Real estate fraud seems to be a steady threat to the industry. The scams can come in many different forms, but wire fraud is often a go-to tactic because it is quick — and it cannot be reversed.
By simply changing the account number, an earnest deposit or even a full cash payment can go straight into the wrong hands. Unfortunately, once a wire transfer is sent, it often cannot be reversed. This can be devastating for everyone involved, especially the buyer.
Know how to identify and protect yourself against wire fraud in real estate transactions so that it doesn’t happen to you.
Wire Fraud: How to Spot It
Scammers are sneaky, but if you know what you are looking for, it is possible to stop real estate wire fraud before it happens.
Last Minute, Urgent Changes
Fraudsters don’t want to give you time to think. They want to catch you off guard and get you to react swiftly. Getting a phone call or email requesting changes to your wire transfer instructions is a red flag. While this can happen during the regular course of business, it is not overly common.
What’s more, being pressured to make the change quickly without verifying is never a good sign.
Unfamiliar Caller
Unknown callers should grab your attention. These are individuals you have not communicated with before and may claim to be part of an organization that is involved in the real estate transaction. If they are reaching out to get you to change wire instructions or adjust various bank details, do not proceed without looking into it further.
Suspicious Emails
Emails can come from a fraudster, either trying to get access to confidential information concerning the sale or to get you to make changes as if they are a legit person in the transaction.
How do you know if an email is part of a scam? Even if it looks real, pay attention. For instance, look for weird language and grammatical errors as these are usually common with fake emails. And be sure to pay attention to the actual email address of the sender, not just the name listed because there is a good chance they won’t match.
Protecting Yourself From Wire Fraud
You cannot simply keep an eye out for potential wire fraud, you have to take steps to protect yourself from it. Here are a few ways you can do that.
Be Weary of Emails
Email phishing can give fraudsters access to confidential information by getting you to reply with the information they are looking for, or via links and attachments. The latter two may either ask you to update personal information about the transaction, including wire instructions, or infiltrate your software with a virus to get it themselves.
Remember, even if you know the name of the sender, always thoroughly check the email carefully and confirm the email address before doing anything else.
Verify, Verify, Verify
Perhaps the most important way you can protect yourself from wire fraud is to verify everything. If you get wire instructions from a phone call or email or feel as though you are being pressured to act fast, don’t. Always verify the information first.
Use the contact information you have on file to make that verification. Do not reply to emails or dial numbers listed in emails or on websites linked to the email. Scammers can go to great lengths to get you to believe they are real — so prove them wrong.
Protect Your Real Estate Transaction with Buchanan Settlement Services
Buchanan Settlement Services and its title agents take steps to secure transactions to prevent wire transfer fraud. Want to learn how we do it? Contact us today.
Comments