Wire Fraud is becoming increasingly prevalent. Most importantly, real estate buyers and sellers are being targeted and many have lost thousands of dollars.
Wire Fraud is a type of fraud that involves the use of telecommunications or the internet. The most common form of wire fraud in Real Estate is Mortgage wire fraud. This is a scam in which a hacker poses as your real estate agent and convinces you to divert your closing costs to a fraudulent account. Meanwhile, real estate transactions have gone mostly digital as COVID-19 disrupted the business. Consequently, this has given fraudsters an opportunity to steal money from people online.
What is Phishing?
Hackers often begin the wire fraud process with a technique known as phishing. Phishing is a cyber attack that uses disguised email as a weapon. The goal is to obtain sensitive information or data, such as usernames, passwords, and credit card details, or other sensitive details, by impersonating oneself as a trustworthy entity. Once the hackers gain access to an email account, they can steal information and use that in fraudulent emails. These emails contain wire transfer instructions disguised to appear as if they came from a Real Estate professional the buyer is working with.
If you are buying a home and receive an email with wire instructions for your mortgage closing, verify that the email is from your real estate professional or title company. Remember to obtain the phone number of your real estate and escrow agents at your first meeting. Call the trusted phone number to speak directly with your agent or escrow officer to confirm wire instructions PRIOR to wiring.
As Wire Fraud is becoming increasingly prevalent, here are tips to protect yourself:
- Confirm all transactions in person or by phone with a trusted number before transferring funds.
- Never email your financial information.
- If you’re sending your financial information online, make sure the site is correct and secure.
- Be careful when opening attachments and downloading files from emails.
- Always keep your operating system, browser, and antivirus software up-to-date.
Here are more important tips from C.A.R.:
Key Takeaways
To sum up, it’s easy to fall victim to hackers, phishing scams, and other online traps. Therefore, always verify the authenticity of each wire transfer request. Instead of clicking a link in an email, look up the official website and type in the address yourself. Moreover, files sent online may contain malware that can breach your computer’s security. Monitor your email account for unrecognized activities. Finally, contact your financial institution immediately upon discovering fraudulent transactions. File a complaint at www.ic3.gov