Millions of people move across the world every year. Whether for work, love, or just a change of pace, it was estimated that at the end of 2024 as many as 93 million immigrants and their birthright children were living in the US – representing 28% of the entire population. The number is a little smaller in the UK, where 10.7 million (16%) people were said to have moved from overseas at the time of the last census.
But just because so many foreign nationals are now calling a new nation home, it doesn’t mean their financial ties are cut with their homeland. The process of sending money to and from one country to another is known as a remittance; and these remittances represent a huge amount of money moving across borders every year.
With so much money changing hands, this can catch the attention of scammers looking to exploit unsuspecting victims. At Remitly, we want to make sure your money is as safe as possible. That’s why we’ve created this informative guide to highlight the biggest threats and types of remittance scams that exist, as well as support on how to prevent and recover from them.
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1
What is a remittance scam?
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2
Common remittance and money transfer scams that target immigrants
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3
What are the signs that I’ve been targeted by a scam?
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4
How can I protect myself from a money transfer scam?
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5
What should I do if I think I’m the victim of a money transfer scam?
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6
The current state of money transfer and remittance scams across the world
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7
What is being done to combat remittance scams?
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8
Frequently asked questions
What is a remittance scam?
A remittance scam sees a scammer using a number of tactics to trick people who are sending money across international borders via transfer services or apps. This might involve impersonating businesses or other legitimate entities, using emergency situations to exploit the emotions of the victim, or offering unrealistic financial returns on an investment.
Because of how frequently they tend to send money internationally, immigrants are the most common targets of remittance scams. With the global remittance industry expected to continue soaring well into 2032, it’s more important than ever to be aware of and prevent scammers from getting access to your money.
Common remittance and money transfer scams that target immigrants
One of the most effective ways to fight back against remittance scams is to arm yourself with information. By understanding what an international money transfer scam might look like, you’ll be better equipped to prevent one from successfully targeting you. These are some of the most common scams you may find in the remittance industry.
1. Immigration scams
Unsurprisingly, this type of scam is commonly targeted at those living or in the process of moving overseas. The scam happens when bad actors reach out in the guise of government bodies and imply that there’s an issue with your immigration documents, or any kind of legal papers. Most commonly, they’ll ask for an immediate up front payment to fix the issue. They’ll say that failing to do so could result in a heavier fine, or even deportation.
Sometimes you might also have third-party agencies contact you and claim they can expedite the visa or immigration process if you pay them for their services. These cold callers are almost always fakes, who won’t be able to speed the process up at all.
Remember that you will have already provided most of your personal details on any legitimate applications for a visa. What’s more, you can look up any phone numbers or email addresses associated with those contacting you to verify if they’re real or not. The best advice if you’re not sure is to hang up the phone and get in touch with the agency using contact info from their official website.
What to watch for:
Messages coming from loved ones in ways that are irregular to how they normally get in touch (e.g using a new messaging app).
Loved ones asking for large sums of money that can only be sent via a wire transfer or through a prepaid card.
An elaborate story about how they’re stranded or stuck and need money to get out of their situation.
2. Family emergency scams
Scammers often try to play on our emotions to get money from us. If you receive a strange text or social media message from someone claiming to be a friend or member of your family in need, it could be a scammer trying to trick you. They’ll often say they need money urgently, asking for you to send it via a wire transfer or on a prepaid card.
This kind of scam can be effective, as people may not question whether someone they know in real life is fake or not. Because of that, it’s harder to spot them. Luckily, there are still factors you can look out for.
The best course of action here is to immediately contact your loved one via the channel you’d normally use. If they’re unresponsive, give them a call. Another tip is to ask a family member or friend for a second opinion on a video call.
What to watch for:
Messages coming from loved ones in ways that are irregular to how they normally get in touch (e.g using a new messaging app).
Loved ones asking for large sums of money that can only be sent via a wire transfer or through a prepaid card.
An elaborate story about how they’re stranded or stuck and need money to get out of their situation.
3. Investment scams
Everyone likes the idea of making easy money. Scammers target that desire by reaching out and offering investment schemes and plans which promise to make you a lot of money – so long as you’re willing to part with an initial up front deposit. These schemes often promise the world, with supposedly little to no input required from you after your initial money is invested.
Verify the legitimacy of the firm you’re dealing with when it comes to any kind of financial investment. Always make sure to research any investment you make in life, and don’t rely on the word of others to experience success in this area. It’s generally advised that you not take the investment advice of someone who has reached out to you with no prior connection. You can also check this online database to see what investment scams have currently been reported all over the world.
What to watch for:
A need to invest quickly or else risk “missing out”
Cold calls or emails from investors you don’t personally know
Any deals that sound too good to be true
4. Romance scams
Romance scammers will manipulate your emotions to convince you to part with your hard-earned money. They’ll spend time building up a relationship with you, before creating elaborate stories or circumstances that require you to send them money. These will usually come in the form of medical bills or travel costs.
In extreme cases, the initial chats that build trust can go on for months. You may also hear stories of how your new romantic flame has been trapped overseas and needs a payment to be released by foreign authorities.
One of the quickest ways to verify who you’re talking to is to ask them to speak on a video call. If they send you images, you can also enter their photo into a reverse image search to see if it’s real. You can do this by using tools such as Google Lens or TinEye. As a rule of thumb, even if you’re not sure if they’re real or not, it’s best not to send money to people you’ve never met in person before.
What to watch for:
Strangers coming into your life but refusing to go on a video call with you
Being asked for money for things like food, emergency medical bills, or travel costs
A sense of urgency to send money
5. Cryptocurrency scams
As cryptocurrency has a lot of interest in the news and on social media, it has made it a hotbed for scammers. Many people have no need to engage with the cryptocurrency world, which can mean they lack knowledge to know when something is a scam or not.
Working in a similar way to investment scams, a fraudster will reach out and ask you for a deposit which they can place in the crypto market. They’ll exploit stories of genuine success to imply you’ll experience the same results. In reality, they’ll often keep the deposit for themselves.
If you don’t understand the world of crypto, it’s best to avoid it altogether. Placing your money in the hands of a stranger is not smart. If you do decide to invest in crypto, make sure to only invest what you can afford to lose, and guarantee you’re using a legitimate investment firm.
What to watch for:
Promises to make you outlandish or unbelievable amounts of money
A need to give a large up front amount of money
A sense of urgency as though the money is needed immediately
6. Tech support scams
We all use digital devices on a daily basis, no matter how old we are. Scammers are now reaching out and convincing individuals that some of these have been compromised by viruses, with the only way to fix them being to either send a flat fee or give the scammer access to the device remotely.
Once they get hold of your device, they’ll be able to access sensitive personal information. This could be anything from private info to your bank account login details.
Make sure to independently verify the identity or email accounts or phone numbers of people who contact you, and never give out sensitive private data to people you don’t know. If they’re from a well-known company, you can look up their number on the internet and call them back using the details on the official website.
What to watch for:
Someone representing a large company like Microsoft or Apple cold-calling you out of the blue
7. Blackmail, extortion and threat scams
If you’re living in a new country, it can be easy to feel somewhat lonely. Even if you have friends or family in your new homeland, it still takes time to bed in and feel totally at home. This vulnerability is often exploited by scammers who reach out with fake threats, saying that if you don’t pay up they will release embarrassing or incriminating information about you. In extreme cases, they may even threaten physical harm.
If you receive any emails or calls like this, it’s smart to hang up immediately and report them to the police. While you should report any scam, the threat to you is something the police should not take lightly. Make sure to never comply with any of their demands. As a general rule of thumb when sending money online, you should never pay people via odd methods, such as gift cards or cryptocurrency.
What to watch for:
These calls or emails will be unsolicited
Threats tend to embellish a lot, and usually involve stories such as filming via your webcam
You will be told you need to pay a fee to fix the issue
You may be told that police will be called to your door if you don’t pay up
You might be asked to transfer money to another account to keep it “safe”
8. Prize scams
If someone reaches out to you letting you know you’ve won a competition, but you can’t remember entering it, you’re most likely being targeted by a prize scam. These can also take the form of lotteries where your name has been “randomly selected”.
They often require you to hand over your bank details for the “winnings” to be deposited into, while in some cases you may also be asked to pay a processing fee. This fee is usually quite large, but pales in comparison to the total winnings.
It’s another case where if it sounds too good to be true, it almost certainly is. Make sure to never share bank details with someone you don’t know.
What to watch for:
Anyone who says you’ve won money when you haven’t entered a contest
A need to pay any upfront fees for the release of your supposed winnings
9. Employment and job scams
If you’ve moved abroad, you may be searching for a new line of work. Scammers exploit this by reaching out to you with fake job postings. In some extreme cases, this might even involve an interview, where you sit down with them on a call, or via a messaging service, and are subject to a fake recruitment process.
The scam exploits you further by asking for a small up front payment to cover the costs of training, equipment, or processing fees. In reality, no job will ever ask you to pay for these things, if they do, it’s advisable to research them thoroughly first.
Report anyone you see who operates like this to job websites and the authorities. The quicker they’re offline, the fewer people they can impact with the scam.
What to watch for:
Cold calls from random people offering you work
Texts, messages, or social media requests out of the blue
Listings where a company has a very low trust rating on job websites
Supposed employers asking you to pay money to them
What are the signs that I’ve been targeted by a scam?
Sometimes you might notice odd behaviour or discrepancies on your bank account. If that’s the case, it could be that you’ve been targeted by a remittance scam. If you spot any of the following signs, you may have been or are being targeted.
Requests for secrecy
Keeping the money transfer a secret from your close friends and family is a sign that a scammer doesn’t want people around you to find out what you’re doing. This is because they know that a third party might spot the signs of a scam and inform you. Always talk through any remittance payments and transfers of large sums of money with people you trust.
Pressure to send money quickly
Anyone who seems desperate or frantic when it comes to money transfers should immediately raise suspicions. You should always be given a set deadline to pay a legitimate fee or bill – and this number is almost always 30 days after receiving any kind of initial contact.
Unfamiliar senders asking for personal or financial information
Banks do sometimes ask for personal info over the phone, but it shouldn’t be happening frequently.If you notice this happening a lot, it could be that you’re being targeted.
Changes to your credit score or report
Checking your credit score regularly can highlight any discrepancies or anomalies which you might not have immediately noticed yourself. This can happen when someone takes out a credit account in your name.
Offers that sound too good to be true
In almost all areas of life, if something sounds too good to be true, it usually is. While not a set rule, this is a smart way to think when someone approaches you out of the blue about an investment scheme or large sum of money you’re allegedly owed.
How can I protect myself from a money transfer scam?
Just as with any online scam, there are steps you can take to make your money safer. Here are some of the most effective things you can do to prevent a scammer from getting access to your money.
Understand who’s contacting you
By verifying the identity of the person who’s contacting you, you’ll be in a much better position to quickly identify a scammer. If they refuse to go on a video call with you, or provide any other kind of personal information about themselves, it’s a sign of a scammer.
Keep an inquisitive mind
It’s always smart to err on the side of caution when it comes to strangers online. A healthy level of suspicion is one of your best lines of defence when it comes to preventing a scammer from snaring you. No legitimate company will be offended by you being cautious.
Keep your personal info secret
By keeping this kind of information to yourself, you’ll greatly reduce the chances of a scammer being able to take advantage of your existing accounts. Always be cautious about what you tell your bank over the phone, especially if the call has come through unsolicited.
Don’t click on emails and links from random sources
Phishing scams have existed for as long as the internet has. It’s always good advice to avoid clicking on links or emails that have been sent to you at random. These can sometimes lead you to pages where you fill in bank or personal details that a scammer can exploit.
Use secure payment methods
Using reliable and protected payment methods online is the safest way to protect your money. That means avoiding things like void wire transfers, prepaid cards, or gift cards, and sticking to traditional options that you’d use for everyday purchases.
Passwords and antivirus software
If you regularly use a digital device, make sure that all passwords are regularly changed and that antivirus software is updated. This makes it much harder for scammers to get access to your devices or financially sensitive online accounts.
What should I do if I think I’m the victim of a money transfer scam?
Sometimes even the best preventative measures can’t stop an attack. If you are the victim of a scam, you’ll be able to take steps to make the situation better. Here are a handful of actions you should take if you know you’ve been targeted.
Cut off all communication
Keeping in contact with a scammer is a guaranteed way to let them continue manipulating you – especially if you’ve been the victim of an attack that targeted your emotions. If you haven’t already handed over any money or personal information, this should be easy. If you have, make a detailed note of their name, email address and any other info for the purposes of potential future investigations. Whatever the case, you should end contact and report them.
Let your bank know
By letting your bank know you’ve been targeted, they’ll be able to freeze your accounts, stopping any further money from being lost. In some cases, they might even be able to retrieve money you sent if you catch it quickly enough. This is not always guaranteed.
Speak to the authorities
Bring as much information as you can to the police or a consumer protection agency. If you live in the UK, you can also send details of what happened to you to Action Fraud. In the US, you should report fraud to the Federal Trade Commission (FTC).
Change all of your passwords
If you suspect your personal information might be breached, it’s wise to change as many passwords as possible. This is especially true if you use the same password across multiple accounts. Make the new password a randomly generated series of numbers and letters, and store it both on your computer and offline on a piece of paper.
The current state of money transfer and remittance scams across the world
Reports have shown that the amount of money being sent overseas or brought back by immigrants is now enough to compete with the GDP of developed nations. In 2023 alone, the World Bank highlighted that $656bn moved across borders in some way – exceeding the GDP of Belgium.
It’s now believed that in more than 60 countries, remittances account for at least 3% of their total GDP. What’s more, the total amount being sent in remittances now also represents a much higher total than what’s being sent in foreign aid. In 2023, that number sat at $228.28bn.
Unsurprisingly, these huge amounts of cash have caught the attention of scammers all across the world. In 2024, estimates from the Global Anti-Scam Alliance found that as much as $1.03tn was stolen by international scammers. It was largely developed nations that saw the biggest amounts being stolen, with the top three countries targeted being:
1. United States – $3,520
(lost per capita)
2. Denmark – $3,067
3. Switzerland – $2,980
But while the figures themselves were higher in these nations, it was often in developing countries where the impact was felt the most. In some nations, the total amount lost to scams accounts for more than 3% of their entire GDP:
1. Pakistan – 4.2%
(of total GDP)
2. Kenya – 3.6%
3. South Africa – 3.4%
By contrast, countries like France, Italy and the Netherlands only saw 0.2% of GDP lost to scams. When it came to attacks per citizen, Brazil (41% of all citizens), Hong Kong (33%), and South Korea (26%) saw the most people targeted. Despite these startling numbers all around the world, it’s believed just 70% of scams ever get reported.
Worryingly for those living abroad, the numbers show that remittance senders are disproportionately affected by financial fraud and scams. A study from 2023 found that across a three year period as many as 29% of people who sent peer-to-peer payments were targeted by a scam. This was high above the average of 8% of people who had been targeted in total in that time.
When it came to where people were most commonly being targeted for scam, social media was by some way the runaway leader. The most common areas saw the following contact methods resulting in monetary losses:
$2.7bn
Social media
$2.7bn
Websites and apps
$1.9bn
Phone calls
$0.9bnn
$0.6bn
Text messages
$0.4bn
Online ads
$0.2bn
Letter mail
Source: ExpressVPN
What is being done to combat remittance scams?
As remittance scams become more commonplace online, banks and other financial institutions are taking extra steps to help prevent crime and protect their clients. These vary from new procedural measures to innovative technologies that can detect and prevent crime before it becomes a factor. Here are some of the most effective tactics they employ:
AI systems
Some groups are now turning to AI and machine learning in order to identify fraudsters before they can profit from unsuspecting victims. These technologies can analyse data in real time, looking for traits and clues that are commonly associated with specific types of scams.
Powers for banks
Banks and other financial institutions all across the UK are also being given more power when it comes to fighting fraud. New rules introduced in late 2024 have given them the opportunity to delay and freeze transactions for up to 72 hours on an account in order to assess suspicious payments. In turn, this gives those targeted a higher chance of getting their money back.
New reimbursement plans
Targeted at protecting your money itself, new levels of protection for victims of some types of money transfer scams were also introduced in the UK in 2024.
Frequently asked questions
We’ve covered a lot in this guide, but you may still have more questions about remittance scams and how they affect you. If that’s the case make sure to check out these useful FAQs.
What should I do if I can’t get my money back?
If you’re not able to immediately get your money back, you can try any of the following options:
Ask the bank to provide evidence of their decision in writing
Speak to the financial ombudsman in the UK who may be able to help your case. Or in the US, speak to the Consumer Federal Protection Bureau, Better Business Bureau, or your state regulator, as they may be able to assist you with filing an official complaint
Reach out to free fraud support services, who should be able to coach you through the next best steps to take. Some good resources to turn to can be found here.
Can Remitly refund me if I’ve sent money to a scammer?
Unfortunately, if you send money to a scammer, it may not be possible to recover the funds. This is why it’s crucial to recognise scams before acting. Consider: do you know your recipient? If you send a transfer to a scammer, Remitly might not be able to help and you could lose your money.
This publication is provided for general information purposes only and is not intended to cover all aspects of the topics discussed herein. This publication is not a substitute for seeking advice from an applicable specialist or professional. The content in this publication does not constitute legal, tax, or other professional advice from Remitly or any of its affiliates and should not be relied upon as such. While we strive to keep our posts up to date and accurate, we cannot represent, warrant or otherwise guarantee that the content is accurate, complete or up to date.