A client of mine recently fell victim to wire fraud due to a case of business email compromise (BEC), a term the FBI has so kindly coined. No matter how often Realtors remind our clients of the dangers of wiring money, in the midst of moving quickly, being under stress to close escrow on time, and planning your next steps upon closing, it is easy to comprehend how one might overlook the warning signs of BEC and forego calling to verify wire transfer numbers with the source. I am happy to report that my client recovered her $260,000 fraudulent wire deposit, but in many cases the money is lost forever.
There are two types of wire fraud: 1) unwitting wire fraud, which typically happens when a criminal manipulates you into wiring your funds into their account, and 2) bank account takeovers and stealing funds through hacking. Both are incredibly violating, invasive, and awful to experience, so here are some helpful tips on protecting yourself:
- When wire instructions are sent to you via email, always call to verbally verify the wire transfer numbers, no matter who sent it and regardless of the situation described over email. In all real estate transactions, the only entity that handles money and wire instructions is the Escrow Officer, period.
- Change your passwords often, especially to business email accounts, credit card and online banking accounts, and NEVER store login and password information on your electronic device.
- Keep a watchful eye for phishing emails, which usually contain links or attachments. It only takes one click for a hacker to have full access.
- Bank with well-known financial institutions that keep your accounts safe by staying up-to-date on protections against scammers and hacks, as these criminals find new and creative ways to hack your system and steal your life savings all the time.
Here are services that can help safeguard your login and passwords, and keep them all in one place:
This recent scare has me feeling very passionate about this subject, so please call me at 415.841.2118 for more information on what to do if you become a victim or if you want to learn more about protecting yourself and your future.
Ashley Henderson-Condon
[email protected]
