Wire fraud is a growing threat for homebuyers as criminals get smarter about how to mimic legitimate business emails. This leads to homebuyers wiring down-payments and earnest money payments to unauthorized bank accounts and can have devastating consequences.
A shocking 50% of Americans click on links in personalized spearphishing emails that look legitimate. Fraud attempts and losses increased nationwide in 2020 and perhaps the worst part is that a full recovery of lost funds has only been possible in 29% of all cases. CertifID identified $1.4 billion in suspected wire fraud attempts during 2022 which is an astonishing 145% year-over-year increase in instances of reported wire fraud.
How can wire fraud be prevented? What should you do if you have been targeted?
Be Vigilant. Always confirm wiring instructions and ensure that the information you’ve received has come from your title company and/or real estate agent. Stay on the cautious side and double check everything before completing the transaction.
Protect Your Money. Before sending the wire, make sure your bank has confirmed the name on the account. And follow up by the next business day to confirm that the money has been received.
Report the Crime Immediately. Call your bank right away and ask them to issue a recall notice for your transaction. Visit www.Ic3.com and report the crime. Performing these actions within 24 hours gives you the best chance to recover your money.
Purchasing a new home is an exciting step but it’s important to be aware of the risks that can accompany this milestone. Working with an agent that utilizes real estate payment software such as Tidal Money can ease some of the burden and risk of fraud with secure money movement options.