Wire Transfer scams all have one thing in common--the con artist convinces you to wire him money. Find out more about these scams so that you can recognize and resist this pitch!

The call comes at night, when you are least expecting it. When you pick up the phone, the voice says “Grandma, it’s me! I need your help!” Your “grandson” then tells you that he has gone on a fishing trip to Canada, had a car accident, and has been arrested—and now he needs money for bail. He begs you not to call his parents, but to just send the money as soon as possible. With rising panic and fear, you agree to help and are instructed to wire money to the address he gives you.

When you hang up, you begin to think—was that really your grandson’s voice? Since you would do anything to help him, you push your fears away and wire the money as asked. It’s only later that you begin to fear that it was all a scam, and that maybe it really wasn’t your grandson on the phone—but it is too late. Your money is gone, with no way to recover it.

This story has happened more frequently as scammers are using a new technique called the “grandparent" or "person in need"scam. Unfortunately, many people are being defrauded out of their money by this emotional and heartrending ploy. Law enforcement officials aren’t sure about how the scammers get their information. The calls could be random. A con artist could simply say “Hi Grandma” or “Hi Grandpa” when the phone is answered and wait for the victim to provide the name. “Hi Billy, how are you?” Published obituary notices may be a source of family information, or they might search blogs or public Web sites, such as Facebook and MySpace. The way to fight back is to make sure your friends and family members don’t become victims.

There are some steps you can take to protect yourself and your loved ones.  First, explain to others how the scam works. Tell them to be suspicious of anyone who calls unexpectedly and wants them to wire money – especially to Canada.  

Second, make sure they know the right thing to do is to call someone else in the family to verify the situation, even if you are told to keep it a secret. Create a family “password” so that you can verify the identity of a caller—if the voice on the phone doesn’t know the password, don’t send any money. 

• Do not send money if a caller requires you to send money “right now!”
• Do not send money to someone who tells you what to say to the wire transfer agent, or says you should hide information or lie to the wire transfer agent.
• Do not send money through a money transfer company or wire money directly into a seller’s bank account unless you know the seller personally or are positive of the seller’s identity.
• Do not wire money to pay for an item you bought from an online auction. If the seller demands to get paid by wire transfer, it’s safer to stop the transaction.
• Ignore the messages that tell you to send money to claim your lottery prize, surprise inheritance or dream job overseas. If you send money for ‘fees’ or ‘taxes’ you will get nothing in return.
• Do not play a foreign lottery over the phone or by mail – it is illegal.