Has Your Escrow Company’s Bank Been Hacked?
I heard a pretty scary story today at a meeting of the Southern California Chapter of Certified Residential Specialists (CRS) in Ontario.
3 stories, actually.
Seems the bank for the escrow company holding funds for several transactions (buyer’s deposits, seller’s funds) totaling many thousands of dollars was hacked and the funds were stolen.
Not a pretty picture for the sellers and the buyers.
While with all the hacking we hear about these days, this might not come as a big surprise, but I had not heard of this happening in our business. Consider not just personal information that disappears, but now tens of thousands of dollars (some on a $1.8 M deal) were gone.
The DOC and other firms, as well as police, were involved, and my understanding is SOME of the funds were recovered but not all. I’m not an attorney and don’t pretend to be, but one has to be concerned about the legal issues, in addition to the loss of substantial funds and the impact on the transaction
This raises some interesting questions:
Is the escrow company you are working with, no matter which side you are on, a reputable one?
Do they have some sort of cyber and data insurance protection in case this happens?
Perhaps something to inquire about before making an offer to find out who the escrow company is.