Millions of people are affected by money transfer scams every year. The latest data from the ACCC, as of April 2024, shows financials losses of over $2.74 billion - and that's just the losses that were reported.
The most common money transfer scams always include at least one of the following:
A request from someone you've never met.
Someone in a crisis that you can't tell anyone else about.
A money transfer or gift card is the only form of payment accepted.
Paying money to get more money back.
What are the current bank scams and money transfer scams?
Getting to know someone online and after you feel a connection, they ask you to wire money
Never send money to someone you have not met in person
Our expert says: Noone is safe from being scammed
"I've been a finance journalist for 20 years, and it's even happened to me, multiple times! Unfortunately you need to be hypervigilant and treat every unexpected transaction as if it's suspicious. The biggest tool that scammers use is pressure - usually, they act as if there is a deadline or something bad will happen. Legitimate companies don't apply this type of pressure, so if someone is trying to hurry you, end the conversation and take a breather, then call your bank."
You receive a transfer on Revolut, PayPal, Apple Pay, Google Pay or a similar service from someone you don't know. You receive a message after the transfer claiming that it was sent by accident, and the sender will ask you to send the money back. You want to do the right thing so you refund them the "accidental" transfer amount, only to realise later you never received a transfer from them to begin with.
What to do
Do not refund them the amount. Chances are the original transfer they sent you was paid for with a stolen credit card and it will be cancelled on its own. Instead, tell the user to contact the platform directly for assistance.
Online purchase scams
Scammers leverage the anonymity of the Internet to rip you off, with fraudsters setting up completely fake websites, so you purchase an item and never receive it. Or, with bigger transactions like a car, they may ask for a deposit or upfront fees, before you've even see the car.
What to do
Verify the deal is legitimate by asking to meet in person where practical before any money changes hands. If anybody online says you can only pay with a money transfer or money order, find another retailer.
Lottery and sweepstakes scams
What luck! You've received a letter that you've scored a prize. Or maybe you're contacted about a lottery you've won. It's a lot of money, and there's only one catch: you first need to pay a fee or cover taxes to receive it. It's such a small amount, about $1,000. Surely that's worth receiving what you're due.
What to do
You should never have to pay upfront to receive a prize or lottery winnings - that alone should raise red flags. But if you're curious, research the company to see what others have to say. If it sounds too good to be true, it is.
"Get out of jail" scams
An email or phone call may come in from someone claiming to be a loved one - scammers can even use AI and deepfake technology to mimic someone you know. The fraudster could also pretend to be an attorney or police officer on behalf of a loved one, and the person requests money be sent immediately in order to post bail.
What to do
Never send money without verifying the identity of the recipient. If you're concerned you may be leaving someone in the wind, ask for the details of where they're supposedly being held then try to contact the loved one through friends and family.
Second-hand selling scams
You're trying to sell something online via Gumtree or Facebook Marketplace, and someone offers to buy it. But they're sending their uncle to collect it - and can they pay using PayID? They'll then send you proof of payment, but request you click a link to upgrade your account or access business transfers. This is when they convince you to click a dodgy link, giving them access to your online bank or credit card details.
You open your computer to an email from your bank asking you to verify your account number. Or it could be from an e-retailer needing confirmation of your password. Sometimes it's a link from your email provider itself asking you to click and double-check your details. It's all so official, how could it not be legit?
What to do
A legitimate bank, retailer or other service provider will never ask you to confirm your personal information, financial details or password via text or email. This is called "phishing", and you shouldn't reply or click any links in the email or message. Instead, report it to the ACCC and contact your bank.
Mystery shopper scams
You may be contacted about a fun new gig: becoming a mystery shopper for a local retail chain. Along with your welcome letter, you're sent a money order. Only the amount is more than it should be. When you contact the number on your letter, you're told to go ahead and cash it, and then simply send a money order for the surplus. Better yet, send a wire transfer to refund the company more quickly.
What to do
You've likely recognised this for what it is: just another variation of the bogus check scam. Do not cash the money order. And lose the number for this bogus company, instead of losing your hard-earned cash.
Charity scams
Disasters bring out the best in people. But they can also unearth con artists who prey on the altruistic. Be cautious of letters requesting donations in cash or by money transfer to cover the cost of aid.
What to do
Research the charity online through the Australian Charities and Not-for-Profits Commission (ACNC), which has the credentials of all genuine charities. Because some scammers use names that closely resemble well-known, reputable organisations, Google the exact name shown in your email or letter.
Nigerian dignitary scams
Although it's the butt of many jokes, the "Nigerian prince" scam still happens often. For this scam, you're contacted by somebody requesting your help in recovering a great deal of money. They claim that if you help them by providing your banking account information or money to pay fees, you'll be rewarded with a substantial portion of the money.
What to do
This is just another variation of the advance fee scam. Never provide your financial information or send money to anybody you don't know.
"Stranded traveller" scams
This one involves an email from friends, often ones travelling abroad, who've found themselves in trouble and need money sent immediately to return home. The amount is nearly always $1,000 or more and may even appear to come from a friend's actual email address. Except it's not actually your friend who's sending it - their account has been hijacked through a phishing scam.
What to do
Be wary of any email from a friend in trouble overseas. Attempt to make contact with them or confirm their whereabouts with your social network. As with other scams, never send money without being certain you know the recipient.
Online dating scams
Another tough one — and therefore popular among scammers — involves a bond with somebody you've met online through a dating site. Often, that person wants to immediately leave the site for a more intimate IM or text chat. They may claim to be working overseas with plans to visit soon. Over the course of time, you're led to believe there's a strong connection. And then they ask for you to transfer some money.
What to do
By now, you know the answer: don't send money to anybody you don't know. You could ask to meet in person, even if it seems impossible — their refusal will be a clear sign that they may not be who they say they are. If you were emailed a photo, consider using a reverse photo search to see if you can confirm the name you've been given.
Never send money to strangers. Under any circumstances.
Pay by credit card. That way, you’ll have some recourse and support from the bank if things go awry.
Be wary of unsolicited emails. Your email, financial and other service providers will never email you to confirm personal info or passwords.
Go with your gut. Con artists deal in pressure and threats. When in doubt, slow down. A quick online search can often confirm your suspicions.
How to choose a reputable money transfer provider
Most reputable online providers will have up to date security measures in place to make sure your data and information is secure when sending an international money transfer. Many will have dedicated email addresses or customer service phone lines to receive tips on potential scams. When choosing a provider, don't be afraid to ask tough questions and compare your options to find the safest one for you.
We currently don't have that product, but here are others to consider:
How we picked these
Finder survey: How many international transfers have Australians made in the last 12 months?
Response
Male
Female
2-5
4.27%
2.11%
0
1.86%
0.88%
1
1.86%
1.58%
10+
0.74%
1.05%
6-9
0.93%
0.7%
Source: Finder survey by Pure Profile of 1110 Australians, December 2023
I may be the victim of a scam. What should I do?
Report it to the authorities. If it involves fraud or theft, file a police report. For any financial and investment scams, it's best to contact the Australian Securities and Investments Commission (ASIC).
Inform the ACCC. You can report a scam online at scamwatch.gov.au/report-a-scam. While they can't help you recover the lost money, your report will help the ACCC warn the rest of the community about the latest scams.
Change your passwords. If you're worried your email, bank account or any other online account may be compromised, change your password straight away. It also may help to check for viruses with your security software, in case your device has been hacked.
Many online seller websites like eBay have their own protocol for reporting and dealing with scammers. If you’ve transferred money, you can also alert your money transfer company of your situation so they can be ready for any future complaints. While it’s tough to admit that you might have been the victim of somebody’s wrongdoing, try not to be too hard on yourself. Money transfer scams are on the rise because these cons are constantly evolving. By reporting it and talking openly about your experience, you’re helping others to recognise and put a stop to them. Learn about credit card fraud and how to keep your card safe.
Frequently asked questions
No, don't engage. You might be tempted to play sleuth, but it's safer to report them instead. Keep in mind that most smart scammers have taken precautions by making themselves untraceable.
Unfortunately, most scam victims won't be able to get their money back. It becomes even harder if you've sent the money overseas, as this is out of Australian government agencies' jurisdiction. Contact your bank, as they may be able to stop a money transfer, and report the scam to the ACCC. Be wary of any follow-up scams, especially those that claim to recover your losses for a fee.
No, you are not legally obligated to pay for anything you didn't order. If you receive a bill or harassing letters that you need to pay, let the seller know you didn't order it. If they insist, ask for proof that you ordered the item from them. If the harassment continues, contact your local consumer protection agency.
Scammers can try and trick you into sending money to their account, or they can manipulate you into thinking they've sent you money when they haven't. In these situations, your best asset is time. A scammer will try to pressure you to make a decision quickly. If you're not sure if a bank transfer is real or not or if you have concerns, stop engaging with the person and call your bank immediately. They can help you work out whether the transfer is legitimate or not.
With over 20 years of experience in property, finance and investment journalism, Sarah is a trusted expert whose insights regularly appear across television, radio, and print media, including Sunrise, ABC News, and Yahoo! Finance. She has previously served as managing editor for Your Investment Property and Australian Broker, and her expert advice has been shared over 2,500 times in 2023-2024 alone. Sarah holds a Bachelor’s degree in Communications and a Tier 1 Generic Knowledge certification, which complies with ASIC standards. See full bio
Sarah's expertise
Sarah has written 198 Finder guides across topics including:
Rosie Russell is a money transfers producer at Finder. She is on a mission to make personal finance easier to understand. Rosie has a Bachelor of Communication (Journalism) and Bachelor of Arts in International Studies from the University of Technology Sydney. See full bio
Compare international money transfer services to receive money here in Australia.
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