Beware of Wire Fraud Scams

Use these three tips to protect your clients from fraudsters

As the technology boom has made closing the deal a much easier process, it’s also paved the way for hackers to defraud unsuspecting buyers out of hundreds of thousands of dollars in recent years. Wire fraud is on the rise but REALTORS® can help protect their clients through education. Here are a few tips to safeguard your clients from digital crooks:
Notice the Signs

“These fraudsters will hack a REALTOR®’s email account and pretend to be a party in the transaction in order to redirect wiring instructions to their own account. They will usually say that there’s a problem with the account they were given initially and the funds need to be sent to a different account number. The emails look legitimate and could even have the REALTOR®’s signature or picture on them. People should know that there will never be a change to the wiring instructions, and if there is, they should always make a phone call to verify the change.”
Limit the Use of Email

“Always transmit wiring instructions securely. At Reltco we only request wiring instructions in person from the seller on the day of closing. Never transmit your wiring instructions via email, even if it’s secure, because you don’t know if the receiving party may forward them to an unsecured third party email. If you’re not providing them in person, then fax or mail is the safest alternative.”

Do Business with “Best Practices Certified” Title Agents

“Email addresses are continuously being hacked, especially those of REALTORS® who use domains such as Gmail, AOL and other similar providers. Hackers track the communication between REALTORS® and their clients early on in the process of home listing and selling and subsequently steal non-public information (NPI). The title industry is addressing the protection of NPI by establishing a set of standards that title agents should adhere to. These standards are called best practices. One way to minimize the risk of NPI theft is by only doing business with title agencies that have been certified in the American Land Title Association’s Best Practices. Before you recommend a certain title and settlement agent to your clients, do your due diligence and make sure the title agency can produce its Best Practices certification.”