SCAM AWARENESSWire transfer fraud
Wire transfer fraud happens when a scammer tricks you into sending money by bank wire or through a money transfer service. Wires move fast and work much like cash, so once the money is picked up or moved, it is very hard to get back. That is why scammers push so hard for this payment method.
How this scam works
Scammers use many stories to get a wire. They may pose as a title company sending closing instructions for a home purchase, a landlord asking for a deposit, a romantic partner with an emergency, or a government official demanding a fee. Some send a fake check, ask you to deposit it, and then wire part of the money back.
The common thread is pressure and secrecy. You are told the money must go out today, that wiring is the only option, or that you should not discuss it with your bank. The wire instructions often come by email or text, sometimes from a hacked or look-alike account. By the time the bank or family members notice, the money has usually been moved.
What it can look like
EXAMPLE · NOT A REAL MESSAGEHello, this is your closing coordinator. There has been a last-minute change to our escrow account. Please wire your down payment to the new account below today so your closing is not delayed. Reply to this email once the transfer is complete.
Warning signs
- Wire instructions change by email or text right before a payment is due.
- You are told a wire is the only way to pay.
- Someone you have never met in person asks you to wire money.
- You are asked to send back part of a check you just deposited.
- The sender pressures you to act today and keep it secret.
- A caller coaches you on what to tell the bank about the wire.
How to protect yourself
- Only wire money to people you know and have met in person.
- Confirm wire instructions by calling a known number, never one in the email.
- For home purchases, verify closing instructions in person or by phone with your title company.
- Do not deposit a check and send money back to the sender.
- Ask your bank staff for their opinion before sending a large or unusual wire.
If you already responded
- Call your bank or the money transfer company immediately, report the fraud, and ask them to try to stop or reverse the wire.
- Ask your bank to note the fraud on your account and watch for further activity.
- File a report with the FTC and, for online scams, with the FBI's IC3.
- Save emails, texts, receipts, and wire confirmation numbers.
- Ignore anyone who contacts you offering to recover the money for a fee.
Get step-by-step recovery help →
Where to report it
- FTC: What to know before you wire money ↗
- Report fraud to the FTC ↗
- File a complaint with the FBI's IC3 ↗
Common questions
Can a wire transfer be reversed if it was a scam?
Sometimes, but it is hard. Wires are designed to be fast and final. Your best chance is to contact your bank or the transfer company right away and ask them to try to stop or recall it. The longer you wait, the more likely the money has already been moved.
Is it safe to wire money to someone I met online?
No. The FTC advises only wiring money to people you have met in person. Scammers met online often build trust over weeks before asking for a wire. No matter how convincing the reason, if you have never met the person face to face, do not send money by wire.
How can homebuyers avoid wire fraud at closing?
Before closing, get your title company's or attorney's phone number from a trusted source and call to confirm wire instructions. Be very suspicious of any email saying instructions have changed. Never use contact information from that email. A quick call to a known number can prevent a costly mistake.