FAQ #2: Wire Fraud!

By
Real Estate Agent with Big Block Realty 858.232.8722 CA BRE# 01261476

FAQ: Do you take checks?

FAQ: What is Wire Fraud?

 wire fraud

Traditionally, when buyers makes an offer, they include an Earnest Money Deposit or "good faith" deposit to be held by Escrow until they either close escrow and apply it towards the purchase price or cancel and it's refunded (in some, but not all cases). Buyers also send monies at the closing of escrow to pay the balance due, loan or not.

 

Buyers often ask if they can give me a check to deliver to escrow. "No. We do not handle money at all anymore, where in years past we did." Today we expect all monies in escrow to be wired; it's faster, easier and has no waiting period for funds to clear.

The problem with this electronic process has been the advent of Identity Theft and Wire Fraud!

 

wire fraud

 

Agents of Evil that hack your escrow's email, your Realtor's email and your email to mimic wire instructions perfectly with one almost undetectable change...the account # your funds transfer to! They redirect your money into their accounts and POOF! It’s gone! This can happen to sellers on the delivery of proceeds too.

 

*ACCORDINGLY, BUYERS AND SELLERS ARE ADVISED (per C.A.R.):

1. Obtain the phone number of the Escrow Officer at the beginning of the transaction.

 

2. DO NOT EVER WIRE FUNDS PRIOR TO CALLING YOUR ESCROW OFFICER TO CONFIRM WIRE INSTRUCTIONS. ONLY USE A PHONE NUMBER YOU WERE PROVIDED PREVIOUSLY. Do not use any different phone number included in the emailed wire transfer instructions.

 

3. Orally confirm the wire transfer instruction is legitimate and confirm the bank routing number, account numbers and other codes before taking steps to transfer the funds.

 

4. Avoid sending personal information in emails or texts.  Provide such information in person or over the telephone directly to the Escrow Officer.

 

5. Take steps to secure the system you are using with your email account. These steps include creating strong passwords, using secure WiFi, and not using free services.

 

More Resources:

 

Federal Bureau of Investigation: https://www.fbi.gov/

 

National White Collar Crime Center: http://www.nw3c.org/

 

On Guard Online: https://www.onguardonline.gov/

 

 

Images courtesy of Stuart Miles at FreeDigitalPhotos.net

*C.A.R. Wire Fraud Advisory

 
Posted by

REALTOR®, CRS, RCS-D, CDPE, ePro, Certified:Military Home Specialist,

Certified: Luxury Home Specialist Podcast Host, Author & Keynote Speaker

POSTCARDS FROM SUCCESS

Brokered by Big Block Realty

Do You Know The Market Says Your Home is Worth?

CA-BRE# 01261476, since 1999  (My Team)

 "Oh by the way, I'm never too busy to serve you and your referrals to good people like you."

 mobile: 858-232-8722 / e-fax: 650-240-0717   

 www.ThomasJNelsonRealtor.com 

 Sunroad Corporate Center: 4445 Eastgate Mall l Suite 200 San Diego l CA 92121

RCS-DivorceSouthern California Chapter of Certified Residential Specialists (CRS)

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Disclaimer:  Nothing in this blog article is to be construed as legal advice, tax advice, medical advice or financial advice.  For legal advice see an attorney.   For tax advice, health or financial advice see a tax attorney, certified public accountant, or other qualified professional.
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Rainmaker
1,459,796
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

It's such a pain in the butt that we have to be so suspicious of every thing we do. But it's the only way to keep our money safe and to ensure it gets to the party we want it to get to.

Jun 07, 2017 03:47 AM #1
Rainmaker
579,749
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Excellent advice, Thomas. Consumers, even home buyers, have to be diligent to protect themselves from internet scammers.

Jun 07, 2017 06:36 AM #2
Rainmaker
775,702
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

It's so interesting that all is done by wiring down there.  We still do personal checks for the most part for EM here and very often down payment & closing costs are brought to closing by cashiers check, even our CA clients don't always wire funds and never for EMD.  Wire fraud is definitely something to be aware of. -Kasey

Jun 07, 2017 03:27 PM #3
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Rainmaker
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Thomas J. Nelson, Realtor e-Pro, CRS, RCS-D, Vets

& Host of Postcards From Success Podcast
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