Connecticut Better Business Bureau says Consumers Can Avoid Many Scams by Being Careful with Money Transfers
More than a Half Dozen Scams Rely on Use of Wired Money


WALLINGFORD, CT, July 10, 2010 /24-7PressRelease/ -- Wire transfers can be extremely helpful when you want to send money to someone you know and trust, however they are also a prime tool for scammers trying to cheat you out of your money.

The Federal Trade Commission (FTC) says sending money through Western Union and MoneyGram is "totally inappropriate" when dealing with a stranger.

Neither of those companies is responsible for the misuse of money transfers. Connecticut Better Business Bureau President, Paulette Scarpetti, says consumers must understand that they are not protected if they wire money to a dishonest third party.

"Consumers should steer clear of anyone who asks for a money transfer to pay for any goods or services. Reputable businesses accept credit cards, debit cards and checks as the main methods of payment. These offer a level of recourse for consumers, and make it easier to track down the recipient in the event there is a problem with the transaction."

Consumers also should be wary of appeals to send money in response to a dramatic telephone call or e-mail, supposedly from a friend or relative, asking for wired money to help pay for medical expenses, vehicle repair, transportation expenses or bail because of an "emergency."

There are many variations, but the common thread involves depositing a check and wiring back a portion of the money to the perpetrator.

Some of the best known wire transfer-related frauds involve counterfeit check scams. The fake checks are often convincing enough to fool a bank teller.

Although account holders can unwittingly deposit a fake check, the bank will eventually determine the check is worthless, sometimes long after the money was sent by wire transfer. The depositor is responsible for paying back the bank, as well as any fees incurred as a result of the bounced check. Losses also include whatever amount was wired to the scammer.

The FTC has compiled a list of counterfeit check scams and other fraud that rely upon money transfers:

Lotteries and Sweepstakes: A letter or e-mail arrives informing you that you have won a foreign lottery or sweepstakes or are entitled to a substantial sum from an inheritance. To claim the prize, simply deposit a cashier's check and wire money to someone you don't know to pay for taxes and fees. Although the cashier's check looks authentic, the bank eventually will determine the check is a fake.

Overpayment Scams: Someone responds to your classified ad or online auction item and offers to pay for it with a cashier's check, personal or corporate check. The "buyer" comes up an excuse for sending a check for more than the purchase price and asks you to wire back the difference. The buyer disappears with the money and the check inevitably bounces.

Mystery Shopper Scams: You are hired to be a mystery shopper to evaluate customer service at a wire transfer company. You are given a check for deposit, asked to withdraw the amount in cash and wire the money to someone outside of the country. You are then asked to evaluate your experience with the wire transfer company. Nobody contacts you for your evaluation the money you wired disappears with the scammer.

Wire transfer fraud also is used for online purchase scams, advance fee loans, obtaining credit and even securing employment. The outcome is always the same: the check is phony and you are on the hook to cover the bad check and fees.

As a rule of thumb, never wire money to:
•a stranger located in the U.S. or anywhere else
•someone claiming to be a relative or social network friend in crisis - and who wants to keep secret their request for money
•someone who says a money transfer is the only acceptable form of payment, and
•anyone who asks you to deposit a check and send some of the money back

If you do get stung wiring money to a scam artist, call the money transfer company immediately to report the fraud and file a complaint. The complaint department of MoneyGram may be reached at (800) 666-3947 and Western Union at (800)-448-1492. You also are encouraged to file a report with the FTC at (877) 382-4357 and Better Business Bureau online at www.bbb.org or by telephone at (203) 269-2700, to help prevent other consumers from falling prey to the same fraud.

You may find more information on identifying and avoiding scams at http://ct.bbb.org/consumer-tips-scams/.

Further Related Resources:


Press Release Contact Information:

Howard Schwartz
Better Business Bureau CT
Communications Coordinator
94 South Turnpike Rod
Wallingford, Connecticut
USA 06492
Voice: 206-269-2700 ext 103
Website: Visit Our Website