TIPS FOR AVOIDING REAL ESTATE CYBER SCAMS
This article has a ton of Tips for Avoiding Real Estate Cyber Scams in your area. As business transactions increasingly take place online, scammers are looking for new ways to engage in cyber fraud. Unsuspecting real estate buyers and sellers can be particularly vulnerable because they are dealing with large amounts of money. In fact, several recent scams have specifically attacked house-hunters.
Last month, the National Association of Realtors warned homebuyers of a new, sophisticated real estate scam where thieves can steal tens of thousands of dollars. Here’s how it works:
Thieves hack into email accounts to get information about a real estate transaction. When it’s time for the buyer to transfer money to purchase the home, the scammer sends what looks like a legitimate email from someone involved in the transaction, such as the Realtor, mortgage lender or title agent. The email says there’s a last-minute change to the wiring information and provides new wiring instructions, directing the money straight to the scammer where it is often lost forever.
Another scheme targets buyers who have just purchased homes. Scammers send a letter or email to the new homeowners asking for money for a copy of the property deed. What many people don’t realize is they already paid for all the necessary documents as part of their closing.
It’s not just buyers that have to be on their guard. Potential renters also have to be watchful. One common scam occurs when thieves steal property photos online and then repost them as fake rental ads. When would-be renters are interested, the so-called seller asks them to provide a security deposit and first and last month’s rent. After making the payment, the renters realize they’ve been scammed when they never get access to the property.
While there are countless scams, especially online, the National Association of Realtors provides the following tips to help you stay safe:
TIP # 1 – NEVER WIRE MONEY WITHOUT INDEPENDENTLY VERIFYING THE INSTRUCTIONS
Immediately before wiring money, call the intended recipient to verify the wiring instructions. Do not call the number listed in the email. Oftentimes, scammers imitate legitimate email signatures to make the message look authentic. Use a phone number that you have independently determined to be correct.
TIP # 2 – DO NOT SEND SENSITIVE INFORMATION VIA EMAIL
Do not send banking information, social security numbers or other sensitive personal information through email. If you must send this information, use encrypted email. When using email, make sure to use strong passwords and change them regularly. Furthermore, do not check banking accounts or use other sensitive data when you are on public Wi-Fi or an unsecured network.
TIP # 3 – DO NOT CLICK ON UNVERIFIED EMAILS
Do not open or click on links from senders you don’t recognize. If an email ever seems even slightly suspicious, never click on any links in the email or reply to the sender. Be particularly wary of attachments from unknown senders, which can contain vicious viruses.
TIP # 4 – REPORT ANY ATTACKS
If you are the victim of an attack, immediately contact the financial institution to have them stop the transfer of funds if possible. Notify all parties in the transaction, call the police and report the incident to the FBI Internet Crime Complaint Center, www.ic3.gov, and Federal Trade Commission.
TIP # 5 – ASK YOUR REALTOR LOTS OF QUESTIONS
If there’s something about the home-buying process that you don’t understand or that doesn’t seem right, ask your Realtor. He or she can let you know what procedures, processes and fees are normal and customary — and which ones aren’t. Your Realtor will have more tips for avoiding Real Estate cyber scams.
“Using a Realtor means you’re using a real estate agent that has access to the latest news and information like [the wiring scam] that may affect your real estate transaction,” said NAR Legal Counsel Katie Johnson.
Consumers can find a Realtor specializing in Northern Utah by visiting NWAOR.com. Ask them about more tips for avoiding Real Estate cyber scams and how they can help you navigate your home buying process.
For more information about Nilson Homes please vist www.nilsonhomeutah.com
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