How to Avoid Wire Transfer Scams with Credit Unions
Posted: November 17, 2022 in Cybersecurity
A wire transfer is an electronic transfer of money from one account to another. It is one of the most convenient ways to send money between institutions or people from different countries.
Although it is considered a secure way to transfer money, wire transfers have become the primary target for scammers because the transactions are irreversible and immediate, and challenging to identify the specific person who pockets the money.
The best way to avoid this phishing scam is to recognize the signs of the scam. As your trusted financial partner, ProFed Credit Union is committed to ensuring you have the proper education and safeguards in place, including protecting your private information to avoid cyber phishing and scams.
Common Wire Transfer Scams and How You Can Avoid Them
Online Investment and Shopping Scams
Online investment and shopping scams are widespread and very convincing. Scammers create fake online investments and stores and take the opportunity to advertise the products on social media platforms.
The products often come with a warranty and are highly discounted to intrigue people to act quickly to grab the opportunity while it lasts. But the famous cliché reminds us that if the deal is too good to be true, you should think twice! Once you purchase, they usually play the part for a few more days by trying to convince you to add more products to your cart before going mute.
To avoid this scam, you should be very vigilant of the private information you share online with stores and be wary of unfamiliar websites. It’s important to only shop online with reputable retailers or thoroughly investigate the seller before making a purchase.
Real Estate Scams
Real estate wire transfer scams target people planning to refinance or buy homes. Scammers hack legitimate email accounts to impersonate realtors, attorneys, escrow officers, or lenders. Once they get access, they send you fraudulent wiring details and instructions. Before falling into these effective traps, please confirm wiring instructions with your mortgage company by calling a number you can trust.
Family Emergencies
Scammers search through your social media profiles or use other means to identify the names of your closest friends and family members or to use your personal information. They will then contact you or any of your close family members and explain a severe emergency that requires immediate financial support.
For example, they can convince you that an extended family member has been admitted to a hospital and requires immediate treatment. They pull at the heartstrings, telling you the immediate family cannot pay due to urgency or your relative is stranded in a particular location and needs money to get home. Before subscribing to these lies, take your time to confirm the situation with the family because scammers do enough research before contacting you to ensure the emergency seems believable.
Romance Scam
Most romance scams start on social media, where people from different locations often meet, know each other, and exchange messages. As you become more familiar, feelings develop, and the interest to meet in person comes up. At this stage, these scammers will claim to be hurting financially and request money for travel expenses and other bills while professing their love and desire to interact with you more.
While meeting and making new friends through social media platforms is not necessarily a bad idea, you must be mindful of the personal information you share and random unnecessary money you wire to internet friends in the name of love.
How Can ProFed Credit Union Help?
To learn more about recent scams and other ways ProFed strives to make the security of our members and the community a top priority, visit our security page. If you believe you’ve fallen victim to a scam, please report it by contacting our team today.
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