Wire fraud is one of the fastest growing cybercrimes in the country.
According to the Federal Trade Commission, consumers reported losing
$1.48 billion to fraud in 2018; that's an increase of 38% over 2017.
Wire fraud is any event where an individual is tricked into sending
money via wire transfer to a fraudster. Wire fraud includes imposter
scams, debt collection schemes and identity theft.
Real estate transactions can also be a target for wire transfer fraud.
These transactions often include multiple parties, buyer, seller, real
estate agents, mortgage lenders, and title, closing and settlement
agents. Fraudsters can use online real estate shopping tools to seek out
transactions getting ready to close, hack into an unsecure email account
for one of the individuals involved in the transaction and use that
information to send wire transfer details to unsuspecting buyers. When
obtaining title insurance, be sure you are aware of your transactions.
Consumers and professionals in the industry need to be privy to these
types of schemes so they don't fall victim.
The NAIC offers these tips to help keep you protected.
At the beginning of your transaction make sure to obtain contact name,
e-mail and phone numbers for your real estate agent, lender, title
insurer and closing and settlement agent, if separate. Only use these
numbers and email addresses when communicating with the individuals
during the transaction.
Make sure you use two-factor authentication on your own email account
and encourage other individuals included in the transaction to do so
Wire instructions will come from your title/closing agent before your
transaction is set to close. As a buyer, be sure to verify the wire
instructions with the title/closing agent by calling them directly or
discussing it in person. Email accounts can be compromised so be sure
to verify the information you receive through direct communication.
Be aware of any email or correspondence that asks you to respond
IMMEDIATELY or RUSH. Title companies will not ask for a wire transfer
in that way. Be VERY suspicious of any communication saying that wire
transfer details have been updated.
Always confirm receipt of the wire transfer a few hours after the wire
was transmitted to ensure it successfully went through to the right
To determine if your title insurer is licensed and in good standing,
check with your state insurance department.
Becoming a victim to fraud can be a financially devastating blow to
consumers and agents. Be vigilant when it comes to wire transfers;
verify and reverify the information from trusted sources.