1. The Overpayment Scam
In this scenario, someone sends you a cheque or payment for more than the agreed amount—often through a marketplace sale or freelance job—then asks you to wire the “extra” back. The original payment eventually bounces, and you’re left covering the difference. If someone overpays you and urgently asks for a wire transfer of the excess, it’s almost always a scam. Wait for payments to fully clear before taking any action.
2. The Emergency or “Grandparent” Scam
A caller pretends to be a family member—often a grandchild—claiming they’re in urgent trouble and need money wired immediately. They’ll ask you not to tell other family members. This scam is effective because it plays on emotion and urgency. Always verify the identity of the person by calling them back on a known number before sending anything.
3. Fake Online Marketplace Buyers
If you’re selling something online and a buyer insists on paying via wire transfer or money order from overseas—especially for more than the asking price—be cautious. Legitimate buyers typically use standard payment methods and don’t push you to rush.
4. Romance and Relationship Scams
These scams develop over weeks or months through dating apps or social media. The scammer builds trust, then eventually creates a crisis that requires you to send money internationally. The Canadian Anti-Fraud Centre reports that romance scams consistently rank among the highest-loss fraud types in Canada. Be cautious of anyone you’ve never met in person who asks for financial help.
5. Phishing Emails Posing as Financial Institutions
Fraudsters send emails or texts that look like they’re from a bank, transfer provider, or government agency, asking you to click a link and enter your personal information. These messages often create false urgency, such as “your account will be locked.” Legitimate financial institutions will never ask for your password or PIN by email.
How to Stay Safe When Sending Money
The best defense is using a regulated, FINTRAC-registered money services business with a physical location where you can verify credentials and ask questions face to face. Avoid sending money to people you’ve never met in person. Never rush a transaction because someone is pressuring you. And if something feels off, trust your instincts—it’s better to pause and verify than to lose money to a scam.
💡 ALTAIF is a FINTRAC-registered money services business (Registration No: M08033834). We follow Canada’s anti-money laundering and counter-terrorist financing framework to keep your transactions safe. Visit us in Ottawa or call 613-260-2338.