Over the years, you faithfully put money into your savings. Or you managed to make a hefty profit on your recent Jersey Shore home sale. You plan on buying a new Downbeach property. After weeks of searching, you found “the one”. The seller accepted your offer and now you enter escrow. At some point, you need to hand over your downpayment and closing costs to the title or escrow company in order to complete your home sale. In today’s online universe, that may mean a wire transfer. You receive an email from your agent, lender, or title company instructing you on how to transfer that money. After following their careful directions, your money leaves your account and gets transferred to the one in the email. You contact the entity you thought sent the email only to find out that not only did they never send you that email, but now your money has been stolen. You have become the victim of wire fraud.
Beware of Wire Fraud in Real Estate
The FBI’s 2020 Internet Crime Report stated that cyber-criminals targeted real estate wire transfers in over 13,600 cases last year. They hack into business email accounts of companies who deal with real estate transactions through phishing scams. They send an official-sounding email to an unsuspecting victim. In this email, they may request that the recipient click on a link or download an attachment. When the recipient does, it allows the scammer to infiltrate their email. Once there, they may “sit” on the account, waiting for anything resembling a wire transfer request. Then, they hijack the info, create a “spoof” account, email the person who must transfer the money, and direct them to transfer the money to a different account. These criminals may also call you posing as someone from the office of your agent, lender, or title company. They may even spoof the phone number to make it appear that is coming from their office. But if this all looks legit, how can you tell the legitimate agencies from the criminals?
How to Protect Yourself Against Wire Fraud
Maintain a Current List of Contacts
A real estate transaction includes many parties. Unfortunately, this can make it easier for a criminal to infiltrate the system. Keep a list of all legitimate parties that you can refer to when needed. If you receive an email from a person not on that list, contact your real estate agent directly. Never respond to an email until you verify its legitimacy first. And never click on a link or download an attachment from someone you do not know or an email you were not expecting, even if it looks like it came from a legitimate source. This includes credit card companies, banks, and even personal correspondence outside of the real estate world.
Call Before You Wire Money
Before you make any wire transfers, talk to your contact at the company beforehand (usually the title or escrow company) to go over the proper instructions. Make sure to verify the name of the bank receiving the transfer, the account information, and the exact amount needed for the transfer. Never contact the name or number listed in the email if it does not match your contact list.
Beware of “URGENT” Emails
Your agent should explain to you what to expect throughout the closing process. Watch out for emails marked “urgent” that make last-minute changes to the closing process. Yes, sometimes these last-minute changes happen. But before you do anything, (again) talk to your agent first.
Keep Financial Info to Yourself
When you filled out a mortgage application, you gave your lender your financial information. They have it on file and do not need it from you again. Never volunteer this information over email or via the phone. The person you talk to may actually be a scammer. If you receive a phone call or email from someone, call the company they say they are from directly (from your contact list) and ask them if the phone call they received is legitimate. Then you can provide whatever information they need.
If you find yourself the victim of wire fraud, visit the FBI’s Internet Crime Complaint Center to find out how and where to file an official complaint.
Sherri Lilienfeld, Apex Prime Realty, Your Source for Jersey Shore Real Estate