June 6, 2010
Wiring money may be a fast, efficient way to quickly get funds to a family member across the country, but consumers should always know exactly who they are sending it to, and never wire money to complete any kind of purchase.
In recent years, scammers have latched onto money "wires" as an almost foolproof way to escape undetected after ripping someone off. In almost every case, once the money has been sent, it can't be recovered or traced. It's just like handing someone a handful of cash.
West Virginia Attorney General Darrell McGraw says that "a red flag should go up" when a consumer receives a request to wire money. Legitimate businesses and "opportunities" will not require the use of Western Union or Money Gram wire transfer services.
Previously, McGraw has issued warnings about the "Grandparents Scam," in which con-artists pose as grandchildren or relatives and ask their "grandparents" to send funds via wire services or money orders. One variation is known as the "friend in need" scam, where tech-savvy crooks hack into a person's e-mail and use the information found to convince victims they are assisting a close friend.
"In order to avoid becoming a victim, refuse to send money via Western Union or Money Gram," McGraw said.
McGraw offers the following tips for dealing with crooks posing as genuine friends or relatives in need:
• Offer to contact other family members and friends to figure out how to help.
• Propose contacting authorities in the town where the person claims to be for assistance.
• Offer to call the friend or relative back.
• Never give out bank account, credit card, social security or any personally-identifying numbers over the phone.
• Ask questions that only your friend or relative would know the answer to. Beware, if an e-mail account has been compromised, the crook may know some of the answers.
"Most criminals will hang up the phone if you ask too many questions," McGraw said. "A real friend in need will allow you to do whatever it takes to verify their true identity and can usually be assisted without the need for a wire transfer service."
Other common scams that rely on wire transfer services are the "Sudden Riches Scam," which requires money to be wired in order to claim a lottery or sweepstakes prize, or the "Love Losses Scam," in which a crook becomes familiar with a person through an on-line dating site or chat room and then asks that the victim wire money so that they can meet in person.
