Money Transfer Scams: How to Protect Yourself Online

Online money transfers are fast and easy to use, but you need to be careful. They can also put you at risk of scams. As more people use digital payments and send money to other countries, scammers come up with new tricks to take your money. In this guide, you will read about the most common types of money transfer scams and how you can keep yourself safe.

Common Types of Money Transfer Scams

Authorised Push Payment (APP) Scams

APP scams happen when someone gets tricked into sending money to a fraudster on purpose. This often takes place through an app.

This can include:

• Fake invoices
• Romance scams
• Investment opportunities

Many people think they are giving money to a real company, a friend, or someone they trust. But the sad part is, a lot of them learn too late that the money has gone to a scammer’s bank account.

Invoice and Business Email Compromise Scams

This often happens in business dealings. A scammer acts like a real supplier and sends an invoice with changed bank details. If you pay it, the money goes right to the scammer’s account.

Phishing and Fake Payment Providers

Scammers try to trick people by making fake payment service provider (PSP) websites. They also send emails that try to steal your personal or bank details. These emails often look like they are from well-known brands such as PayPal. A scammer may use web addresses that seem real when you first see them, but they are actually fake. Always be careful when you get emails or visit psp websites.

Impersonation Scams

Fraudsters can act like they are your bank, HMRC, or even someone you know. They might say your money is in danger. They can tell you to move your cash “for safety.”

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How to Avoid Becoming a Victim of a Scam

1. Double-Check Payment Details

Before sending money, always confirm:

• The account details like IBAN, sort code, and other needed info
• The right payment provider
• The person’s or business’s name and their work address

Get in touch with the company by using a verified email address or phone number. Do not use the contact details that you find in an invoice or in an email.

2. Use Secure and Regulated Providers

Pick providers that the Financial Conduct Authority (FCA) controls or are under the UK’s Payment Services Regulations (PSR). You should use an app from the App Store or Google Play. This helps lower your risk.

3. Be Aware of the Contingent Reimbursement Model (CRM) Code

This code helps if you are the victim of fraud. It offers some protection for people who use faster payments or bank transfers. The banks that take part in this code include:

• Barclays
• HSBC
• Lloyds
• Bank of Scotland

But, you have to show that you took enough care and did not act in a very careless way for the reimbursement to be considered.

4. Know the Signs of a Scam

• There can be pressure to act fast.
• You might get payment requests that feel odd, like CHAPS or using cryptocurrency.
• Some will ask for card payment over the phone or by email.
• Watch out for strange or wrongly spelled website addresses.

5. Take Action Immediately if You’re Scammed

• Get in touch with your payment provider or bank right away.
• Tell Action Fraud and the Financial Ombudsman Service about the scam.
• Make a formal complaint to your provider. Mention the CRM Code if it fits your case.
• Ask for emotional support—being a victim of a scam can feel hard.

What If the Bank Refuses to Reimburse You?

If your bank denies reimbursement:

• Send all of your papers to the Financial Ombudsman and ask them to look at your case.
• Show proof that you read the security advice and checked the details.
• Say that you were not lazy and you took all the right steps, which shows your due diligence.

The ombudsman can look at if the bank used the right steps when handling a case. This includes checking if the bank did what is needed by the crm code and the advice given by the lending standards board and their crm rules.

Tips for Businesses

• Use invoice templates that have been checked
• Keep your email systems safe inside the company
• Teach staff to notice requests that look strange
• Have two or more people approve each bank transfer

Correct as of 05 June 2025

FAQs – About Money Transfer Scams

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