Real estate wire fraud has surged in recent years with some estimating a 480 percent crime increase in 2016. Buyers need to be aware of scammers and phishing schemes that can lead to their funds ending up in the wrong hands.
More so than ever, it is dire to be educated and educate others of the potential risks and how to avoid them.
Here are some tips to avoid wire fraud and to ensure a smooth transfer of funds when making a real estate transaction:
- Be informed of the transfer of money protocol during the closing process. If there are any questions regarding the timeline or wiring instructions, they should be addressed by the real estate or settlement agent.
- Emails received requesting money for closing, even if it’s from a familiar source, should be a RED FLAG. Always contact the real estate or settlement agent (via phone) to confirm.
- Be extremely cautious about emailing financial information; avoid it if possible.
- Beware of opening attachments, clicking links and downloading files from emails; always check the email address, not just the name of the sender.
- If a message is marked urgent, rush or confidential and is asking for quick action, it is more than likely a scam aimed at the recipient to make a rash transfer of funds.
- Ask your bank to help identify any potential problems before sending any wire transfers.
- Confirm receipt of the wire transfer by your real estate or settlement agent a few hours after the wire was transmitted.
- Make sure your anti-virus software is up to date, and your email is protected with strong and unique passwords.
- If for any reason you think you have been a victim of financial fraud, contact your bank immediately, and file a complaint with the FBI’s Internet Crime Complaint Center at www.ic3.gov.
You can never be too careful, so stay vigilant and aware at all times, especially during the home buying process.
