With the increased reliance on electronic communication and monetary wire transfers, criminals have been scamming homeowners. They pose as mortgage or title companies and steal downpayments and mortgage payoffs. In most cases, there is no way for authorities or financial institutions to recover any of the stolen funds. Here are a few important steps you can take to prevent such a situation from happening to you:
- Use the Phone
Do not send personal or financial information over email. If you need to communicate with the title company, call the number on their business card or website. - Be Suspicious
If you do receive an email from the title company, be careful. Do not click links in the email. Instead, type the desired URL into the address bar yourself. Be on the lookout for misspellings and poor grammar, as well as incorrect email addresses. These could be very slight differences such as a space in the address: “bob@email.com” vs. “bob @ email.com.” Another sign of a fraudulent email is a Gmail or Yahoo address. Reputable title companies have emails at their own website. You should also be suspicious if you receive an email with a last-minute change in wiring instructions. - Confirm Everything
Call the title company to confirm wiring instructions prior to the wire. Have the bank confirm the account numbers and name on the account. Once the transaction is completed, immediately call the title company again to ensure they received the wire.
Learn more about how to protect yourself from wire fraud here.