FBI report that about $150 million fraud losses take placed in real estate in the previous year. Americans and the industry pros who are responsible for serving them should strengthen the cybersecurity department.
Experts said that most of these losses occur because of the easily hackable email address or too much data available in public. For this reason, fraudster gets the opportunity to step into a person’s life with stress and expense.
After that, they get themselves into the communication that provides fraudulent information with the attempt to carry away down payment, closing costs, or both.
Mitigating the Scam
Tom Cronkright, who is the CEO of the identity verification solution CertfID and a victim of deception, stated that buyers with red flags are cautious to prevent potential losses. Cronkright said that they asked you when you wanted to send the wire.
They will make a hurry to transfer the money to avoid detection. Recent legal cases show an increasing need to be aware of the people about this topic, especially in the subject of the agents and vendors in the home buying process.
In Bain v. Platinum Realty, a jury detected two agents with fault, and at the time, a buyer forfeited $196,000 in a wire fraud scam. The reason is that the agent did not make the buyer aware of the fraud risk forthcoming.
Be Careful When You Are Mailing Documents
Real estate agents use pdf attachment freely to transfer contracts, every so often. These documents carry implausibly personal and delicate information, including price, deposit terms, loan amounts, closing dates, and so on.
Transferring these sensitive documents via email is not safe cause it is less secured. Instead of this, use any transaction management system which is more reliable like Instanet, Dotloop.
Be Careful to Changes
Please do not trust any changing information so quickly, especially when it comes to email. New or changed data sent via email might be for fraud scam- you don’t know the fact.
The possibility that the information can be improved is so low. Within a 30 days’ window, it is not going to take place. So always beware of when you see any changes.
Double Checking Email Address
Always keep in mind that fraud can take place by other email addresses. So, whenever you get an email regarding the transaction, check that it is from the same email address you get from the very beginning.
What to Do after Victimization
If you find out that you have been victimized in a real estate wire fraud, it is sure that you want your loss to be recovered. For this, you should contact your bank as soon as possible about the scam.
Notify your local law enforcement and also the FBI. Inform everyone related to this transaction. And the critical thing in this process is the timing. As soon as you report, the possibility of your recovery will increase.