Wire fraud is a growing concern in the real estate industry, especially during escrow transactions. Cybercriminals often target buyers, sellers, and escrow officers, attempting to redirect large sums of money through fraudulent wire instructions. Protecting yourself from wire fraud requires vigilance and proactive measures.
1. Verify Wire Instructions in Person or by Phone
Always verify wire instructions directly with your escrow officer. Use a verified phone number—one obtained from a reliable source, like your initial contract or an in-person meeting. Avoid relying on contact information from emails, as these can be spoofed.
2. Be Cautious with Email Communication
Emails can be compromised. If you receive updated wire instructions or suspicious requests, treat them with skepticism. Look for signs of phishing, such as misspellings, grammatical errors, or unusual email addresses that differ slightly from legitimate ones.
3. Confirm Before Sending Funds
Before wiring any money, double-check the account details with your escrow officer. Take your time to ensure the information is accurate—rushing increases the risk of mistakes.
4. Monitor Your Transactions Closely
Once you’ve initiated a wire transfer, follow up with your bank and your escrow officer to confirm the funds were received in the correct account. Prompt action can mitigate losses if an error is detected.
5. Educate Yourself and Your Team
Understanding the risks of wire fraud and sharing this information with all parties involved in the transaction can significantly reduce the chances of falling victim. Escrow professionals often provide valuable guidance and support to ensure a secure process.
6. Trust Your Escrow Team
Work with experienced professionals who implement strict security measures. A reputable escrow company will prioritize safeguarding your funds and providing clear communication throughout the transaction.
By staying vigilant and maintaining open communication with your escrow officer, you can help ensure a safe and successful transaction. Protecting your investment is a team effort, and taking these precautions is essential for peace of mind. save on title and escrow fees from a reissued title insurance policy from the same underwriter. Some lenders and title companies in certain states may also offer rate reductions for retired and active-duty military members.
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