What to Do If You Transfer Money to the Wrong Person

transfer money

In today’s world, it’s common and cleaner to use digital payments instead of cash. Bank transfers and apps like PayNow make sending and receiving money quick and safe. PayNow lets you transfer money using phone or NRIC numbers, and it’s popular, with millions already using it.

But sometimes mistakes happen when transferring money. One common mistake is typing in the wrong phone or account number, and sending money to the wrong person.

Fixing this mistake can be tricky, but it’s possible. There are rules in place to protect users from these errors, like the E-Payments User Protection Guidelines from the Monetary Authority of Singapore (MAS). These guidelines help users and banks deal with mistakes and keep transactions safe.

This version retains the key information while simplifying the language for easier understanding. Let me know if you need further assistance!

If you transfer money to the wrong person, here’s what you should do:

Get in touch with your bank or financial company

Contact your bank immediately if the person you gave money to doesn’t respond or can’t help you. They’ll make contact on behalf of you.

Banks will ask you to fill out forms to request the return of the money. When you report the issue to your bank, you’ll need to give them specific details, as outlined in the MAS E-Payments User Protection Guidelines.

When reporting the wrong transaction, you need to tell your bank:

  • Your account is affected.
  • Your personal identification.
  • How you made the transaction (like using a password or card).
  • If anyone else uses your account.
  • Details about the person you sent money to (like their account number).
  • When, how much, and why the mistake happened?

As per the guidelines, banks need to try their best to get back the wrongly sent money. This includes:

  • Tell the recipient’s bank about the mistake within 2 business days.
  • Check with the recipient’s bank for their response within 7 business days.
  • Let the account holder know about any new info so they can decide if they need to report it to the police.

If the person you sent money to lives in another country, or if you didn’t have enough information when you reported the mistake, it might take longer to fix.

While banks will make every effort to return your money, it may take some time. Reversing a transaction requires the approval of the other party, sometimes people don’t check their accounts regularly therefore it may take some time for them to notice and return the money.

Contact the person directly

If you know the person well to whom you transfer money then you could request the person to refund the money. Yet, it’s challenging if you don’t know them well, as they might believe it to be a scam. Don’t put any pressure on them to return the money either.

transfer money

Get legal help

You can report it to the police if the person refuses to give back the money. Keeping money that isn’t legally yours is against the law, especially if you are aware that it was sent to you by mistake.

A driver was sentenced to jail in 2019 for misusing money that was mistakenly sent to him. A business was intended to pay him, but they accidentally sent him the money. The fact that he utilized it for personal expenses is illegal.

What to Do If You Get Money by Mistake

If you get money from an unknown source, get in touch with your bank as soon as possible to find out where it came from and request a return of the funds. To transfer money back, contact the sender immediately if you know who sent it.

It’s best to let the banks handle it if you don’t know who sent it. However, if the money wasn’t meant for you, don’t keep it or spend it.

Be careful when Transfer money

Be careful when transferring money to someone else to prevent making this costly error. Check the information with the person who receives it before sending it. Also, before transferring money, make sure to confirm the amount and the bank account or phone number.

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