Money Laundering Scams and How to Avoid Them

Some Money Laundering Scams Across the Internet: Don’t Fall for Them!

If you come across job listings that ask you to pay or do money transfers for your employer, it signifies a money-laundering scam. The job sounds very easy, but it is just a façade to lure you into their scam. These kinds of fake jobs are never safe to do, so you should always be careful before believing it is a real job. Legitimate companies handle credit cards, payments, and transfers online. They do not need to involve a third party, and never use your account to do financial business for your employer.

So without further ado, here are some money laundering scams you need to be aware of:

#1 Paying in Advance Scams

Money launderers will make a large order and make an advance payment. Later on, they are going to cancel it and demand a refund. Most of their money will be returned to them, and less the cancellation charge. They will show paperwork showing their cash is in their bank account, and it is from a legitimate business transaction. That is fake.

You should train your employees to be wary of signs that show suspicious activity like large cash payments or orders that are not sensible. For instance, a transaction that is hard to see how the buyer makes a profit.

#2 Online Relationship Scam

You will meet someone from a long distance, and they seem to be excellent. You both get along and hit it off right away. The person will soon ask you to send them money via wire transfer, or you will receive money. They can even ask you to send money somewhere else. The reason they give you for asking you to do it sounds reasonable, like for visas, plane ticket, bills, medical expenses, etc. These are all lies, and you will start to suspect as well.

It would be best if you stopped communicating with the person right away. This is a sure sign of a money-laundering scam. Report them right away, and stay away from being embroiled in a financial crime.Money Laundering Scams and How to Avoid Them

#3 Promise of Quick Money

This scam could start as a phone call, message, or an unsolicited email that tells you about a job that requires very little work but offers a very high payment.

Criminals that practice this scam normally target people who are looking for a job or want to work online from home. Once your job is secured, you will be asked to fill out paperwork asking for your address, social security number, and bank information so they can deposit your paycheck. They can use the information you gave to access financial accounts you have.

Sometimes, you might not know that you are taking part in a money-laundering scam in your new job.

When you are looking for a job, only use popular and credible job sites, check the employer’s background, and not apply to jobs that sound too good.

#4 Honest Face Hoax

The scammers have a legitimate business, which lets them clean cash by mixing it with their earnings from the company’s legitimate activity. If the firm is honest, they might end up in business with a money laundering company. They could be a supplier or customer, which leads to damage if it gets discovered.

The best way to avoid this is to be diligent with your suppliers and customers. One sign could be that the company offers a lot better prices and terms and conditions than the normal.

#5 You Won a Money Prize

Out of nowhere, you will be told that you won a prize or the lottery. To ensure your prize, you will be asked to wire money, pay for shipping and handling fees, or improve your winning chances. They might ask for your credit card or bank account information. It would be best if you never did it. This scam is a classic one, and it has been viral.

It is a crime to be part of any foreign lotteries. If the sweepstakes or lottery company is legitimate, they will never ask for your personal information, mostly financial. These too good to be true prizes are rarely real, and they will only try to scam you. Also, real prizes do not ask for anything in return, especially money.

Stay Vigilant and Alert

Money laundering scams are very rampant, and you should always have your guard when doing anything related to money. It is common to find business news about money laundering scams, and you can easily research them because these fraudsters never stop.