Email scams are nothing new, and we've all seen them. But, would you expect that an email coming from the closing agency, real estate agency, or your real estate agent might really be from cyber criminals trying to trick you into wiring closing funds to an offshore account?
If you are involved in a real estate transaction, or plan to be in the near future, and you are not already aware of the issue, then you should read this.
Reports by The Washington Post, The Chicago Tribune and New York Real Estate News all identify cases where buyers, believing they were in communication with authorized parties, wired large sums of closing funds to accounts linked to parties with criminal motives, and were left with no money to complete their purchase.
Warnings to consumers have been issued by the National Association of REALTORS® as well as the Federal Trade Commission, as the criminal activity continues.
Who is targeted, how are the criminals operating, and what can you do to make sure it doesn't happen to you?
Criminals are targeting all parties involved in a real estate transaction. These criminals will hack the email account of your agent or the settlement services company, or other trusted partners in the real estate transaction process. The hackers then monitor communications so they know when the closing on a home is scheduled to take place. Then, right before the closing, they send an email from the hacked account, that looks and sounds official, providing instructions to wire the closing funds to an unauthorized account.
What can you do about it?
Never trust wiring instructions sent via email. Cyber criminals are hacking email accounts and sending emails with fake wiring instructions. These emails are convincing and sophisticated. Always independently confirm wiring instructions in person or via a telephone call to a trusted and verified phone number. Never wire money without double-checking that the wiring instructions are correct.
Another important recommendation is to try to reduce or eliminate the sharing of personal information, particularly financial data, via email. If possible, try to exchange this kind of sensitive material by phone or in person.
- Annette DePalmo's blog
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All information is believed to be reliable, but is not guaranteed and should be independently verified with a real estate professional. CENTURY 21 Lakeside Realty Is a member of the National Association of REALTORS® Equal Housing Opportunity.