Overseas transfer scams are hitting Canadians hard

Many people send money overseas, and while international transfers are a convenient way to pay bills or support family abroad, they do come with a risk of scams.

If you think you’ve been scammed, acting quickly can help to prevent further losses and, in some cases, recover your stolen money. Whether you’ve been targeted for a fake investment opportunity or tricked by romance scam, there are several steps you should take if you’ve been a victim of financial fraud.

Contact your transfer provider

The first step is to contact the company or financial institution that processed the transfer. Tell them you believe the transaction was fraudulent and ask whether the payment can be cancelled, recalled or investigated.

You should act as quickly as you can; once the money has been deposited or collected by the scammer, recovering it can be very difficult, and there’s no guarantee that your provider will be able to reverse the transfer.

If there’s a chance the scammer could have access to your bank account or other sensitive information, contact the bank as soon as possible to tell them what’s happened.

Report the scam

Canadian consumers who have been victims of fraud should report the incident to the Canadian Anti-Fraud Centre. If there’s an immediate danger to life or it’s an active crime (the fraud or suspect is present at that very moment), you should also call the local police service.

When reporting the scam, provide as much information as possible. Keep your transfer receipts, confirmation numbers, emails, text messages, screenshots, phone numbers and any other communications you’ve had with the scammer, and share these with the authorities.

Even if you haven’t lost money, reporting an attempted scam can help authorities identify patterns and warn others about active scams.

Beware of recovery scams

Unfortunately, being scammed once can make you a target for another scam.

Fraudsters may contact victims claiming they can recover their lost money. They might pose as lawyers, investigators, government officials or recovery specialists and ask for personal information or an upfront fee.

It’s very important to make sure that any authorities you report the fraud to are legitimate. Be extremely cautious about unsolicited offers to recover your money and remember that legitimate organisations won’t demand an upfront payment in exchange for guaranteeing that your lost funds will be returned.

How to avoid international transfer scams

The best way to protect yourself from a money transfer scam is to thoroughly check who you’re sending money to and why. Scammers often create a sense of urgency or use convincing stories to pressure people into making a payment before they stop and think.

Before sending money overseas:

• Verify who you’re sending money to. If you’re paying someone you haven’t met in person, independently check their identity and contact details.
• Be wary of unexpected requests for money or demands for urgent payments.
• Think carefully about investment opportunities. Be cautious of anyone promising guaranteed or unusually high returns, particularly if they ask you to transfer money overseas.
• Never share security information. Don’t give anyone your passwords, PINs, verification codes or online banking details.
• Check payment details carefully. Before confirming a transfer, make sure the recipient’s name, account details and amount are correct.
• Take your time. Scammers may pressure you to act quickly or tell you not to discuss the payment with anyone else. A legitimate request should withstand reasonable checks.
• Use a reputable transfer provider. Check that the company is legitimate and understand its fraud protections, fees and cancellation or recall procedures before making a transfer.

If something doesn’t feel right, stop and seek independent advice before sending the money. Taking a few extra minutes to check a payment could help prevent a larger loss.

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