U.S. consumers lose millions of dollars each year to fraudsters using wire transfers as part of their scams. Western Union, Moneygram and similar businesses allow you to send money quickly.
If money is transferred but not received, the sender should contact the bank or service used to initiate the transfer to track the transaction. They can also contact the recipient's bank to inquire if the funds have been received.
Even though wire transfers are generally reliable, things can occasionally go wrong. This can lead to delays or, in some cases, the bank rejecting the wire transfer altogether — regardless of where it's coming from.
Wire transfers are used to send money electronically from one bank account to another. Sending money this way is like sending cash in that, once sent, the wire transfer typically cannot be reversed. Wired funds are considered the property of the recipient and wire transfers may be final.
Who is responsible for lost wire transfer? It depends on your particular situation. If you provided incorrect recipient info, you're usually responsible. If the bank makes an error, the responsibility is on them.
Identity theft: Criminals can use your personal information to create fake wire transfers, which can lead to identity theft. Mistaken transfers: You or the person you're sending money to may enter the wrong account information, resulting in the money being sent to the wrong account.
Usually, banks can only reverse wire transfers if the wire transfer it was an error from the bank, and they sent it to the wrong account number. However, if the sender gives incorrect information, there is no chance of recourse.
Once initiated, the funds transfer is guaranteed. A transaction can only be stopped if the receiving bank gets a cancellation notice from the sending bank before instructions are processed to complete the transfer.
Wire transfers are generally safe and secure, provided you know the person who's receiving them. If you use a legitimate wire transfer service, each person involved in a wire transfer transaction should be required to prove their identity so that anonymous transfers are impossible.
If you're worried about your payment, you can contact the sending bank and request a trace on the wire transfer using the reference number¹. Many banks will do this, though you may have to pay an additional fee.
Technical Issues: If the wire transfer was not completed due to technical issues, such as a system error or internet outage, the transfer can be reversed. Recipient Cooperation: In some cases, the recipient may be willing to cooperate with the sender to reverse the wire transfer.
If the receiving bank rejects the wire transfer, the funds will ultimately be returned to the original account. Typically, you can expect a rejected wire to be returned within 2 business days of the original transaction.
Verify the request by calling the requestor using a number you have previously called — not the number from the current wire transfer request. Ask for the person to verbally repeat requests to ensure that the information received is legitimate.
If transfers occur between accounts at the same financial institution, they can take less than 24 hours. Wire transfers via a non-bank money transfer service may happen within minutes. If you're sending money to another country, however, it may take as many as five days for the recipient to receive their funds.
What To Do If You Wired Money To a Scammer. If you sent money using a wire transfer company like MoneyGram, Ria, or Western Union, contact that company right away. Tell them it was a fraudulent transfer. Ask them to reverse the wire transfer and give you your money back.
If the bank initiated the transfer, notify the bank immediately so that it can investigate your claim. If you first contact the bank by phone, it is a good practice to follow up in writing. If you wired the funds through a third party (e.g., Western Union), contact that party to find out what their procedures are.
Requests for funds to be transferred - always check the bank account details are legitimate and verify it directly with the financial institution before making any payment. You can use NameCheck to check for incorrect payment details.
Scammers have received the money, transferred it to another account, and disappeared. Falling victim to phishing, pharming, or CEO fraud unfortunately doesn't qualify for reversing a wire transfer.
Wire transfers don't “bounce” as cheques sometimes do because banks verify the transfer funds before approving an international money transfer. While it eliminates most potential problems, a few things can still happen throughout the process: You can supply a wrong or inaccurate account number.
You're Asked to Wire Money to Another Country
Typing or grammar errors are a common sign of foreign scammers attempting to get you to send them money. Learn more about other money transfer scams on the Federal Trade Commission website. American scammers will also sometimes ask you to send money overseas.
ACH payments are considered the more secure option for senders as they use the NACHA network. Wire transfer is a less secure system for money senders. Payments are instant and impossible to reverse.
Generally, it isn't safe to share your bank account information, including your routing number, with anyone you don't know. The stakes are too high to trust your bank account and routing number to a stranger.