Scams - Money Transfer Requests

Money transfer scams are on the rise. Be very careful when someone offers you money to help transfer their funds. Once you send money to someone, it can be very difficult, if not impossible, to get it back.

What to Look For

The Nigerian scam (also called the 419 fraud) has been on the rise since the early-to-mid 1990s in Canada. Although many of these sorts of scams originated in Nigeria, similar scams have been started all over the world (particularly in other parts of West Africa and in Asia). These scams are increasingly referred to as "advance fee fraud".

In the classic Nigerian scam, you receive an email or letter from a scammer asking your help to transfer a large amount of money overseas. You are then offered a share of the money if you agree to give them your bank account details to help with the transfer. They will then ask you to pay all kinds of taxes and fees before you can receive your "reward". You will never be sent any of the money, and will lose the fees you paid.

Then there is the scam email that claims to be from a lawyer or bank representative advising that a long-lost relative of yours has died and left you a huge inheritance. Scammers can tell such genuine sounding stories that you could be tricked into providing personal documents and bank account details so that you can confirm their identity and claim your inheritance. The "inheritance" is likely to be non-existent and, as well as losing any money you might have paid to the scammer in fees and taxes, you could also risk having your identity stolen.



If you or your business is selling products or services online or through newspaper classifieds, you may be targeted by an overpayment scam. In response to your advertisement, you might receive a generous offer from a potential buyer and accept it. You receive payment by cheque or money order, but the amount you receive is more than the agreed price. The buyer may tell you that the overpayment was simply a mistake or they may invent an excuse, such as extra money to cover delivery charges. If you are asked to refund the excess amount by money transfer, be suspicious. The scammer is hoping that you will transfer the refund before you discover that their cheque or money order was counterfeit. You will lose the transferred money as well as the item if you have already sent it.

Protect Yourself

Remember
If you have been approached by someone asking you to transfer money for them, it is probably a scam.
CautionNever send money, or give credit card or online account details to anyone you do not know and trust.

Think
Don't accept a cheque or money order for payment for goods that is more than what you agreed upon. Send it back and ask the buyer to send you payment for the agreed amount before you deliver the goods or services.

Investigate
Examine the information on the Canadian Anti-Fraud Centre website for information on how to protect yourself against money transfer scams.

Ask yourself
Is it really safe to transfer money for someone I do not know?

To report a scam, contact the:

Canadian Anti-Fraud Centre
www.antifraudcentre.ca or call 1-888-495-8501

In addition, credit bureaus can put a fraud alert on your account, which will alert lenders and creditors of potential fraud:

Equifax: 1-800-465-7166
TransUnion: 1-866-525-0262
1-877-713-3393 for Quebec residents

Stay tuned for more about fraud in the coming days.

Click here for more about fraud.

* With information from the Government of Canada Competition Bureau web site and The Little Black Book of Scams published by the Competition Bureau Canada 2012.