Welcome back for Part 3 of our ongoing series, “show me the money,” all about the funding process. So far, we’ve learned how to navigate both a buyer and seller’s side of a transaction. Today it’s time for an overview on a very hot topic: wire fraud.
With the growth and benefits of technology has also come some very real dangers for future homeowners. Wire fraud cases are at an all-time high in the real estate world. The term “wire fraud” generally means that an outside third party is working hard to get future homeowners or the title company to wire funds to the wrong place prior to closing. So, how do we protect future homeowners and how can they protect themselves? Let’s talk through some very practical steps for buyers when it comes to wiring money.
First, as soon as you go under contract, change your email password!
You can even choose to change the password more than once during the closing time frame. Many phishing attempts begin with a “fraudster” accessing a personal email account and reviewing emails (thus seeing that they’re involved in an upcoming purchase transaction). Changing your email password now provides an extra step of security by booting out any unwanted onlookers.
Second, it’s important to be aware of what “phishing” looks like.
This is the process by which those fraudsters access your email account in the first place. Be wary of unsolicited emails asking to enter email credentials. This gives that third-party access to your email account, thus allowing you to see that you have a purchase coming up soon.
Third, knowing how to spot fake emails is key.
Many “fraudsters” will try to email from what appears to be a title company employee. Characteristics of this fraud attempt can take on a couple different forms. One example is that an “urgent” request is sent saying to wire funds immediately so as to not prevent closing (HINT: most title companies will not send the wire instructions without the client first requesting them.) Another fake email might look like a title company employee telling someone they are unavailable by phone (HINT: title employees are always available by phone during business hours. You should simply call the title company’s office using a published phone number and verify). In addition, title companies do not use gmail, Yahoo, Hotmail, or any generic email server. You should check the email address from where the email was sent. And finally, you will never be asked to wire funds to an individual. Funds will always be sent to an account in the title company’s name.
While there is no way to completely eliminate the threat of wire fraud, these three steps are a great place to start. The more you’re equipped for all possibilities, the better protected your money will be. Because who wants to send their money into a black hole? I don’t know of anyone that would.
Learn anything new yet? I hope so! And I genuinely hope this helps so your clients feel confident in what is taking place. Stay tuned for next month when we discuss the funding process on estate sales.
Until then, keep asking good questions and educating yourself. See you soon!
Jordyn Schumm, a Franklin native, has been the director of business development with Magnolia Title for the last two years. She currently serves on the YPN, Habitat for Humanity and Public Education committees for Greater Nashville Realtors.
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November 05, 2021 at 05:30PM
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Show me the money! How to spot wire fraud - Main Street Nashville
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