How do you protect yourself from wire fraud in real estate transactions? Scammers are becoming increasingly sophisticated, using fake emails and fake updates to trick buyers into wiring money to the wrong accounts. Today, I’ll explain how these scams happen and what you can do to prevent them. Learn the crucial steps you need to take, like verifying the title company and double-checking wire instructions. Stay informed and protect yourself from costly fraud risks in your next real estate transaction. Watch this short video.
If you’re buying a house and you received an email instructing you to wire the down payment to an account, stop—that might be a fraud. Wire fraud occurs when a buyer receives a fake email with wire instructions. These emails can look legitimate, but they direct the buyer to send money to the wrong or overseas account. Another common scam involves receiving an updated version of the original instructions. Buyers may be tricked by a spoofed email that seems to come from the title company, leading them to wire money to the wrong account.
Wire fraud is a serious risk in real estate transactions, especially when large down payments are involved. Buyers are required to wire money to the title company when the down payment is over $50,000, but there are steps to take to protect yourself, even when the down payment is smaller. Here are three easy steps you can take to protect yourself:
1. Verify the title company. Identify the title company managing your transaction, including its official address and phone number.
2. Confirm wire instructions. Obtain wire instructions from the title company, typically sent through secure portals or FAX for added security.
3. Call the title company. Verify wire instructions by calling the title company directly using a trusted number from Google Maps instead of email.
Wire fraud is a real threat in real estate, but by confirming wire instructions and staying cautious, buyers can protect themselves. When in doubt, always verify. Be vigilant and ensure that the title company’s contact details are correct before making a wire transfer. If you need help navigating secure real estate transactions, feel free to reach out for assistance. You can contact me at 847-577-4476 or email me at Info@TheGoodLawGroup.com. I look forward to hearing from you!
