Wire Fraud Scams in Real Estate: What You Need to Know
Buying or selling a home is an exciting journey, but there’s a growing risk you need to be aware of: Wire Fraud.
Wire fraud is real and it’s on the rise, with potential losses exceeding $12.5 billion.
That’s a scary statistic!!!!
Source: https://www.ic3.gov/PSA/2024/PSA240318
This wire fraud scam targets real estate transactions, especially during the closing process when large sums of money are involved.
Protect yourself from this sneaky, could be devastating, crime.
What is Wire Fraud?
Wire fraud happens when a scammer tricks you into sending money to a fraudulent account. They often hack into email systems, monitor real estate communications, and then swoop in at the last minute with fake wiring instructions that look almost identical to those from your real estate agent, title company, or lender. Once the money is wired to the wrong account, it’s extremely difficult to recover.
How to Spot Red Flags
- Last-Minute Changes: Be suspicious of any last-minute changes to wiring instructions, especially if they come through email.
- Urgent Requests: Scammers thrive on urgency. If you feel pressured to send money quickly, take a step back.
- Odd Email Addresses: Look closely at email addresses. A single letter off, or emails coming from generic domains like Gmail or Yahoo, can be a sign of fraud.
- Unencrypted Communication: Wiring instructions sent via unencrypted email are a major red flag. Legitimate companies use secure communication methods.
How to Protect Yourself
- Always Verify Before Sending Money: Before you wire any funds, call your real estate agent or the title company directly using a trusted phone number (not the one in the email) to confirm the instructions.
- Be Cautious with Email: Avoid sending sensitive information like wiring instructions through email. Ask for secure alternatives.
- Secure Your Email Account: Use strong, unique passwords and enable two-factor authentication to protect your personal information.
- Trust Your Instincts: If something feels off, don’t ignore it. Double-check with your agent.
What to Do If You Get Scammed
If you think you’ve fallen victim to wire fraud, act fast:
- Call Your Bank ASAP: Ask them to recall the wire transfer immediately.
- Report It: File a report with the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov and the Texas Attorney General’s Office.
- Notify Your Real Estate Team: Let your agent and title company know so they can help you take further action.
Stay Protected
I’m committed to keeping your real estate journey as safe as possible. If you have any questions or concerns, I’m always here to help. Let’s make sure your dream home doesn’t turn into a nightmare!
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