Money transfer hacks

A growing scheme is taking advantage of people looking to buy a house or condo. The scammers pose as brokers or real estate agents and soliciting fraudulent down payments.

In some cases the innocent house buyer receives an email right when they are in the process of buying the property and they are in contact with a legitimate title company. The fake email has instructions on how to send the wire transfer. The buyer ends up sending thousands $$$ thinking they are sending it to the right title company -and then it's gone.

How does it work?

Scammers send phishing emails to brokers and title companies - and if they gain access to the client information, they can then hack into the email accounts and send fraudulent money wire instructions - to accounts that only the thieves can access. 

This is tragic for would-be home buyers!

Investment scams and money wire fraud

Millions of emails are sent each day claiming that you will make lots of money by investing any number of opportunities (real estate, start up companies or cryptocurrency. The Federal Trade Commission explains that scammers may first get your attention with infomercials, social media posts, or online ads offering free events, materials, or introductory videos.

What can you do to protect yourself?

• Call the title company or investment company. Before any money transfer to confirm that funds are going to the right place.
• Verify the payment process with closing agents and parties involved. The process of sending money should never change, so emails instructing buyers to send money differently before the closing should be a red flag.
• Check email and URL addresses used in communications asking for a money transfer. Call the agent or broker to confirm it's the correct URL if you are not sure. Conducting business on cell phones can make detecting fraud harder since web addresses can appear differently on desktop and mobile browsers.
• Resist pressure to commit quickly. Scammers want you to act fast and might tell you that space is limited or that you’re getting a special deal. They don’t want you to take time to research the program or think it through.
• Research investment programs. Search online for the name of the company or program and words like “review,” “scam,” “fraud,” or “complaint.” Other people’s experience with the company can alert you to possible problems.
• Verify investment claims on your own. Never put money into an investment based only on what someone claims or what you read in an online newsletter, review, or blog. Scammers will often invent stories or testimonials about how successful people are at making money with their investment offer. Another trick? Scammers create the impression that their investment opportunity is just like the latest investment opportunities you hear about in the news. Don’t believe it.
• Know the risk. Investments always involve risk. There are no guaranteed returns. Don’t trust anyone who plays down the risk of an investment or who acts like risk disclosures are just a formality or something you don’t need to worry about. Scammers want you to think their opportunity is risk-free, but it’s not.