Wiring your funds to close and what to do

Wiring money to close on your home is a relatively simple procedure, which makes it a perfect target for criminals.

It takes a little extra caution and attention to make sure you are safe, and it is still just a couple of phone calls and a few clicks of your mouse.

Step 1: Take your time.

Slow down and think about what you are doing. Look for suspicious wording or emails.

If you get an email with wiring instructions from a lender, broker, or realtor, stop. It is fraudulent. Only the title company sends instructions, and those instructions will come from a secure portal.

Step 2: Make multiple phone calls.

Always call your title company when you are first introduced to them so you know who they are. Always call your title company to confirm the wiring instructions.

Step 3: Be aware of crime.

According to the National Realtor Association, Real estate wire fraud continues to be one of the most prevalent cybercrimes in the U.S.

About 13,638 people were victims of wire fraud in the real estate and rental sector in 2020 (a 17% increase over 2019) with losses of more than $213 million ), according to FBI data. That ranks real estate and rental wire fraud #7 out of more than 30 types of fraud tracked by the FBI's Internet Crime Complaint Center.

The highest reported fraud in real estate in 2020 was Business Email Compromise/Email Account Compromise (BEC/EAC.) Fraudsters will assume the identity of the title, real estate agent or closing attorney and forge the person’s email and other details about the transaction. The scammers will then send an email to the unknowing buyer and provide new wire instructions to the criminal’s bank account.

ALWAYS CALL BEFORE WIRING MONEY!

For more home buying help, subscribe to our blog.

Learn more by tuning in. Subscribe.