Buying a home is exciting. You saved for the down payment, scheduled the move, and are getting ready to close… Unless…
unless a scammer gets your settlement fees first.
Criminals are hacking into the email accounts of real estate agents or other persons involved in a real estate transaction and using information gained from the hack to dupe a party into a fraudulent wire transfer. The hackers often send an email that appears to be from an individual legitimately involved in the transaction, informing the recipient, often the buyer, that there has been a last minute change to the wiring instructions. Following the new instructions, the recipient will wire funds directly to the hacker’s account, which will be cleared out in a matter of minutes. The money is almost always lost forever.
Here are 6 prevention tips:
1. You should NEVER transmit nonpublic personal information (credit or debit card numbers, bank account or routing numbers, etc.) by e-mail, text message, etc. E-mails attempting to induce fraudulent wire transfers are common and may appear to come from a trusted source.
2. Do not respond if you receive any electronic communication directing you to transfer funds or provide nonpublic personal information, even if the message appears to be from your agent, a broker, your escrow company, etc.
In California, the request for wire information will come from Escrow and/or Title companies only and should be sent using encryption. Do not accept a standard, unsecured e-mail with a request to wire funds. If you receive such a request it’s likely part of a scheme to defraud you by stealing funds from you or using your identity to commit a crime.
3. Immediately prior to wiring any money, the person sending the money must call the intended recipient to verify the wiring instructions. Only use a verified telephone number to make this call.
4. Do not trust contact information in unverified emails. The hackers will recreate legitimate-looking signature blocks with their own telephone number. In addition, fraudsters will include links to fake websites to further convince victims of their legitimacy.
5. Never click on any links in an unverified email. In addition to leading you to fake websites, these links can contain viruses and other malicious spyware that can make your computer – and your transactions – vulnerable to attack.
6. Immediately contact all parties to all of your upcoming transactions and inform them of the possibility of this fraud. To notify Berkshire Hathaway of suspected fraud related to your real estate transaction, call your agent immediately and email fraud@bhhscal.com.
Be aware that these emails are extremely convincing. Many sophisticated parties have been duped. No one should assume that they are “too savvy” to recognize the fraud. In addition, no one should assume that they are “too small a target” to be on these criminals’ radars. This fraud is pervasive, convincing, and constantly evolving.
More Info
For more information on this and other cyberscams, as well as further information on cybersecurity best practices, visit these resources:
http://www.realtor.org/articles/urgent-alert-sophisticated-email-scams-targeting-the-real-estate-industry
http://speakingofrealestate.blogs.realtor.org/2015/05/19/alert-wire-fraudsters-targeting-real-estate-transactions/
http://www.realtor.org/law-and-ethics/protecting-your-business-and-your-clients-from-cyberfraud
http://www.realtor.org/articles/request-to-redirect-funds-should-trigger-caution
http://www.realtor.org/topics/data-privacy-and-security
http://www.realtor.org/topics/risk-management
http://www.realtor.org/articles/internet-security-best-practices
http://www.realtor.org/topics/realtor-safety/articles
About Jaleesa Peluso, Orange County Real Estate Agent
Jaleesa and her real estate team specialize in South Orange County homes and neighborhoods, including: Dana Point, Irvine, Laguna Beach, Laguna Niguel, Newport Beach and San Clemente. Thinking of making a move in South Orange County? Call us now at (949)395-0960!