Every year, countless U.S. consumers fall victim to fraud, losing large sums of money through scams involving money transfer services. While money transmitters and financial institutions offer a convenient way to send funds to trusted individuals such as family and friends, they are also commonly exploited by scammers.
Fraudsters often start with a convincing story, posing as someone in urgent need, a romantic interest, or even a fake business opportunity. Regardless of how it begins, the scam usually ends the same way: they ask you to send money through a wire transfer. Once sent, recovering that money is nearly impossible.
To stay safe, always remember this: never send money to someone you haven’t known personally for a long time. Use money transmitter services only through verified physical branches when sending funds, and only to people you trust.
Note: Order Express is committed to consumer safety and regulatory compliance. For more information, visit FinCEN and Federal Trade Commission (FTC). You can also review Order Express’s licensing information here
How to Recognize a Money Transfer Scam
In today’s fast-paced world, scammers are constantly coming up with new ways to exploit unsuspecting individuals, and money transfer scams remain one of the most common and dangerous. These schemes are designed to create a false sense of urgency, pressuring you into sending funds quickly, often before you’ve had time to think it through.
By learning how to recognize the red flags, you can take control and avoid becoming another statistic. Below are five key warning signs that signal a potential money transfer scam, and what you should do if you spot them.
You’re Asked to Send Money
If someone you don’t know well, or have never met, asks you to send money using a money transmitter, it’s a major red flag. Scammers often pose as someone in need, a buyer, a seller, or even a distant relative in trouble, hoping you’ll act quickly without verifying their story. Never send money to a stranger, no matter how convincing the story may seem. Money sent through a money transfer can often be picked up instantly and is typically difficult, if not impossible, to recover.
Always use money transmitter services only through official branch locations and only when dealing with someone you know and trust.
Someone Sends You a Check and Asks You to Send Part of the Money Back
This is a common scam tactic. A scammer may offer to buy something you’re selling or claim that you’ve won a prize. They send a check, often for more than the expected amount, and ask you to send the extra funds back. Eventually, the check bounces, and you’re left responsible for the entire amount. To protect yourself, never agree to return money from a check sent by someone you don’t know. Always wait for the check to fully clear and confirm its legitimacy directly with the issuing bank. If possible, avoid checks altogether and stick to secure, local, in-person transactions.
The Person Says They Need a Confirmation Code or MTCN to Access the Money
Scammers might claim they can’t access transferred funds unless you provide a confirmation code or reference number, such as an MTCN. This is false. Once a money transfer is complete, the funds can often be picked up immediately, regardless of whether a code is shared. Never assume that a code protects the money. If someone is pressuring you to send a transfer and insists they can’t retrieve the funds without a code, it’s likely a scam.
Always take a moment to verify any request using a known and trusted source before proceeding.
The Communication Seems to Come from Overseas, Often With Poor Grammar or Spelling
Many scams originate from outside the country, and the language used in these messages is often a giveaway. Be on the lookout for misspellings, awkward phrasing, and overly formal or strange language, as these are common signs that the message may be part of a mass scam operation. Trust your instincts, if the message feels off or too generic, it probably is. If someone is asking you for money, even if they claim to be a loved one, always double-check before taking any action. Don’t respond or send money unless you are completely certain the request is genuine.
They Use TTY Relay Services and Follow Up With Email
Scammers sometimes use TTY (text telephone) relay services to pose as someone who is hearing impaired, allowing them to disguise their voice, location, and identity. They may follow up with emails to continue the scam and avoid a direct phone call. While TTY services are legitimate tools for individuals with hearing loss, any unexpected calls made through TTY should be approached with caution. Never send a money transfer based on a relay call unless you have confirmed the identity of the caller using a known and trusted phone number. When in doubt, it’s best to stop and verify before proceeding.
Stay Alert, Stay Safe from Money Transfer Scams
If any of these red flags sound familiar, pause before taking action. Scammers often rely on emotional pressure and urgency to push you into sending money without thinking it through. Take a step back, verify the information, and remember:
- Use money transmitter services only through physical branch locations like Order Express
- Never send a money transfer to someone you haven’t met or known personally for a long time.
- When in doubt, talk to someone you trust before you proceed.
Understanding these red flags is the first step in protecting yourself, your finances, and those around you from falling victim to money transfer scams.
Types of Money Transfer Scams And How to Stay Safe
In a recent case, a scammer impersonated a government agent and convinced an elderly consumer to wire $3,000 to ‘protect her assets.’ She later reported the scam to authorities, but the funds were unrecoverable. Scammers are always coming up with new ways to trick people into sending money. These scams can seem convincing, but if you know what to look for, you can protect yourself and others. Below are some of the most common types of money transfer scams, along with simple tips on how to stay safe.
Note: Order Express will never ask for your MTCN (Money Transfer Control Number) over the phone or via email. We will never request payment or personal information through unofficial channels. We will never threaten you or demand immediate action.
Fake Buyers from Classified Ads
Scammers often respond to ads for cars, electronics, or other valuable items by pretending to be interested buyers. They typically send a check, often for more than the asking price, and then ask you to send the extra money to a third party or refund the difference after they “change their mind.” Eventually, the check bounces, and you’re left responsible for the entire amount. To stay safe, only deal with local buyers you can meet in person.
Accept payment only for the exact sale amount, and if you’re accepting a check, verify it in person at a local bank before handing over any goods.
Fake Sellers from Classified Ads
Some scammers act as sellers by posting fake listings for vehicles or other expensive items on classified ad sites. They often ask buyers to send payment through a money transfer or try to direct them to use a fake “escrow” service to make the deal seem secure. To stay safe, only buy from local sellers who are willing to meet in person. Be cautious if the seller insists on a specific form of payment, especially money transfers. If anything about the transaction feels rushed or overly complicated, it’s best to walk away.
Lottery and Sweepstakes Scams
You receive a message saying you’ve won a prize or sweepstakes. Along with it comes a check, and instructions to send part of it back to cover “taxes,” “processing fees,” or “customs.” Once the money is transferred, the check bounces, and there is no prize. To stay safe, remember that legitimate prizes never ask for payment upfront. You should not trust anyone who tells you to send money to claim a reward. Always be cautious of unexpected winnings, especially from contests you never entered.
“Relative in Trouble” Scams
These scams play on your emotions. You might receive a call, message, or email from someone claiming to be a family member or close friend in urgent need of help, often saying they’re in another country. They may claim they’ve been arrested, injured, or robbed, and they beg you to send a money transfer right away. To stay safe, remain calm and avoid acting out of panic. Try to verify the story by calling the person directly using a phone number you already have. If you’re unable to reach them, contact other family members or friends to confirm the situation before taking any action.
Catering and Food Order Scams
Businesses are targeted when scammers use stolen credit cards to place large catering or bakery orders. They overpay and ask the business to send a portion of the money to a delivery service or driver, often via money transfer. To stay safe, be suspicious of large orders paid in advance, especially if the buyer is out of town. Never agree to forward part of a payment to someone else. If you have any doubts, it’s best to cancel the order and report the incident.
Advance-Fee Loan Scams
You apply for a loan and are quickly approved, but then you’re told you need to send a processing or approval fee through a money transfer. After you pay, the loan never arrives. To stay safe, remember that legitimate lenders do not charge upfront fees through money transfers. Any required fees should only be deducted from the loan amount after approval, not paid in advance. Always research the lender thoroughly, and never share personal details unless you are certain it’s a legitimate business.
Secret Shopper Scams
You respond to an ad for a mystery shopper job. You’re sent a check and told to keep part of it as your payment and send the rest via money transfer. The check is fake, and when it bounces, you’re left covering the loss.
To stay safe, avoid any job that involves receiving checks and transferring money. Real secret shopper programs do not ask you to handle money transfers. Also, don’t pay to get hired or for access to job lists, this is a clear red flag.
Work-from-Home Money Transfer Scams
This scam involves job offers for “payment processors” or “international agents.” You’re sent checks to deposit, told to keep a small cut, and asked to transfer the rest. Often, the checks are stolen or fake, and once they bounce, you’re liable.
Never agree to transfer money on behalf of an employer using your own account. Be cautious of job offers that reference “money transfers” or “payment processing,” as these may be signs of fraudulent activity. Only share your bank account details with verified, legitimate employers, and do so only after you have been officially hired.
Foreign Royalty or “Nigerian” Scams
You receive a message from someone claiming to be royalty, a wealthy businessperson, or a foreign official who wants your help moving a large sum of money. They promise a big reward but first ask for a “small” payment to cover taxes, legal fees, or banking costs. To stay safe, ask yourself: “Why would someone I’ve never met trust me with their fortune?” Never send money or share personal details with someone you don’t know. If the offer seems too good to be true, it almost certainly is.
Conclusion
Staying informed is your first line of defense against money transfer scams.
Scammers prey on urgency, trust, and lack of awareness to steal your money.
Recognize the red flags: unexpected checks, urgent requests, overseas messages, or anyone asking for MTCNs. Always verify who you’re dealing with, never assume a story is true without checking.
Use money transmitters like Order Express only at official physical locations.
Avoid digital communication traps; scammers often hide behind screens and fake identities.
Never send money to someone you haven’t personally known and trusted for a long time.
When unsure, pause and consult a friend or family member.
A moment of caution today can save you from financial loss tomorrow.
Stay alert, ask questions, and report suspicious activity immediately, it could protect you and others.
Disclaimer:
Order Express is a licensed Money Services Business. This content is intended for educational purposes only and should not be considered legal or law enforcement advice. If you believe you have been a victim of fraud, you should report it immediately to your local authorities and the appropriate regulatory agency.
FAQs
What is a money transfer scam?
A money transfer scam tricks you into sending funds to a fraudster, usually with a false story or urgent request.
Can I recover money after a scam transfer?
Once sent, money transfers are nearly impossible to recover, especially if picked up in cash.
How can I tell if a money transfer request is a scam?
Look for red flags like urgency, unknown senders, poor grammar, or requests for confirmation codes.
Are money transmitters like Order Express safe?
Yes, when used at official branch locations and only for sending money to trusted people.
What should I do if I suspect a scam?
Stop the transfer, don’t respond, and report the incident to the money transmitter and authorities immediately.
