Wire Transfer Fraud

Wire transfer fraud, or simply wire fraud, is a form of payment fraud in which a fraudster deceives a victim into transferring money via wire transfer to a scammer’s bank account. Fraudsters may impersonate recipients known to a victim, or use manipulation, threats, or a sense of urgency to pressure a victim into initiating a wire.

Common forms of wire transfer fraud include:

• Romance Scams: A fraudster gets into an online romantic relationship with a victim and fakes a financial emergency to trick the victim into sending them money via wire transfer.
• Business Email Compromise: Fraudsters hack into a company’s email system. Afterwards, they impersonate its executives and instruct staff to initiate transfers.
• Fake Invoice: Fraudsters impersonate a legitimate vendor or supplier and send a fraudulent invoice to the victim that requests payment via wire transfer.
• Advance Fee or Lottery Scams: The victim is told that they won a lottery, but must pay an upfront fee through wire transfer to unlock or claim their winnings.
• Investment scams: Criminals promise high returns on investment and persuade victims to wire money; in fact, no investment exists at all.

Individuals and businesses can prevent wire transfer fraud by verifying wire transfer requests (ideally directly with the recipient through an official channel) to confirm their authenticity. They can also monitor accounts via alerts for unusual transfers or unsolicited requests, and by keeping tabs on the latest wire transfer fraud scams.