Red Flags To Help You Avoid Being Targeted For Wire Fraud
Make no mistake, wire fraud is on the rise. In our increasingly time-crunched society, we’re able to view, find, and buy homes more expediently using the internet. With electronic sources playing commonly more prevalent roles in the often fast-paced communication between all players, vigilance is required to keep your personal information secure.
Wire fraud occurs when fund transfer instructions become altered, allowing fund–like your down paymen–to be diverted from the intended recipient and delivered to another account.
The convenience of free email accounts is hard to beat. But, when it comes to protecting your personal information, they often lack the firewalls, virus protection, and other security protocols found in company-issued e-mail accounts. Hackers watching an email chain patiently wait for weeks for their perfect opportunity.
Title companies can be hacked and if that happens, fraudsters will imitate their email address taking all the required information. Then, through email, they’ll jump in at the last moment and change closing information details to the buyer.
Anyone in the transaction using a free account, potentially puts the transaction at risk. All parties involved, should be on alert for foul play and if something doesn’t feel right, trust your instincts.
How To Protect Yourself Against Wire Fraud Schemes:
- 1.Make sure you get wiring instructions in person from your loan officer or title company.
- During the home buying process, be vigilant about the information you get in emails – even if they look legit. Hackers can obtain legitimate information from compromised email accounts, leading you to believe their emails are real. That said, you don’t want to hit the “reply” button out of habit or convenience. Remember, we’re talking about a lot of money. Your money. If they made the email address look real, you could be replying to the wrong party. Key in the correct email address yourself.
- Double check the number yourself to verify. If they list a number in the email it will likely be the hackers and it may be very close to the number of your title company. Look it up yourself and call if you have questions.
- Get the wire transfer instructions in person or use a site like DocuSign or SignNow. It is no longer recommended to email instructions in the body or even an attachment.
- Vet your title company. They should have a good reputation and take cyber security seriously. They’ll direct you to their secure portals for any documents, and respond to questions and requests. Additionally, they’ll keep you informed of scams and alerts.
- Verify the instructions you get independently by phone or in person.
If You Become a Victim Of Wire Fraud Take these 4 Steps
Even the most careful of us will sometimes be targeted and tripped up. The FBI emphatically states that you must act quickly and recommends these actions:
- Contact your financial institution immediately
- Request that your financial institution contact the corresponding financial institution where the fraudulent transfer was sent
- Contact your local Federal Bureau of Investigation (FBI) field office if the wire is recent. The FBI, working with the United States Department of Treasury Financial Crimes Enforcement Network, might be able to help return or freeze the funds
- File a complaint, regardless of dollar loss, at IC3.gov
Time is of the essence in cases of wire transfer fraud. When alerted within three days, the FBI reports a 70 percent success rate of getting the money. That success drops significantly as the funds move through a network of bank accounts. Being aware that these crimes can take place can help you be on guard if something seems fishy.
If you have any questions regarding this or other scams, please give us a call or stop by our website OhioCapitalMortgage.com.
