How Email Fraud Works
Scammers continue to target real estate professionals, seeking to compromise their email accounts to monitor correspondence with clients and identify upcoming real estate transactions. During the closing process, scammers send spoofed emails to homebuyers posing as the real estate agent, settlement agent, legal representative or another trusted individual with false instructions for wiring closing funds.
How to Avoid Mortgage Phishing Scams
- Identify two trusted individuals to confirm the closing process and payment instructions. Ahead of your mortgage closing, discuss in person, or by phone, the closing process and money transfer protocols with these trusted individuals (Realtor®, settlement agent, etc.). Be cautious about exchanging any details about your closing over email. You may want to use this opportunity to also create a code phrase, known only by these trusted parties, if you need a secure way to confirm their identities in the future.
- Write down their names and contact information. Use the Consumer Finance Protection Bureau’s Mortgage Closing Checklist to list these individuals and their primary phone numbers.
- Before wiring money, always confirm instructions with your trusted representatives. Never follow instructions contained in an email. Verify the closing instructions, including the account name and number, with your trusted representatives either in person or by using the phone number you previously agreed to.
- Avoid using phone numbers or links in an email. Again, scammers can closely replicate the email address, phone number and format of an exchange from your agents. Avoid clicking on any links or downloading attachments without first confirming with your trusted representatives.
- Do NOT email financial information. Email is never a secure way to send financial information.
- Be mindful of phone conversations. Identifying whether a phone call is fraudulent or legitimate may be difficult. Scammers may call and ask you to verify your personal or financial information. When in doubt, always refer back to your trusted professionals to confirm whether it’s legitimate.
What to Do if It Happens to You
- Contact your bank or wire transfer company immediately. Ask for a wire recall. Reporting the error as soon as possible can increase the likelihood that you’ll be able to recover your money.
- Contact your local law enforcement.
- File a complaint with the FBI. Contact the FBI’s Internet Crime Complaint Center at www.ic3.gov.
From the Consumer Financial Protection Bureau’s “Mortgage Closing Scams: How to protect yourself and your closing funds.”
