Beware of Mortgage Wire Fraud During Closing When Buying Home in Arizona
Buying a home, especially the first, is supposed to be an exciting time. However, the very nature of real estate transactions with large amounts of money transferring between parties, makes them a prime target for criminals. One of the fastest growing cybercrimes in the U.S. is wire fraud in real estate. The scammers is taking advantage of homeowners during the stressful closing period. And if you aren’t careful, you too could lose your closing fund. Read what is mortgage wire fraud and how to avoid it.
What is mortgage wire fraud?
Mortgage wire fraud is a scam in which a cybercriminals poses as your real estate agent and convinces you to wire-transfer your closing costs to a fraudulent account. In a typical scenario, cybercriminals identify a pending sale transaction and then build a profile of the parties – including the title company, real estate agents, and the buyer and seller. They hack into one or more parties’ email account, usually sending false wire instructions that divert deposits, closing costs and even mortgage payoff funds from their intended, lawful recipient.
How to identify fraud and avoid it?
Know your closing process
Understanding your closing process before your money is due can help you avoid scams. Speak with your real estate agent in person or over the phone and discuss how you’ll complete the closing process. Talk with your lender directly about how you should wire money, if you choose the wire the money. Be very hesitant to discuss the closing process via email. Cybercriminals can use this information later to pose as someone you trust. The best way is to bring in cashier check for closing.
Never email your financial information
Email is never a safe way to transmit your financial information. Phishers can use this information against you later after a hack, even if you’re emailing someone you trust. Stick to in-person meetings or phone conversations to share important information, such as financial information.
Beware of last minute changes
It’s extremely rare that wiring instructions will change at the last minute, or that this information will be provided by email. Be wary of anyone who urges you to act fast or send money immediately, especially if the request comes over email.
Call to confirm any wiring instructions
Don’t follow any emails with wiring instructions, even if the letter looks legitimate. Call the title company using an independently obtained and known phone number. Don’t use phone numbers or links from an email. Call the title company verify all wiring instructions before transferring your funds.
Call to receipt of wires
Within four to eight hours, after wiring your fund, call the title company or real estate agent to confirm they received your money. Your bank will confirm that a wire was sent, but it won’t confirm that the to confirm receipt of the wire. If you catch a problem early, it’s more likely you might recover your funds.
What to do if you believe you’ve been scammed
Contact your bank or wire transfer company immediately
Contact your bank or wire service if you have any inkling that you’re not sending money to a trusted party. Request a wire recall as soon as possible after you make the transaction. In some cases you may be able to get the money back that you sent, but only if you act fast.
File a complaint with the FBI
The FBI has an internet crime division that might be able to help you if you’re a victim of fraud. You can contact the FBI’s Internet Crime Complaint Center and submit a report. The more information you include in your report, the more likely the FBI will be able to help you.
We hope none of our real estate clients ever experiencing wire fraud. We only partner with title companies and lenders who practice the highest safety protocols when it comes to our client’s financial well-being. If you or anyone you know have questions regarding your financial safety during a real estate transaction, call you title company, lender or REALTOR, and make sure you are satisfied with the answers.
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ and surrounding area, we hope you will consider us. Contact us today for complimentary consultation.
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