How to Wire Money Safely

Wire transfers are fast and secure, making them an ideal payment method when time is of the essence. Unfortunately, those same attributes make them particularly attractive to scammers.

"Wires are popular with cybercriminals because the funds move quickly—and once sent are very difficult to recover," says Lisa Lang, a senior manager on the financial crimes awareness team at Schwab.

For example, relationship-based scams—in which a fraudster gains your trust before letting you in on a literally too-good-to-be-true investment opportunity—frequently involve wiring money to purchase cryptocurrency. Similarly, scammers may pose as a famous financial personality to lure you into their scheme. "Don't confuse familiarity with authenticity," Lisa says. "Liz Ann Sonders or Jim Cramer are never going to contact you directly about a potential investment."

A newer type of scam is when fraudsters utilize AI to reach out with an urgent request to wire funds in the voice of someone close to you. "It may sound uncannily like your granddaughter calling from her study abroad program," Lisa says. "But scammers need only three to five seconds of her voice from a social media video to conduct an entire conversation."

As a result, Lisa recommends the following precautions when wiring money:

• Be highly skeptical of wire requests you didn't initiate yourself, especially if you're being pressured to pay immediately.
• Use caution with online-only relationships; scams often start with platonic or romantic interactions that eventually lead to requests for money.
• Research the institution or person before sending money to confirm their identity.
• Always verify wire instructions with the recipient in person or by phone.
• Set up a phrase or password that family members can use to prove their identity in the event they need you to send them money unexpectedly.
• Trust your gut; if something feels off, call your contact back at a known number for verification before sending money.

"Most financial institutions—including Schwab—will cover losses if your account has been hacked," Lisa says. "However, if someone tricks you into making a transfer, you could be on the hook."