What is Wire Fraud?

Wire fraud is committed in order to defraud another person out of money or something else of value and is on the rise due to the high use of email and the internet for transactional and banking services.

Stay aware of your communications and double check all email addresses you’re communicating with. Hackers who use spoof email accounts will switch around one or two letters of your Realtor®, Lender or title closer’s actual email address. Before responding to emails that seem a little off, have grammatical errors, or a false sense of urgency, double check the email address closely.

Use a reputable title company and either visit the title company in person or call the number listed on their website, do not use a phone number at the end of an email signature. When you’re ready for the closing, you can physically bring a cashier’s check into the title company or call the title company’s main line to clarify you have the correct wiring instructions.

Understand your Realtor’s means of communication. Your Realtor® will not suddenly begin to contact you in a new and different manner. The email address will not change toward the end of a transaction. You’ll also want to know how other parties involved will be communicating with you. Title companies and lenders should only be sending sensitive information via encrypted emails.

On the day of the wire transfer, don’t hesitate to pick up the phone and call the recipient to verify wiring instructions. Use the phone number you’ve been using throughout the process or call the title company or lender’s main line. Don’t use a phone number at the end of an email. Do not react to a suddenly urgent request – this is a red flag for fraud.

Always use strong passwords and ensure your agent is doing the same. It also wouldn’t hurt to change your password a few times throughout the transaction, or before a wire is sent. Finally, request your agent use a company email account, and not a free service such as Gmail, yahoo or Hotmail. You and your agent will be better protected by the use of a company email account.