Money Transfer Scams: How To Protect Yourself from Being Scammed

People send hundreds of billions of pounds in remittances every year. Unfortunately, this large volume attracts scammers who try to trick people through various money transfer scams. At Remitly, we want to help you understand how these scams work and recognise the warning signs of potential fraud so you can keep your money safe.

Common Money Transfer Scams to Be Aware of

As people become better at recognising fraudulent activities such as credit card theft and wire transfer fraud, scammers are also improving their tactics. Since tracing many of these scams can be complicated, your best protection is learning to spot potential fraud when you encounter it. These are some of the most common scams we’ve encountered at Remitly as we work tirelessly to protect our customers’ information.

Please note: if you send money to a scammer, we might not be able to help, and you could lose your funds.

Family Emergency Scams

In this type of scam, the victim is led to believe they’re sending money to help a loved one or friend in an emergency. Scammers exploit the victim’s natural concern for someone they care about. This might involve a car accident, being stranded at an airport, or avoiding arrest. The scammer may place an urgent phone call, posing as a relative, friend, or loved one—or as a figure of authority such as a police officer or doctor.

To protect yourself:

• Verify the emergency by contacting the loved one or friend directly.
• Don’t rush the transaction. Take time to confirm the situation.
• Be suspicious of requests for secrecy or urgency.
• Be wary of unsolicited calls or messages from unknown individuals.

Extortion scams

Extortion scams involve scammers using threats or intimidation to obtain money. Sextortion is a type of extortion where perpetrators threaten to expose sexually compromising information unless demands—usually financial—are met. Victims tend to be younger adults or elderly people.

To protect yourself:

• Be cautious about who you connect with on social media and dating apps.
• Don’t engage in explicit video chats or exchange intimate images with strangers.
• Never send money to someone threatening to expose private content.
• Be wary of false claims from individuals posing as law enforcement officials.

Threats/blackmail scams

Threats and blackmail scams involve scammers coercing victims into paying money by making threats. These might include physical harm or revealing personal information. Scammers may relate personal details they’ve found online to intimidate victims. They might threaten physical harm or claim they know where you live or work.

To protect yourself:

• Never comply with a scammer’s demands.
• Contact the police immediately if you feel threatened.
• Be cautious about sharing personal information online.
• Ignore unsolicited calls or messages from unknown individuals.

Imposter Scams

Imposter scams involve scammers posing as authoritative figures, such as bank representatives or officials, to trick victims into transferring money. They may claim there’s an issue with your account or say you’re owed a refund but require you to provide personal or financial information.

To protect yourself:

• Be cautious when sharing personal or financial information.
• Verify the legitimacy of the business or representative.
• Never share sensitive information over the phone or via email.
• Be suspicious of unsolicited communication from unknown sources.

Investment Scams

Investment scams promise “too good to be true” opportunities or pressure victims to invest quickly. They often target victims through social media or unsolicited calls.

To protect yourself:

• Be cautious of opportunities that sound unrealistic or require immediate action.
• Research investments and confirm their legitimacy.
• Never invest money you can’t afford to lose.

Romance Scams

Romance scams involve scammers posing as romantic interests online. Once trust is established, they ask for money, often citing emergencies like medical bills or travel costs.

To protect yourself:

• Verify the person’s identity by asking for a video call or doing a reverse image search.
• Be wary of secrecy or urgency.
• Avoid sending money to people you’ve never met in person.

Tech Support Scams

These scams involve scammers pretending to represent tech companies, claiming your device needs urgent repairs. They aim to gain remote access to steal your information.

To protect yourself:

• Legitimate companies like Microsoft or Apple won’t contact you out of the blue.
• Never share personal or financial details with unsolicited callers or email senders.
• Independently verify any requests for tech support.

Immigration Scams

In immigration scams, fraudsters claim there’s an issue with your immigration documents and demand immediate payment to fix the problem, often threatening deportation.

To protect yourself:

• UK immigration officials will never ask for money over the phone. Payments should only be made through official government platforms.
• Don’t share personal or financial details with unverified individuals.
• Contact official immigration channels if you have concerns.

Prize Scams

These scams involve fake lotteries or sweepstakes. Scammers ask for your bank details to deposit winnings or request fees for processing.

To protect yourself:

• Research any unfamiliar competitions.
• Don’t send money until you verify the legitimacy of the claim.
• Avoid sharing your bank details with unknown parties.

Job Scams

Job scams involve fraudsters advertising fake roles and asking for payment upfront for training, equipment, or processing fees.

To protect yourself:

• Verify the company through official records like Companies House.
• Be wary of any job requiring payment upfront.
• Research employers thoroughly and avoid offers that sound too good to be true.

Marketplace Scams

These scams occur on online platforms like Facebook Marketplace, Gumtree, or eBay. Scammers may send fake cheques or ask for upfront payments for items they never deliver.

To protect yourself:

• Don’t accept cheques or money orders.
• Use the platform’s payment system and avoid off-site transactions.
• Check ratings and reviews of buyers or sellers.

Recognising Financial Scams

Here are some warning signs to help you spot scams:

• Pressure to act quickly.
• Strange email addresses or poorly written communications.
• Requests to send money via untraceable methods like wire transfers.

Protecting yourself

• Never share personal information with unverified callers or senders.
• Avoid sending money to unknown individuals.
• Use strong passwords and antivirus software.

If you’ve been scammed, contact your money transfer service provider immediately. Report any incidents to the police or Action Fraud in the UK.

By staying vigilant and following these tips, you can protect yourself and send money safely.

Frequently Asked Questions (FAQ) About Money Scams

What is a Money Transfer Scam?

A money transfer scam involves fraudsters tricking people into sending them money by using deceitful tactics. These scams often exploit emotions, trust, or urgency to manipulate victims.

How Can I Tell if I’m Being Scammed?

Look out for warning signs such as:

• Requests for secrecy or urgency.
• Pressure to send money quickly.
• Unfamiliar senders asking for personal or financial information.
• Offers that sound too good to be true.
• Poor spelling and grammar in messages or emails.

What Should I Do if I Suspect a Scam?

• Stop any communication with the potential scammer.
• Do not send any money or share personal details.
• Verify the situation through trusted sources (e.g., contacting a friend or family member directly).
• Report the scam to your money transfer provider and Action Fraud in the UK.

Can Remitly Refund Me if I’ve Sent Money to a Scammer?

Unfortunately, if you send money to a scammer, it may not be possible to recover the funds. This is why it’s crucial to recognise scams before acting.

How Can I Protect Myself from Money Transfer Scams?

• Never share your login details or personal information with strangers.
• Verify the legitimacy of any requests for money or personal details.
• Avoid acting on unsolicited emails, texts, or phone calls.
• Use strong passwords and enable two-factor authentication on your accounts.