When your home purchase process nears closing and you get ready to sign the final paperwork, your excitement grows as you imagine all the waysyou will make it your own.By all means, enjoy this moment to the fullest but don't allow wire fraud to creep its way in and steal your happiness. Learn how to avoid wire fraud and you'll be in the clear!
Wire fraud can happen as a home buyer transfers down payment funds from his/her bankto his/her title company in order to close on their new home. The thief poses as the title company (typically via email), giving false wiring instructions, and disappears with the money before the transaction is complete - often leaving the potential buyer with nothing. According toThe Washington Post, wire fraud continues to be the fastest-growing form of real estate cybercrime in the United States: thefts of home-purchase money wired to complete closing transactions. Given the prevalence of this crime, safeguarding yourself against wire fraud is more important than ever.
Wiring money is typically an essential component of the home buying process, so follow the steps below to avoid falling victim to wire fraud on your next home purchase:
Never trust wiring instructions that come by email, even if it seems like a trusted source like your real estate agent, lender, or title representative.Theifs have been known to hack and spoof emails that appear to come from your title company and provide instructions for transfer of your funds into their hands. Even if you think the emailed instructions came from a reliable source, never skip the next step!
Call your title company in order to verify that the wiring instructions you've received are correct. Title companies understand the danger of wire fraud and will be happy to verify the wire destination over the phone.TIP - Be sure to use a phone number you've obtained in person or in verified paperwork. You can also verify a phone number via online websites such as Google, Yelp, or the company's webpage.
Read the entirety of your wire instructions. Typos or mentions of foreign companies are red flags.
Never share account information over email or over the phone to a caller who's contacted you. You should always be the one to initiate the phone call.
Consult your real estate agent. They deal with countless wire transfers every year and have the best interest of your successful home purchase at heart.
By following these simple steps, you can take control of your home-buying destiny! Never fall victim to losing tens or even hundreds of thousands in the midst buying a home.
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