I had the same issue. I was potentially doing an import business and they "buyer" wanted to use the same terms. I heard of SWIFT but never MT etc....We had a proposal to receive funds for investment via MT103 and MT202. The sum is large. Is it safe to receive such payments via SWIFT? How can we protect ourselves? Where is the catch?
'hidden' scam? check my postbelieve this is a "hidden" scam which not many know about, even better some posted about here.
Stupid question: how can someone recall a wire ? I didn't know that was possible. I thought a wire transfer is confirmed or sent it can't not be retrieved? I apologize for my ignorance..I wasted so much time with MT103 scams. Basically these transactions in some banks appear as deposited but later on can be cancelled.
I would like to know that too. I had it happen multiple times that someone tried to "recall" the wire. Request to refund the wire was sent to my bank and bank asked me whether I agree to refund it or not. If I did not agree then bank would freeze funds from the transfer for some time, ask me for details about the transactions and eventually unfreeze the funds.Stupid question: how can someone recall a wire ? I didn't know that was possible. I thought a wire transfer is confirmed or sent it can't not be retrieved? I apologize for my ignorance..
I wasted so much time with MT103 scams. Basically these transactions in some banks appear as deposited but later on can be cancelled.
InterestingUnfortunately, lots of misleading information here - I see that almost no one understands something in how a money transfer works.
your former banker speaking.
let's talk about "money transfer"
1. You are sending money from country x to y and one of this country is not from the E.U, then the wire is sent by SWIFT. The swift message type used to transfer money is an MT103.
2. You are sending money from country x to y and both countries are inside the U.E? then the money transfer is made by SEPA. outside of the SWIFT messaging system
3. You are sending money from the U.S, inside the U.S? then you have two options: 1. ACH (takes 3 days to arrive) - 2. Wire (should arrive same day)
4. There used to be another way called T/T (telegraphic transfer) in the past (the grandfather of SWIFT) - still used in east Asia but tends to disappear.
basically, every time you guys are sending money as described in point 1, your bank is sending a message swift type MT103 - are you all scammers? well I don't think so.
by the way, respectable banks provide you a copy of the MT103 they sent. it shows the sender, the receiver, the currency, the amount, the value date, the beneficiary, the corresponding bank used etc...ask your bank for the MT103 copy next time you send a payment to someone !
In any case, talking about scam when someone mentions MT103 is funny... then all bank's employee should be in jail!
now, let's talk about recalling a wire.
Technically, a bank that issued a payment, can ask the receiving bank to return the wire. they can ASK. they can't take it back on their own.
imagine one second the number of people that would recall their wire. the all system of sending money would collapse:
I am sending you US$ 10,000.00 - you are shipping my products and hop ! I am recalling the wire. no... please... does not make any sense.
Recalling a wire is a procedure that most bank will not do, why ? simple.
why would a bank recall a wire ?
1. just because you changed your mind ? no, they will not do it. it's enough for them to start this procedure
2. because the information you provided had a mistake ? (beneficiary's name, beneficiary's bank account number?) they will not recall the wire. they will wait for the receiving bank to return it. in any case, this money will not show in the beneficiary's bank account, the receiving bank will return it without crediting the beneficiary's bank account.
3. you made a mistake in the amount ? you wired 10,000 instead of 1,000 ? well, they could start a recall procedure but it would need to be accepted by the beneficiary. this kind of mistake are very unlikely to happened as you have several lawyer of validation when making a wire.
4. the banker's made a mistake ? yes, they will start a recall procedure, but again it must be approved by the beneficiary and the beneficiary's bank. It's very unlikely that a banker will make a mistake.
I hope these technical explanation makes it clearer in your minds.
someone even mentioned MT760 as a scam. an MT760 is a bank guarantee or a Standby letter of credit. it's used as a collateral or in trade finance transaction. why would this be a scam? it's dedicated to people involved in import/export business.
it's better not throwing the word scam after any concept we don't know/don't understand.
now, regarding the scam part.
people turn anything into a scam. paying by credit card can be a scam, paying by cash can be a scam... buying a counterfeit product, buying a defective car, contracting someone to do renovation in your house can be a scam... absolutely anything can be turned into a scam.
Why would someone send you millions of dollar for no reason? Especially someone you ‘met’ online ? why would you receive money from someone, keep a cut and wire the money somewhere else?
Common sense should always be leading your mind.
A client offers you to pay by mt103 ? then why not ? he’s offering to pay by money transfer. let him initiate the wire, see the money in your account. double check with your bank that money is in, calling them if you want to. once you see money then do the work you were paid for.
Someone is asking you to send money for him to send you money after? then it's obviously some bulls**t scam... why would you pay someone first that wants to pay you? Stay away and don't do it. common sense... always.
also, ppl offering crazy amounts, often, higher than their country's GDP... stay away.
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