Protect Yourself from Money Transfer Scams

September 15th, 2021 by

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Most electronic money transfers from consumers in the United States to people abroad are defined by Federal law as a “remittance transfer.” But, as the Consumer Financial Protection Bureau explains, they are most commonly known as “international money transfers” or “international wires.”  

Any transfer of less than $15.00 is not considered a remittance transfer under federal law.

So what are your rights when you do a remittance transfer?

Before a financial institution can qualify to provide this service, they must inform consumers of information before the transfer can take place.

Related: How to Know if a Debt Collector is Legitimate

Some of this information includes: 

  • The exchange rate.
  • Any taxes or fees they collect from you.
  • Fees charged by the receiving agents abroad and certain other institutions involved in the transfer.
  • The amount of money expected to be delivered
  • When the funds will be available.
  • A statement of additional foreign taxes and fees that may be deducted from the amount transferred, if applicable.
  • What to do if an error occurs, how to cancel a transfer, and how to file a complaint.

If you do need to cancel, it needs to be done within 30 minutes. There should also be no charge for the cancellation unless the transfer has already gone through.

Related: Learn About Common Financial Scams

Transfer institutions must investigate complaints. If you believe an error was made, you need to contact the facility promptly. The institution generally has 90 days to investigate the transfer and must notify you of the result. 

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