australia, exposing personal information such as driver licence, medicare and passport details.
Find out what the overturning of Roe vs. Wade means for abortion rights in your state.
The number of people searching for the term "COVID vaccine 5G" on Google has just hit an all-time high, but there's one way to be sure that there are no microchips.