It seems like every time we turn around, there is some new type of fraud or scam on every level. From the Target security breach to the random identity theft, you have to take extra care to keep your accounts safe. One fraud that I want all my clients to be aware of is the latest scheme to redirect your escrow funds to a fraudulent account and how to prevent it.

Since real estate agents are so easy to find with all of the website and internet advertising, Hackers are able to identify individuals in this field and hack in to the email listed as their contact information. Once inside the email account, the hacker looks for paperwork on pending real estate transactions. They find an address and then search further for more documents, email correspondence and unique information. Once they have the credibility regarding a specific transaction, they email the client from the hacked agents, mortgage brokers or escrow officers’ account and direct the buyer to wire the necessary funds to close the sale into a bank account that does not match the account on the escrow instructions, but is instead controlled by the hacker. If the buyer does not pay attention to the account numbers and verify first before proceeding, they wire the money as directed and the money is lost most likely forever. So how can you prevent this from happening? Here are a few steps!

1.)    Your real estate agent and escrow officer will specify exactly how the payment process will go from the very beginning and it will not involve wire instructions into a random bank account from an email half way through the transaction. There will also typically be a number listed on the fraudulent email that does not match your escrow office or real estate agents. That should be the first warning sign that something is amiss.

2.)    Emails sent by hackers usually involve warning signs, such as being sent at hours that are not typical business operation. Additionally, there will be poor grammar and a sense of urgency that is forced. The wire instructions will also have the name on the wire account as a third party’s name that does not match the escrow officers.

3.)    Pay very close attention to any emails you receive that discuss money. There are so many email frauds these days that any financial information being discussed over email should be considered suspicious and you should pick up the phone and speak directly to the people you have been dealing with from the start.

4.)    Make sure your passwords are different on a variety of accounts. I know that it is a pain to remember a variety of passwords with all the different logins you probably use throughout the day, but it is a small price to pay compared to losing your entire life savings.

5.)    Use some discretion when discussing the details of your private life on social media outlets. People tend to overshare and become prey to people who do not have their best interest at heart. You can share you are selling your home or that you put an offer on one, but be vague, leave out the address of the home you are buying and never put in the selling amount.

6.)    If your emails are a corporate email system, ask your IT department if they have SPF Record Checking with DNS, Email Spam Filtering with Spoofing Interrogation, RBL and Reputation Service Scanning. If you have Free To Play email services, ensure that your services supports Two Factor Authentication. This makes it almost completely impossible to have your email compromised.

Always remember, if you ever have any questions about any part of the process, that is what a real estate agent is for. To advice you, be honest and assist in making the selling and buying transaction seamless and easy. If you have any questions or concerns, contact me at 530-308-4331.