According to the FBI , Americans lost nearly $150 million to real estate scams in 2018. ( Forbes ).

Hither are four of the most mutual real manor scams:

  • Loan Flipping
  • Foreclosure Relief
  • Rental Scams
  • Escrow Wire Fraud

In this article, we'll focus on Escrow Wire Fraud.

First, what is Escrow Wire Fraud?

Escrow wire fraud is any event where an private is tricked into sending money via wire transfer to a fraudster. Wire fraud includes imposter scams, debt collection schemes, and identity theft. Existent manor transactions are also a target for wire transfer fraud.

How does an escrow wire fraud scam work?

Usually, scammers will hack into a title visitor's network to call back emails and information about an upcoming home purchase.

In one case they have that, ordinarily they will fix a imitation website under a name similar to the abode heir-apparent or seller you're working with. From there, the scammers volition email you instructions to wire the money needed to close on the house.

How does Wire Fraud Affect the Title Industry? –

Thousands of homebuyers are falling victim to wire fraud every year. This is a result of the title industry getting more than and more digitized. Information technology is a growing trouble and the number of people condign victims is getting larger.

To protect yourself, the National Association of Insurance Commissioners (NAIC) offers these tips to aid continue y'all safe:

  • At the beginning of your transaction obtain the proper noun, email and telephone numbers for your real estate agent, lender, championship insurer and closing and settlement amanuensis, Be sure to simply use these numbers and email addresses when communicating with the individuals during the transaction.
  • Make sure you use two-factor authentication on your ain email account and encourage other individuals included in the transaction to exercise so also.
  • Wire instructions volition come up from your title/endmost agent earlier your transaction is set to close. Every bit a buyer, exist sure to verify the wire instructions with the title/closing amanuensis by calling them directly or discussing it in person. Electronic mail accounts tin exist compromised and so be sure to verify the data y'all receive through direct advice.
  • Be aware of any e-mail or correspondence that asks you to respond IMMEDIATELY or Blitz. Championship companies will non ask for a wire transfer in this manner. Be VERY suspicious of any communication saying that wire transfer details accept been updated.
  • Always confirm receipt of the wire transfer a few hours after the wire was transmitted to ensure information technology successfully went through to the right parties.
  • To determine if your championship insurer is licensed and in skillful standing, check with your state insurance department.

SnapClose is working diligently to assist protect our customers from these scams. Aside from this commodity, we will continue to provide y'all with boosted resources for how y'all can spot fraud earlier it occurs. For more than data, please contact back up@snapclose.com