Sending money domestically or internationally via bank or wire transfer is safe to do. But only if you are 100% confident about who the recipient is. Most bank transfer fraud is done through mistaken identity – rather than a fault in the system. So you must trust that the recipient is credible before the transfer is undertaken. Because once the money is sent, it’s often very difficult – if not impossible – to get it back.
In most cases, wire transfers are done with people you know. Such as friends or family. But there are times where you might need to make bank transfers to a stranger or a company you’re dealing with for the first time. It’s these situations that are rife for fraud – so you need to be extremely careful.
Is it safe to do a bank transfer with a stranger?
If you’re thinking of sending money to a total stranger by bank wire transfer, proceed with the utmost caution.
Ask yourself:
● Have you met the person or spoken to them before?
● Do you know why they are asking you to make a payment?
● Is the person rushing you to make the transaction quickly?
● Are they asking you to send cash to an overseas account?
If you have a solid answer for these questions then you can start considering whether to proceed with the transaction.
Common wire transfer scams that strangers use
Most scams use compelling or dramatic tales. They almost always try to instil a major sense of urgency so you don’t think twice about it.
Here are some of the most common scams to look out for:
● Emotional Stories: Avoid getting drawn into sentimental tales. When individuals hear about other people’s miserable or depressing conditions, they become emotional. But unfortunately, there’s often no way to 100% verify these claims. Con artists are aware of this and can look to take advantage.
● Dodgy Online Purchases: Many people buy online via marketplaces and other second-hand shops. Scammers might ask for money via wire transfer as these are much harder to rectify when things go wrong.
● Fraud Phone Calls: Many con artists will give you a call while impersonating as a credible company. This often includes posing as a supposed agent of your UK banking institution. Be very wary of any phone calls you receive asking for money wire transfers.
● Trending Solutions: Fraudsters keep up to date with current affairs to see if they can exploit them. A good example is the 2022 energy crisis, with Solihull Council warning of insulation scams. Unfortunately, these scams are constantly evolving. So the general rule is that if something sounds too good to be true then it probably is.
Is it safe to do a bank transfer with a company?
You should exercise the same caution when companies ask you to conduct a payment via bank wire transfer. Just because they are an entity instead of an individual does not guarantee that they are any more credible. They could just as easily be a scam company that’s after your cash.
However, if you know the company and are aware of why they are asking you for a payment then that’s a good starting point.
If you agree to make the payment then you just need to make sure that their payment details are correct. For example, if you receive a call with payment instructions then you should be very careful. Con artists regularly call up pretending to be agents of major companies. So it’s best to hang up and call them yourself just to be sure.
Should I give my banking details to strangers or companies?
You should never give out your banking information to a stranger or a company without thinking twice.
Ask yourself:
● Who are they?
● Why do they (supposedly) want to make a payment to you?
Only ever consider making a payment once you have sufficient information about them and why they might need your details.
There will be a lot of issues if it turns out to be a fraudster. For starters, you would need to immediately freeze your account to safeguard your funds. You would then need to create a new account number and sort code, change online banking details, get new cards issued, and more. It would be a major hassle to deal with, let alone a huge risk.
Ask them to use an alternative payment method
A much better way to receive money from someone you don’t know is by using a different payment service. Many services are quick, easy to setup, and in most cases will protect your most sensitive details.
An excellent example is PayPal. All you need is a functioning email address to create an account which is free to do. There are then a variety of ways to receive money via PayPal – such as a dedicated payment link which you can send directly to the stranger. If they turn out to be a scammer, then none of your details will have been exposed.
When would a stranger or company need to do a bank transfer to me?
However, in some unique cases, a wire payment might be the only possible way to make a payment. This is more so with companies rather than individuals, as they might have specific rules or regulations in place that can’t be changed.
A good example is with online casinos that accept bank transfer. All UK online casinos must verify the identity of their players in Britain before processing withdrawals. And bank transfers are a great way to do this – as the banking details match the player’s account details for instant verification. So many gambling sites now require players to withdraw this way.
What to do if you are scammed
If you believe you have fallen victim to a financial scam, you should do the following:
● Inform your bank or financial institution immediately – and explain the situation completely from start to finish.
● Block your card or account temporarily while it is investigated
● Report your crime to a relevant authority – such as ActionFraud.
Article written by Laura Woodsmith.
