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Receiving a bank wire transfer -- possible fraud?

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  • Jul 30th, 2013 12:13 am
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Deal Addict
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Feb 19, 2005
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Receiving a bank wire transfer -- possible fraud?

Hi all -- don't really know where to post this, but hoping that this is a suitable subforum.

I just sold something online, and since the buyer seemed a tad sketchy (no previous feedback + located in Mexico) I required that he pay via bank wire transfer only instead of Paypal. I forwarded my bank wire details over to him, and within 12 hours, the money was in my bank account, and from what I understand, bank wire transfers aren't reversible, so I should now be technically safe to ship the item to him.

However, I do still have some concerns since it's a ~$1000 item:
1.) In my online bank statement, it says that the deposit was a "Branch Transaction: Credit Memo". I was expecting it to be more specific -- at least, saying who it was by, and that it was specifically a bank wire transfer.
2.) I did some heavy Googling and stumbled across something called "bank account flashing": http://www.fraudwatchers.org/forums/sho ... .php?t=270. Is this actually possible for foreign (e.g., Mexican) senders, or is it a trick that's only applicable domestically?

Thanks!
21 replies
Sr. Member
Feb 28, 2013
945 posts
82 upvotes
Toronto
Yea, can still do fraud internationally like that and now this sketchy guy has your account number, full name, address and other bank details. Yay!
Sr. Member
Sep 6, 2010
789 posts
99 upvotes
Waterloo
Wire transfers do not show up with the sender's information, however you can request for it from the bank. It is interesting though - that it's showing as a branch transaction. I recommend you going into your local branch (home branch if possible) and ask about the details of the transfer.

Quick question, who do you bank with? CIBC and TD definitely would not state that for a wire.
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Feb 19, 2005
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CsG wrote: Wire transfers do not show up with the sender's information, however you can request for it from the bank. It is interesting though - that it's showing as a branch transaction. I recommend you going into your local branch (home branch if possible) and ask about the details of the transfer.

Quick question, who do you bank with? CIBC and TD definitely would not state that for a wire.
This is using CIBC. I will go to my home branch tomorrow during lunch and inquire further :-)

I'm not too worried about my name and address being out there, since it's on my publicly visible resume anyways.
Sr. Member
Sep 6, 2010
789 posts
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Waterloo
akwok wrote: This is using CIBC. I will go to my home branch tomorrow during lunch and inquire further :-)

I'm not too worried about my name and address being out there, since it's on my publicly visible resume anyways.
With CIBC, you would receive some sort of cheque-like receipt in the mail few days after an incoming wire. It's been a few years since my last incoming wire to CIBC, but I'm quite certain it actually states incoming wire.
Deal Addict
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Apr 10, 2010
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"Credit Memo" means it's a wire. I've received wire transfers to my accounts at almost all the major banks and every time they all show "Credit Memo".

Not sure about "Branch Transaction" though.

You can call in and ask whether it's a wire and from whom.
Deal Fanatic
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Nov 23, 2005
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513263337 wrote: "Credit Memo" means it's a wire. I've received wire transfers to my accounts at almost all the major banks and every time they all show "Credit Memo".

Not sure about "Branch Transaction" though.

You can call in and ask whether it's a wire and from whom.
I am with TD and they show "WIRE" when one comes in.
Sr. Member
Sep 6, 2010
789 posts
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Waterloo
emale wrote: Scammers make in branch deposits using the wire info given to them. Its often from a bad check.

Your case might be different, see the below thread on WN.

http://forums.watchnet.com/index.php?t= ... 9245&rid=0
Very possible. Also, it is common for wires to/from US made in the morning be received by end of day - but I have not encountered Mexico to be the same. So within 12 hours is rather fast.
Member
Aug 26, 2008
483 posts
64 upvotes
Vancouver
Technically a wire should be hard funds. There are some super rare cases though where the other party claimed fraud or their account was hacked and they didn't send the wire. In those cases you could have an issue where the sending bank contacts your bank and your bank may reverse the wire (rare) or freeze your account pending investigation.

Some banks have a clearing period for wires - usually the next day. It may show "processing" or may not have detailed info deposit until the next day.

If your bank shows you the "funds available" and doesn't include the wire amount then that means it hasn't cleared.

If you can wait a day, why not?
Buying: Your US Shares (directly held with transfer agent)
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Aug 18, 2008
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mmadness wrote: Technically a wire should be hard funds. There are some super rare cases though where the other party claimed fraud or their account was hacked and they didn't send the wire. In those cases you could have an issue where the sending bank contacts your bank and your bank may reverse the wire (rare) or freeze your account pending investigation.

Some banks have a clearing period for wires - usually the next day. It may show "processing" or may not have detailed info deposit until the next day.

If your bank shows you the "funds available" and doesn't include the wire amount then that means it hasn't cleared.

If you can wait a day, why not?
While CIBC DOES show the 2 difference balances (available & total), it may not tell much if OP has a a cheque release limit that is equal to or greater than $1000 :P
Member
Aug 26, 2008
483 posts
64 upvotes
Vancouver
Akitakara wrote: While CIBC DOES show the 2 difference balances (available & total), it may not tell much if OP has a a cheque release limit that is equal to or greater than $1000 :P
If which case OP should find out what his/her cheque release limit is, and whether or not it affects a wire transfer, right? :)

Probably best to call CIBC the next day and find out.
Buying: Your US Shares (directly held with transfer agent)
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Feb 19, 2005
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So, I went to my local branch and the teller said that he would order a trace on the original payment to get more information about the original transaction. Should take 2-3 days, and hopefully with that information in hand, it should be enough to alleviate any concerns I may have.

The teller did say that a "credit memo" usually means that the funds aren't reversible -- and that's why it's different than just a normal deposit. But he agreed that it's probably better to wait for the trace just to double check.
Newbie
Apr 2, 2013
60 posts
18 upvotes
Fredericton
513263337 wrote: "Credit Memo" means it's a wire. I've received wire transfers to my accounts at almost all the major banks and every time they all show "Credit Memo".

Not sure about "Branch Transaction" though.

You can call in and ask whether it's a wire and from whom.
Branch transaction just means that it was done at the branch level. When a wire comes in it sits in the receiving home branch's system until an employee processes it and forwards the amount into the account holder's bank account via a credit memo.
Deal Fanatic
Jul 1, 2007
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In what bizzarro universe is receiving a wire payment (where you give an anonymous sender all your banking info AND home address) safer than accepting Paypal????
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
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Feb 11, 2009
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Toronto
Thalo wrote: In what bizzarro universe is receiving a wire payment (where you give an anonymous sender all your banking info AND home address) safer than accepting Paypal????
More often than not, once you send the items to a paypal'er they can claim "unauthorized transaction" or "item not received". In terms of wire...I provide my buyers with account info for an empty PC Financial account and my PO Box as address, haven't had problems yet!
Realtor (Investment Properties) - CPA, CA
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Nov 25, 2010
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akwok wrote: So, I went to my local branch and the teller said that he would order a trace on the original payment to get more information about the original transaction. Should take 2-3 days, and hopefully with that information in hand, it should be enough to alleviate any concerns I may have.

The teller did say that a "credit memo" usually means that the funds aren't reversible -- and that's why it's different than just a normal deposit. But he agreed that it's probably better to wait for the trace just to double check.
The eBay buyer may leave a negative eBay feedback because you're delaying his item.
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Aug 18, 2008
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mmadness wrote: If which case OP should find out what his/her cheque release limit is, and whether or not it affects a wire transfer, right? :)

Probably best to call CIBC the next day and find out.
I meant that there's problems if the other party deposited as a cheque, since it would still appear to clear anyways :razz:
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Feb 19, 2005
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SnoopDop wrote: The eBay buyer may leave a negative eBay feedback because you're delaying his item.
The guy sent the money without purchasing it on eBay (since I only allowed shipping to Canada/US in the auction, so he couldn't actually commit). So I closed the auction, and now it's completely offline.

Technically I could just hold onto the money forever without shipping anything since there's no written contract, but morally and ethically that is a no go.

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