House hunting is stressful enough as it is. Throw some convincing fraudsters into the mix and it’s even more of a nightmare. One couple in West Virginia was swindled out of $255,000 due to real estate wire fraud. Take a few moments on this Fraud Friday to learn about this type of scam and how to prevent it from happening to you or any homebuyers you know.
Just days before closing on her dream home with her husband, Raegan Bartlo received an email she thought was from her title company. The email prompted her to wire the money for their down payment of $255,000, which she did.
Soon after, Bartlo learned that the email was not from her title company, and she and her husband were out $255,000 — the entirety of their savings. Bartlo was a victim of real estate wiring fraud, a scam that occurs when fraudsters gain access to the email of a title company, mortgage company, or realtor and target homebuyers who are due to make large payments. They send wire transfer instructions in a convincing email, and that money then goes straight into the scammer’s account.
According to experts, global crime syndicates are sometimes the ones pulling the strings behind real estate wire scams. They hack into banks, real estate companies and law firms to gain valuable information that helps them craft convincing communications, send realistic emails, and better impersonate trusted companies.
Estimated losses in wiring scams are close to $5 billion a year. So how can you protect yourself?
Review these 5 tips for spotting signs of wire fraud:
- Remember that wire transfers are similar to sending cash in an envelope in the mail. Once it’s been sent, it’s gone. That’s why scammers love to use wire transfers in their ploys.
- If you receive an email you think is from your title company asking you to wire money, be extra cautious. Double-check the email address and look for small changes, such as extra spaces or punctuation marks.
- One complication is that scammers can sometimes acquire access to legitimate email accounts. To be safe, after receiving wiring instructions, call the title company at their publicly listed phone number to verify they sent the email.
- If there are last-minute changes to your home closing or wiring instructions, be on high alert. Call your realtor, title company, and financial institution to verify these changes.
- If you think you’ve fallen victim to a wiring scam, alert your bank immediately. In some cases, there’s a chance they can stop the transfer.
Stay safe out there in the homebuying world! At Guthrie County State Bank, we’re here to protect your money and provide you with the information needed to prevent scams.