FBI chart showing the number of real estate wire fraud victims since 2015
May 2018 was the most active month in United States history for real estate wire fraud.
Thus far in 2018, we’ve seen an alarming number of real estate wire fraud scams across the country, with a disconcerting increase in recent months. In fact, according to the FBI, May 2018 (the most recent figures available) was the most active month ever for wire fraud victimizing potential homebuyers! With that in mind, I wanted to warn you and let you know the best steps you can take to make sure you and your loved ones aren’t taken advantage of during the homebuying process.
The way scammers are commonly going about this fraudulent act is by hacking into an email account, then monitoring your email conversations, waiting for something that tips them off that your closing is near (i.e. the preliminary closing statement). Once the scammers know you’ll be closing soon, they’ll pose as a legitimate source (someone from the title company, your Realtor, the mortgage lender, or the settlement officer in charge of your real estate closing) and send a fake email with wiring instructions. The next thing you know, your hard earned money has been wired to an overseas account the scammer has set up, and it likely is gone forever.
Because of the growing prevalence of real estate wire fraud, Boulevard’s broker, Bill Baldwin, recently invited Chantal Froelich, AVP/Business Development Manager at Fidelity National Title, to our Heights office to discuss this critical issue with us. Chantal made it clear that neither buyers nor agents will ever get wiring instructions in an email. Thus, any email with wiring instructions—no matter how legitimate it seems—should not be trusted. Instead, she urges everyone to “inquire before they wire.” That means calling the title company to double check before wiring. Chantal emphasized that you should always make that call to a known, trusted number you’ve had since the beginning…and definitely not one from an email with wiring instructions!
If you discover you’ve fallen victim to one of these scams, it’s still possible to save your money, but you’ll need to act fast. If you catch it in the first few hours, you can have a fighting shot.
Here’s what to do:
- Contact your bank to report the fraudulent activity.
- Notify your local FBI office.
- File a complaint online at the FBI’s Internet Crime Complaint Center.
Ultimately, the best way to defend against real estate wire fraud is by only having verbal discussions—in person or via a reliable, verified phone number—with the title company regarding wiring instructions, and by being vigilant about double checking with them. Before wiring any money, call your settlement or closing agent at the title company (again, on a trusted number) to confirm that your instructions are correct. Then call them again right after to confirm that the money you wired was received. This can certainly seem like a big hassle at the time, but when the alternative is losing out on your dream home and a huge sum of money all at once, it’s definitely worth it!
If you have any additional questions about real estate wire fraud, give me a call at 713.829.3052 or email me at cynthia@cynthiamullins.com.
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