Hackers everywhere are trying to take advantage of individuals who are buying a home by committing wire fraud, even more so today due to the increased usage of electronic payment methods. While these are convenient, buyers must be vigilant when sending a wire transfer to their real estate attorney or agent. A hacker might use a similar email address or steal a logo from the company you are working, then detail fake wire instructions in order to trick you into sending them money.
By not following the proper steps to ensure that you are sending your money to the right company or person, you are putting yourself and your real estate transaction at risk. We have listed a few ways in which you can protect your money when sending a wire transfer:
1 | Awareness
Keep in mind that it is very unlikely that a company will provide wire instructions to you via email when you are buying a home. If you receive an email that contains wire instructions, even if you are expecting to send a wire transfer soon, it is best to be skeptical.
2 | Confirmation
After receiving instructions or a request to complete a wire transfer, confirm those instructions by phone first. Make sure that you use a known number rather than numbers or links included in an email. You will also want to call your bank before transferring any money to confirm the name on the recipient’s account, as well as verify immediately (within 4-8 hours) that the law firm, title company, or real estate agent has received your transfer.
3 | Take Action
If you discover that you have been duped by a wire fraud scheme and are wondering how to fix it, noticing that it occurred and taking action within 24 hours will give you the highest chance of recovering your money. Immediately request a recall notice from your bank, then report the crime by calling your regional police and FBI office and going to www.IC3.org.
When you are working with Cona Law to buy a house, we will do our best to protect your transaction, such as providing clear wire instructions and being available to answer your questions about potential cyber fraud. Hackers are smart, but we will always try to be smarter. Click the link below for more information about our services.