Email-based scams are increasingly derailing real estate transactions and the lives of those who fall prey. Agents and brokers regularly remind their clients to safeguard their information, and educate them on the signs of a fraudulent email.
Even industry executives, however, can be vulnerable.
Shark Tank’s Barbara Corcoran, mega investor and founder of The Corcoran Group, recently lost nearly $400,000 to a phishing scam. The fraud originated via an email invoice to Corcoran’s financial team, seemingly sent by her assistant. The invoice for $388,700.11 requested payment to German company FHH Concept, according to several sources.
Corcoran’s team requested more information, asking what account they should pay from and what the payment was going towards, receiving a detailed explanation from the “assistant” that they deemed satisfactory. The assistant’s email address, however, was actually fraudulent—Corcoran’s team realized too late it was missing an “o.”
“This morning I wired $388,000 into a false bank account in Asia,” Corcoran told ABC News. “When she showed me the emails that went back and forth with the false address, I realized immediately it’s something I would have fallen for if I had seen the emails.
“Someone sends you a bill. It’s paid,” Corcoran said. “And this one instance, it was not a good strategy.”
How can real estate professionals and clients protect themselves from phishing scams? There are several things to look for, including unfamiliar email addresses, incorrect phone numbers or addresses in the email signature, requests to transact via email, and spelling and grammar errors.
USA.gov has a list of the latest scams and instructions on how to report them.
Find more information on cyber security and real estate scams at RISMedia.com.
With the cyber technology world we live in now, this is becoming all too common. Social Engineering is a dark web industry all in itself. It’s easy to fall prey to this type ordeal and even the most savvy users can get snared. For each cyber security wall that gets created cyber criminals are one step ahead and we are at the point in our business lives wherein we need cyber detection and prevention departments. I’ve got the greatest respect for Barbara Corcoran and I trust her team leadership has a plan in place to prevent future occurances.
This seems too common. We need some protection from this type of scam. Would seem that the banks could create some method to verify that the money is being sent to a valid account.
It is being sent to a valid account. What is needed by the banks is a way to reverse the transaction when it is discovered that it’s a fraudulent transaction. In my industry, we call the intended receiver after looking up their phone number independent of an email and verify the wiring instructions are for the intended recipient before sending the wire. This takes time and is more of an old school thing to actually call and talk with the person intended to receive it before sending but it is a way to protect your funds being wired.
Or just use Gmail. Cuz 2020. ♂️
Always hover over the email address to check it and make sure it is correct and coming from the right source. Read slowly and carefully whenever an email is requesting money.
R U Kidding Me? Who pays a huge bill like that without knowing you received the goods or services. Amazing such a story is on an apparently credible source heee.
Someone sends you a bill and it’s paid??? And this one instance, it was not a good strategy????
I would say that’s never a good strategy!