How to Avoid Money-Transfer Scams: Red Flags and Safe Habits

By Praveen Thummaluru · Reviewed for accuracy · Updated 2026-06-24

International transfers are convenient, but money that has been sent — particularly as cash pickup — is hard to recover. The good news is that almost every transfer scam relies on the same handful of tricks, and once you recognise them they are easy to avoid.

Common money-transfer scams

• Advance-fee ("pay to release") scams. You are told you have won a prize, inheritance, or loan, but must first "pay a fee or tax" by transfer to unlock it. There is nothing to unlock.
• Romance scams. An online partner you have never met in person develops an emergency — a medical bill, travel cost, or customs fee — and asks you to send money.
• Overpayment / refund scams. A "buyer" overpays for something and asks you to refund the difference; their original payment later bounces.
• Impersonation & phishing. A message or call pretends to be your bank, a transfer provider, a government agency, or a family member in trouble, pushing you to send money or hand over login details.
• Account-change fraud. A supplier or landlord you normally pay emails new bank details — actually a scammer who has compromised the conversation.

Red flags to watch for

• Urgency and pressure — "send now or you'll lose it." Scammers rush you so you do not stop to think.
• An unusual payment method — a request to pay via cash pickup, gift cards, or crypto to a stranger.
• A story that keeps needing more money — one fee leads to another.
• Secrecy — you are told not to tell your bank or family.
• Details that do not add up — mismatched names, new account numbers, or a contact who avoids a video call.

How to verify before you send

1. Confirm the person independently. Call a known number or video-call them — do not rely on the channel that made the request.
2. For changed payment details, re-verify through a previously trusted contact, never the new contact info in the message.
3. Type the provider's address yourself. Do not follow links in unexpected emails or ads.
4. Keep references private. A cash-pickup reference is effectively a key to the money — share it only with your intended recipient.
5. Start small with a new, legitimate recipient if you are unsure.

If you think you have been scammed

Act fast: contact the transfer provider to ask whether the payout can be stopped, tell your bank or card issuer, change any exposed passwords, and report it to the relevant authorities or consumer-protection agency in your country. Keep records of everything.

Where to report and learn more. In the United States, report fraud to the Federal Trade Commission at reportfraud.ftc.gov and read the FTC's consumer advice on money transfer scams, and you can submit a complaint to the Consumer Financial Protection Bureau. In other countries, contact your national consumer-protection body or financial regulator. Reputable providers also publish their own fraud-reporting channels — use the contact details on the provider's official website, not from a message you received.

The bottom line

Use reputable, licensed providers; slow down when someone pressures you; and verify the recipient through a separate, trusted channel before sending. When you are ready to send to someone you trust, you can still get the best deal — compare live rates and confirm the final quote on the provider's own site.

Frequently asked questions