Estimated read time: 4-5 minutes
If it seems like your email inbox is mostly full of scammers, you're probably right. And while it may be easy to spot some of the more obvious ploys out there — e.g. a foreign prince needs your help or the world's most attractive person suddenly finds you interesting — business is a boomin' when it comes to wire fraud.
According to a 2023 report by the Federal Bureau of Investigation, more than $12.3 billion was lost to cybercrime — a figure that has almost doubled in two years — and it's likely to exceed that in 2024.
Wire fraud is a quick and anonymous way for scammers to get your money. Once the money is gone, it's gone — even when sending funds with a credit card.
So, what can you do to ensure you're not a victim of wire fraud? Here are some from the Federal Trade Commission to protect yourself.
Tips for steering clear of money wiring scams
First, avoid wiring money through any company to individuals you have yet to meet face-to-face. If someone is trying to persuade you to do so, this is likely a scam — regardless of the explanation they give or the story they tell
Second, do not wire money to individuals claiming to represent government agencies or reputable companies. These requests are scams. Legitimate government agencies or companies will never require payment via wire transfer.
Third, refuse to wire money if you feel pressured to make an immediate payment or if someone insists that a wire transfer is the only acceptable form of payment, even if it appears — or sounds — to be coming from someone you know.
Andrew Adams of KSL TV did a story in 2023 about artificial intelligence voice cloning explaining how scammers are using it to their advantage. The scammers can clone the voice of someone you know and love, claiming to be in a dire situation. Some will say your loved one has been kidnapped and you need to pay the ransom. Others might say your family member has been arrested and needs a wire transfer for bail.
If you experience something like this, it's most likely a scam.
Fourth, avoid wiring money to individuals attempting to sell you something over the phone, as it is illegal for telemarketers to request payment via wire transfer.
Common wire fraud scams
If you have an email account, you're probably familiar with some of the more common scams. But just in case you need a refresher, the Federal Trade Commission has outlined some of the more convincing ones. Here are just a few.
Vacation rental and apartment advertising scams
This is where the price on a rental or apartment might seem too good to be true, you inquire, and the supposed landlord instructs you to wire money over for an application fee, security deposit or something else.
Fraudulent check schemes
Some scammers might take their scheme so far as to send a check to you, instruct you to deposit it, and then tell you to wire the funds back to them. It looks legitimate because the funds show up in your bank account, and the check looks legitimate, but it's not. It's a fake check. Once your bank discovers it was a fraudulent check, you're on the hook for repayment. This also underscores why working with a credit union like Goldenwest Credit Union is so important. They are well-trained to help you spot scams and avoid any costly mistakes.
Family emergency scams
Like the scam covered by KSL TV, these fraudsters could utilize a frantic call from someone claiming to be a family member or close friend in need of money to resolve a dire situation. Exercise caution when faced with such unexpected requests, and trust your gut.
Prize schemes
You might win the lottery someday, but it won't be with strings attached. Remember: any demand for upfront payment for supposed processing fees, shipping or other bogus requests when tied to a prize-winning is a clear indicator of a scam.
Romance scams
There's perhaps nothing more emotionally blinding than finding love, and scammers know it. These scams are especially rampant on dating websites. Scammers will create a fake profile, gain your trust and then ask you for money for some deeply personal and very important reason. It's fake, and you should ghost (and report) the profile immediately.
Utility scams
Should someone call or email you purporting to represent your gas, water or electric company, and threaten to terminate your services unless you immediately wire money through services, you know it's a scam. Hang up, delete the email and contact your utility company directly.
Staying safe out there
With so many creative and convincing scams out there for wire fraud, it's important to stay vigilant and work with institutions that can help you protect your money. Goldenwest Credit Union is one of those. They have decades of experience in the Utah and Idaho markets and are committed to doing all they can to keep your money safe.
Visit gwcu.org for more information on their products and services.
