Homebuyers are increasingly falling victim to real estate wire fraud, often due to lax cybersecurity and the complexities of the home-buying process. In 2023, real estate wire fraud totaled an estimated $3 billion.
Fraudsters typically exploit weak cybersecurity links in transactions, often targeting real estate agents, loan officers, title companies, or closing attorneys. Once they gain access, they learn who is about to purchase a home and send the buyer fraudulent communications, posing as settlement attorneys or title companies, with fake wire transfer instructions.
Signs of Real Estate Wire Fraud:
- Suspicious Email Addresses: The sender uses a generic email like Gmail instead of a company domain.
- Insecure Instructions: Wire transfer details are included in the email body rather than a secure portal.
- Urgency or Confusion: The email may push for immediate action or contradict previous instructions.
- Odd Formatting: The email may have unusual grammar, spelling, or formatting, though scammers are getting better at mimicking professional communication.
- Avoidance of Phone Calls: The scammer may provide a number in the email but refuse to answer calls.
Scammers quickly move the stolen funds across multiple accounts, often offshore or into cryptocurrency, making recovery nearly impossible. To protect yourself, always verify wire instructions directly with your escrow agent using a trusted phone number, rather than relying on email communications or a phone number in the body of the email.