How to protect yourself from wire fraud
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Scams involving false wire transfers are on the rise in the U.S. and worldwide. The large amounts of money involved before a closing make real estate a popular target with scammers. Heads up: the money wired during a scam is typically unrecoverable.
How does wire fraud happen?
A buyer receives an email from their real estate agent or title company with instructions about how to wire the money. In the case of a scam, those instructions have been altered. The buyer transfers the money and later learns that the title company never received it.
On the seller side, the title company receives a request sent from the seller’s email, asking the title company to wire money to a different account than the one on file. The money is wired and the title company later learns that the request was not valid. The funds are gone.
How do hackers get their information?
Hackers monitor emails and use MLS services and public records to track information about online transactions. The hacker sends an email requesting a change in the wiring instructions. Most consumers believe the change is coming from a valid source. The email looks legitimate and appears copasetic – but it’s not.
7 ways to protect yourself from wire fraud
1. Early on, establish how your agent will be communicating with you throughout the transaction. Confirm how other parties, like the title company, will contact you.
2. Verify that your agent will never ask you to send sensitive information via regular email.
3. Ask your agent and title company to send wiring instructions via secured email.
4. Prior to wiring funds, contact the recipient of the wire and confirm that the wire information, including the phone number, is correct.
5. Do not open suspicious emails. If you happen to open one, do not click on any links, open any attachments, or send a reply.
6. Change your user names and passwords frequently; never use easy-to-guess passwords
7. Install anti-virus technologies and an up-to-date firewall on your computer.
At The Bradley Group, we keep our clients informed about best practices and follow the guidelines to ensure secure wire transfers. If you have questions, please give us a call. A special thanks to the professionals at Land Title Guarantee Company who supplied information for this newsletter.