Buying a new home is an exciting time that should be celebrated and enjoyed. Unfortunately, some sour apples might try to ruin this joyous milestone for you. It is important that as you work through the home buying process, especially once you are in escrow, to stay vigilant of potential wire scammers and fraudsters.
One of the most common financial scams that homebuyers face is wire fraud. Scammers will send an email posing as a title or escrow company to the homebuyer. The email will include fraudulent wire instructions asking to transfer the closing funds to a specific account – which is how they steal the money. The email will look very convincing so it is prudent that you take steps to avoid falling for these scams.
For starters, be sure you know what Escrow and Title Company is handling your transaction. It is extremely rare for an escrow or title company to change once you have started your transaction. Be incredibly wary if you receive an email from a different or random company you have not heard mentioned before. If you do get any communications from a different company be sure to immediately call your real estate agent and mortgage lender. Confirm with both of them before sending any information or money.
It is also extremely rare for wire instructions to change during a real estate transaction. When you get wire instructions from an escrow or title company, call them directly and confirm the information over the phone.
Don’t just call the phone number that was on the email either. Ask your real estate agent or mortgage lender to confirm the escrow/title’s contact information for you. Once you have confirmed this, hold on to them. You will use the same instructions for both your earnest money deposit and your down payment/cash needed to close. If you receive new wire instructions for any reason, that should be a red flag and should immediately be reviewed.
It can be tedious to take these extra steps to confirm the wire instructions but it is important. If your funds are sent to the wrong place, it can be extremely difficult or even impossible to get back. If you believe you have fallen victim to wire fraud, call your bank immediately and request a wire recall. Sometimes they are able to get the money back if you are quick enough. Also, file a complaint with the FBI and provide as much information as possible and they may be able to help.
