Protect your Clients from Becoming Wire Fraud VictimsBy Mike Volin, VP Legal at Title Resource Group
Each day seems to bring another real estate wire fraud theft of buyer’s funds. Criminals are targeting the real estate industry, not only because there is presumably a lot of money there, but because buyers are generally less familiar with the scams.
No defense is foolproof, but you can take some simple steps to protect yourself and your clients:
The basics of a buyer-targeted scam are simple. A criminal accesses someone’s email, either the buyer or seller or one of the real estate professionals. The criminal then waits for the right time to send an email to the buyer pretending to be the closer or real estate agent. The email address will look legitimate but will have a minor change. The email might ask for money early, or for only part of the funds needed. It will likely be “re-sending” wire instructions, or state they had to change the instructions because of a bank issue. Buyer education is the key to avoiding a scam. Tell your buyers how the scam works. Tell them to call the closer before sending money, to verify the instructions. The buyers should not rely on a phone number in an email. They should get a valid phone number early in the transaction. Have the buyers call the closer after sending the funds, to confirm it got there. If your buyer becomes a victim, the FBI recommends:
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