Don’t touch that wire: Money transfer scams

2013-08-04T14:20:00Z Don’t touch that wire: Money transfer scamsBy Tom Miller, Iowa attorney general Mason City Globe Gazette
August 04, 2013 2:20 pm  • 

DES MOINES -- The stories are countless and convincing, but they all have something in common: a stranger or caller you think you know wants you to wire money through money transfer companies such as Western Union or MoneyGram.

These stories often end the same way: you lost the money you wired.

Wiring money can be like leaving an envelope of cash on a table. Once you send money and a stranger picks it up, you can’t get it back. Recipients can almost always pick up the cash at multiple locations in foreign countries, making it very difficult — if not impossible — to trace.

Never wire money to someone you don’t know or haven’t met in person-even if you think you know the person who called you with a convincing story-even if it sounds like a personal emergency. Never agree to wiringmoney after depositing a check.

Common wire transfer scams:

• Work-at-home scams: The ad said you can be your own boss as a “secret shopper” who evaluates a money transfer company’s customer service. Someone sends you a cashier’s check. You’re supposed to cash it, wire a lesser amount, and keep some for yourself for your time and efforts. Although the check appears to be legitimate, days later you find out it isn’t — and your bank holds you responsible for the lost funds.

• Lottery and sweepstakes scams: Someone contacts you by phone, through the mail, or via the Internet, and claims that you’ve won a lottery or contest. You’re supposed to deposit a check and pay a processing fee or taxes through a wire transfer. Again, the check may appear legitimate — but you’ll soon find out it isn’t and you’re on the hook with your bank for the lost money.

• Grandparent scams: A frantic caller — who tries to convince you they’re a relative, government official, or even a defense lawyer — says there’s been an accident, incident or misunderstanding that landed your loved one in jail, the hospital or some other sort of jam. They tell you they need you to wire money immediately. No matter how bad it sounds, take time to verify thestory. Ask personal questions that only your loved one would know. Try to contact other family members, a close friend, or even law enforcement to help you gather the facts.

• Overpayment scams: Someone responds to an ad you placed, writes a check for more than you asked for, and asks for you to wire the difference (or they may say they have reconsidered and want you to deposit their check and wire a refund). The check will bounce and you will be out the money.

•Rental scams: You respond to an ad that advertises a place to rent for a very low price. The “landlord” claims they are out of the country on business or missionary work. You wire them the first and last month’s rent. They’re gone, your money is gone, and so, too, is the place you wanted to rent (which wasn’t theirs to rent to begin with). You should only deal with local landlords, be suspicious of below-market rental rates, and don’t wire money.

If you wired money and fear or know you’ve been scammed, contact the wire transfer company immediately to report it. You can report suspected fraud to Western Union’s fraud hotline at 800-448-1492, or MoneyGram at 800-MONEYGRAM ( 800-666-3947).

Unfortunately, it may be too late to stop or reverse the money transfer, but make every effort. You should also file a police report, and file a complaint with the Federal Trade Commission (FTC) at

You can also file a complaint with the Attorney’s Consumer Protection Division, Hoover Building, Des Moines, IA 50319, 515-281-5926 or 888-777-4590;

Copyright 2015 Mason City Globe Gazette. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

(3) Comments

  1. JB Johnson of Britt
    Report Abuse
    JB Johnson of Britt - August 05, 2013 3:45 pm
    The worst scam goes like this
    Hi, this is -Insert name here and I'm with the Dem or Rep {circle one} party and we need your help to defeat {the one you didn't circle} party. Can I put you down for { $5-10 -25- 100 }. For $1000 you can meet Congressman {insert name here}. For 10,000 Governor {insert name here}, 50,000 will get you a lunch with Senator insert name here and $100,000 will get you a photo with President {insert name here}
  2. iowafarmgirl
    Report Abuse
    iowafarmgirl - August 04, 2013 4:00 pm
    Its hard to believe that people are so gullible that they still listen to callers when they know better. this cr---aopwas going on back in the fifties!
  3. rivercityfan
    Report Abuse
    rivercityfan - August 04, 2013 2:46 pm
    Another scam is the "this is the Iowa Internal Revenue" phone call. A scammer tried that on me. I called the IIR and they informed me that they never make calls and only contact people via a letter. I knew it was a scam but called IIR just to be sure & find out their method of contacting people.
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