As part of their consumer guide series, the National Association of REALTORS® provides information on a variety of real estate topics. A recent release focused on “How to Protect Against Real Estate Wire Fraud”.
Wire fraud is a scam using electronic communications to divert money to the bank accounts of cybercriminals. Cybercriminals target the participants in a real estate transaction, including buyers, sellers, real estate attorneys, title companies, and real estate brokers and agents. These scammers hack into email accounts, monitor the progress of the transaction, and wait for just the right moment when the transfer of funds is necessary for the closing. Then, they send the buyer an email with a change in payment type (from check to wire transfer) or a change from one bank account to the cybercriminal’s account.
How can you protect yourself against wire fraud?
• Be Informed: At the beginning of the homebuying process, talk with your real estate agent about each step — including all transfers.
• Verifying wire instructions: If possible, get wiring instructions from the fund recipient in person. If the instructions are received through a different method, confirm in person or through a phone call with the recipient using a trusted phone number.
• Be suspicious of last-minute changes by email or voicemail: Title companies and lenders have processes in place that shouldn’t suddenly change. Examine any last-minute change or request for information carefully.
• Call a trusted source before and after you wire funds: When you are responding to legitimate funding instructions, call to confirm receipt of funds immediately using a known number.
• Act fast if you suspect fraud: If, despite your best efforts, you suspect you’ve been a victim of wire fraud, contact your bank to try to stop the fund transfer and report it immediately to the FBI’s Internet Crime Compliant Center (IC3).
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
