Have you ever received a text message about paying for a nonexistent cable bill? What about an email about medical bills that don’t belong to you? You’re not alone.
Across the board, wire fraud scams like these are on the rise. In fact, bank transfers and payments accounted for the highest aggregate of fraud losses for consumers in 2024, totaling $2.09 billion.
Learning how to spot wire fraud is the first step in helping protect yourself and your finances from cybercriminals.
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How wire fraud works
Fraudsters reproduce sites, profiles and listings to give the appearance of credibility and authenticity. Their fake postings, websites, pictures, sad stories, get-rich-quick promises or other social engineering schemes get their targets to send cash (via money or wire transfer) in exchange for promised goods and/or services that don’t actually exist.
How to spot wire fraud
Be on the lookout for these warning signs if you receive a suspicious text, email or voicemail.
1. Lack of organization
When you’re buying an expensive item, most sellers are motivated to make a sale. If it seems like things are taking longer than they should, or the seller is disorganized, it can hint at a larger problem. Often, the fraudsters have limited access to much-needed transactional info and can only provide excuses.
2. Sense of urgency
Cybercriminals push for everything to be done immediately so that you’re less likely to take a critical eye to the missing pieces or are more likely to make a mistake.
3. No identity verification
Scammers often blame lack of proximity and availability on why they can’t verify their identity, but be sure to insist on asking them to do so.
If you receive an email or text requesting a wire transfer, call the person or company involved using a verified, legitimate phone number.
Tips to help prevent wire fraud
Cybercriminals are utilizing timely and opportune scams to defraud unsuspecting targets more than ever. But knowing what to look for — and when — can help keep you protected.
1. Verify requests and confirm recipient details
If you receive an email or text requesting a wire transfer, call the person or company involved using a verified, legitimate phone number.
Double check email addresses for misspellings or different domains, as scammers often use addresses that are very similar to legitimate ones.
Fraudulent invoices may have inconsistent formatting, low-quality logos or typos, so make sure to compare the payment information of a legitimate invoice or work order to ensure it’s valid.
2. Treat urgent requests with caution
Oftentimes, scammers will create a sense of urgency to get their victims to react without thinking. Red flags can come in the form of last-minute changes to contact information or where you're sending the money, as well as requests requiring your immediate attention.
3. Use trusted networks and security best practices
Only initiate a wire transfer from a secure, private network, and make sure the website address starts with “https”. for your online banking and financial accounts, use a multi-step process for new or updated wire instructions, and enable multi-factor authentication.
4. Never share accounts or sensitive data
Limit sharing to essential details only, like your bank name, and keep your full account number, PINs and online login information private.
5. Watch for social engineering
Always question unsolicited requests for personal or financial information. You should also be mindful of the information you share on social media.
What should you do if you’ve been targeted by wire fraud?
If you believe you’ve been a victim of wire fraud or any cybercrime, immediately report the incident to your financial institution and your local FBI office, as they may be able to recover your stolen money. You should also file a complaint with the FBI’s Internet Crime Complaint Center (IC3). They may be able to assist in further recovery efforts.
Stay vigilant against financial fraud
Remember: The best defense is a good offense. Always verify the information of any person or institution you’re working with during a wire transfer to help remain proactive with your financial and cyber security.
