Wire Fraud - Making sure your money is safe!

The FBI reports a rise in wire fraud schemes, with criminals becoming more skilled at executing these attacks. Today’s fraudsters often use professional-looking emails—complete with proper grammar and email signatures—and various non-email methods such as phone calls, text messages, and chatbots. While these scams require minimal technical skill, they’ve become increasingly convincing. Tools like phishing kits are widely accessible, enabling attackers to craft highly persuasive scams.

How Does Real Estate Wire Fraud Happen?

In a typical scenario, a cybercriminal compromises an email account using malware. This allows the fraudster to monitor communications and potentially send fraudulent messages. Often operating overseas and beyond the reach of U.S. law enforcement, these criminals exploit moments of trust and urgency in real estate transactions.

It’s a serious threat, but by staying vigilant and following these steps, you can protect yourself from wire fraud.

Step 1: Establish Trusted Contacts Early

At the start of your real estate transaction, obtain verified contact information for your Realtor, Lender, and Title Company. Stick to these trusted phone numbers and email addresses throughout the process. Verify that any messages you receive align with this information. Be cautious about phone numbers or contact details appearing in emails, especially if they differ from what you initially received in person. Sophisticated scams often include convincing fake email correspondence.

Step 2: Understand the Process and Stick to It

Legitimate title companies will never email wire instructions. For example, Title often provides wire transfer details only via fax or snail mail. Always verify instructions with the title company by contacting the trusted number you obtained from your Realtor earlier.

Pro Tip: Indiana's Good Funds Law states if you need to bring more than $10,000 to closing, a wire transfer IS REQUIRED.  Reach out to your title company for guidance well in advance.

Step 3: Stay Alert to Changes

Most reputable title companies never change wire instructions. If you receive an email or message claiming otherwise, it’s fraudulent. Call your title company immediately to confirm any instructions. Be wary of follow-up calls or emails that claim to validate a fraudulent message—these are common tactics used by scammers.

Remember, changes to wire instructions, email addresses, or phone numbers are extremely rare. Approach any such changes with suspicion and verify them with a direct phone call to your trusted contact.

Step 4: Recognize Timing as a Key Factor

Scammers often strike in the final weeks before closing when homebuyers are busy and distracted. They send “urgent” emails pressuring buyers to “act immediately” or “rush delays.” These are clear red flags. Title companies won’t rush you for wire transfers. Fraudsters may also claim there’s been a “change of plans” requiring a down payment before closing. Never respond hastily; instead, verify any such requests with a phone call.

Act Quickly if You’re Targeted

If you fall victim to wire fraud and authorize a fraudulent transfer, recovering your money can be challenging. Acting swiftly is crucial. Reporting the incident immediately may increase the chances of retrieving some or all of your funds.  The FBI can initiate its Financial Fraud Kill Chain (FFKC) process to help recover funds from international wire transfers if reported within 72 hours. You will also need to contact your local police department and file a report. This step is essential for both legal and insurance purposes.

Protect yourself and your investment by staying informed and vigilant. Criminals rely on distraction and urgency—don’t let them take advantage of you.

Tim Vicsik
RE/MAX 100
Tim@TimVicsik.com
www.ND-Condos.com
(574) 329-9587