10 Ways Scammers Target First Time Home Buyers
You did the work, save the money, choose the right house, and now you are ready to close on your new home. The movers are schedule and you cannot wait until the final document is signed and you receive the keys to your new home. With so much going on, it’s easy to get a bit distracted.
Scammers count on this distraction to get your attention to scam you out of your closing money. It maybe that you receive a phone call, text message, or email letting you know the wiring instruction has been changed.
You are so excited about your closing that you did not realize the text or phone call came from a number that you did not recognized. Something about the email you received was just a bit off, but you did not notice it. The email address had the correct title company’s name, but instead of dot com, it had dot net and you missed it.
Following their instruction, you wire your closing money, using the new wiring instruction, right into the scammers pocket. You will never see that money ever again. With wire fraud, scammers strike when you least expect it.
They know the home buying process can be a bit overwhelming, especially for first time home buyers and they are always ready to exploit it. However, you do not have to become a victim of wire fraud. Here are 10 things to know about wire fraud and a few steps to avoid being scammed.
First time home buyers are more likely to be targeted by wire fraud scammers.
The American Land Title Association, said more than half title companies and their agents receive at least one phishing email a month with fraudulent wire instruction.
Scammers use fake emails, fake phone numbers, and fake websites to impersonate trusted real estate professionals and title companies.
The scam usually begins when you are in the final states of your home buying process.
Scammers use “phishing” to gain access to into your email account or the title company email account. ( Phishing is where attackers deceive people into revealing sensitive information.)
Upon gaining access to your email account, they can monitor messages such as legitimate emails you receive from the title with closing instructions.
Once they steal the information from your email, they can use the stolen information to send you fraudulent wire transfer instructions.
If a title company’s secure email is hacked, even the most tech-savvy home buyers may be fooled.
Scammers are known to use the closing company’s email address that look legitimate, including the use of the company’s logo, domain name, website and email signature.
The email address might be very similar to the title company’s but just different enough that you may not notice.
Here are a few steps to avoid getting scammed out of your closing money. Never respond to any email or text messages that inform you of changes the wiring instructions. Always call the title company immediately to verify any changes. Also, watch out for any communications, by phone, text, or email telling you that the method of payment and title company address has been changed.
Any communication informing you that the title company has changed their email address and phone number should not be responded to. Call the title company right away. Do not accept any changes to the wiring instruction unless you verify it directly with the title company and your Realtor.
Do not send a text or use the same email address that advised you of the change. You will need to call the title company and your Realtor directly. Remember, if you are not sure about something you can always call the title company or your Realtor.
We at First Home Houston is always looking out for your best real estate interest. As always, we thank you for stopping by. Until next time… Diana.
