Western Union and Telegraphic Transfers

April 2008 - URGENT UPDATE - SEE NEW WESTERN UNION SCAM BELOW

Telegraphic Transfer is a known and trusted means of securely transferring funds between bank accounts worldwide. It is so secure, traceable and accountable when transferring between major banks that it is the method of choice in property purchases. Both sender and recipient have to be completely recognised according to a firm set of International Banking rules. Money Laundering regulations also apply and 'Know Your Customer' rules are rigorously applied to both Sender and Recipient.

A Western Union or Moneygram transfer is an entirely different method and should NOT be regarded in the same light. Western Union is a well-regarded means of transferring money to distant locations BUT is in no way traceable or accountable. The system was developed to expedite transfer of funds between friends, relatives or trusted recipients ONLY. Western Union themselves say on their website that "the service a great way to send money to someone you know and trust but if you need to send money to someone you don't know well you may be putting yourself at risk of fraud."

It does not require proof of identity but uses a 'pre-established code' to prove the rights to the funds. Although the transfer is secure in terms of ensuring that the money will be transferred, it is not an intrinsically secure transfer method for the SENDER as it does not guarantee that no-one else can intercept the funds. In reality, anyone with the requisite recipient information can claim the funds as cash and vanish!

This is the reason it is the transfer method of choice for frauds. Any money transferred by Western Union or Moneygram can vanish literally without trace. The only known means of checking the identity of the person drawing the funds is to contact Western Union to see whether the branch had a CCTV record which could be passed to local police. It may not help with you own personal case but it could build up a picture (literally) of the gang.

Never, never, never send money to someone you are not 110% sure of by Western Union or Moneygram!

It's not Western Union's fault. It's just the way the system works.

URGENT UPDATE - April 2008.

Fraudsters are now using a variant Western Union scam to defraud victims. The discussion Forums of large international classified advertising sites are filled with complaints about this form of the Western Union fraud.

Most frequently targeting flat rental sites, the victim is asked to prove that they have access to sufficient funds to cover a period of rental by transferring the amount NOT TO THE SCAMMER BUT TO A FRIEND/RELATIVE. The scammer explains that this is perfectly safe as they have no access to the funds but only require a fax copy of the receipt to be assured that the renter can afford the rent. Victims are reassured because the transfer is to a relative or friend.

Unfortunately, the details on the receipt are sufficient to get a remote Western Union office to release the funds with only a (false) signature required! At one time it was thought that such low level of proof was only for sums below £500 but recently sums in excess of £1000 have been taken in this way.

Now that faxes are not as widespread as they once were, a variant now being used is simply for the fraudster to ask for information from the transaction. They normally ask for:

MTCN (Money Transfer Control Number)
Sender's name (and optionally address)
Recipient's name (and optionally address) (NOTE. This is often written as 'receivers name' and frequently misspelt as 'recievers'.)

The fraudster explains that this is only required to be able to go to their local Western Union office to check that the transaction is valid and has really taken place.

The fraudster then does go to his/her nearest Western Union anywhere in the world, not to check the transaction but in order to remove the money! The fraudster claims to be the recipient (and can prove it with an address,) quotes the MTCN and the amount. This is considered sufficient proof and the money is handed over with a (false) signature taken for the receipt!

Cases have been documented where the signature has been shown as completely unlike the real recipient and completely geographically distant from where the real recipient is, but Western Union have denied any responsibility for the loss.

To repeat the previous advice: "Never, never, never send money to someone you are not 110% sure of by Western Union or Moneygram!" but now we have to add "And even if it is a relative, NEVER let anyone else know that the transfer has even taken place!"

Other insecure transfer methods.

E-Currency services are a means of holding and transferring assets as offshore Gold or Currency accounts. They also offer a means of accepting funds from 'non-repudiable' transfers. A 'non-repudiable' transfer is one which cannot be reversed once fulfilled (such as Western Union.)

The problem with this is that some services offer anonymous (Genuine) e-currency debit cards, meaning that funds can be withdrawn anywhere at any time! In one case NO ID WHATSOEVER is needed to set up the card and it can be funded by an e-gold or Western Union transfer. The person drawing or spending the funds is absolutely anonymous and can be anywhere in the world. Most importantly they do not have to visit an office to get hold of the funds.

Examples of e-currency services include: e-gold, eBullion, Evocash, Webmoney, INTgold, GoldMoney, pecunix, NetPay, and E-Dinar. These are legitimate businesses but their services can be used anonymously and unrecoverably for fraudulent purposes.
Beware any request for payment to be made into an e-currency or e-gold account.