Since 2021, all real estate transactions have included a Wire Fraud and Electronic Funds Advisory to protect buyers, sellers, and agents from the increasing threat of fraud. A recent Malwarebytes article detailing a $20 million theft spree highlights just how critical these precautions are in today’s digital world.
The article outlines how hackers infiltrated the real estate process, using sophisticated phishing techniques to deceive title companies, real estate agents, and attorneys.
“In the initial phase, Babatunde Francis Ayeni and his criminal gang targeted US title companies, real estate agents, and real estate attorneys. Employees of these companies were tricked into clicking malicious attachments and links and filling in their email account login information on fake sites. The information entered went straight to the phishers, allowing the criminals to monitor the emails of those employees.”
Once these criminals had access to email accounts, they monitored communications to identify the timing of real estate transactions. Then, they impersonated trusted parties, sending fraudulent wiring instructions to unsuspecting buyers or sellers. The result? Devastating losses, often representing life savings.
How You Can Stay Safe:
- Verify Wiring Instructions: Always call the title company or escrow officer directly using a phone number you’ve independently verified. Never rely on instructions sent via email without verbal confirmation.
- Be Wary of Unsolicited Links: Avoid clicking on email links or attachments from unknown or unverified senders. Even trusted contacts could have compromised accounts.
- Use Secure Communication: Work with professionals who prioritize secure platforms for sharing sensitive information. Many title companies now use encrypted portals for wire instructions.
- Look for Red Flags: Watch for slight email address changes (like an extra letter or number), a sense of urgency in messages, or unexpected requests for payment.
Real Estate Wire Fraud: A Growing Threat Across Industries
While this example focuses on real estate, phishing scams and fraud are rampant across all industries. The holiday season, in particular, is a time when scammers ramp up their efforts, hoping to catch people off guard. Fraudsters often use convincing tactics, such as impersonating colleagues or trusted businesses, to lure victims into clicking on malicious links or entering sensitive information.
The Importance of Awareness
Staying vigilant and informed is the best defense against becoming a victim of wire fraud. As your trusted real estate advisor, I take these threats seriously and encourage all clients to exercise caution when navigating real estate transactions. From verifying wiring instructions to leveraging secure communication channels, my goal is to help you safeguard your investment.
In the rush of the holiday season—or anytime—take a moment to double-check links, texts, and emails before you click. It’s a simple step that could protect you from significant financial loss.
Read More: Scammer robs homebuyers of life savings in $20 million theft spree | Malwarebytes
