Loans & Security

3 Tips to Avoid Wire Fraud

Leslie Heimer, Sr. Lending Partner

22 August 2017

Wire Fraud is a very real threat in Real Estate transactions today and millions are lost each year according to the National Association of Realtors.

Once achieved, the Hacker sends an email to the Buyer with new wiring instructions due to a change.  They pretend to be the title agent or closing representative and send the victim new banking information that directs them to wire their down payment and/or closing monies to the criminals account.   This crime is especially disheartening when many loose savings, and can set off a chain reaction of victimization.

Top 3 Tips for Avoiding Wire Fraud:

  1. Refrain from Using Public Wifi

Never use a public or unsecured wireless network, when sharing sensitive documentation. These open sources do not require a password and have little cyber security measures in terms of encryption. Connecting to the internet through this open network can put your machine or mobile device at a greater risk of being compromised.

Never wire funds without first calling the intended recipient by telephone to confirm the information provided.

2.  Verbal Verification with Escrow Agent

Before authorizing a wire transfer, research the phone number of your title company and call directly to verify the wiring instructions, time and date and bank routing information. After the wire is complete, call again to confirm fund have been received. Do not accept wiring instructions from anyone other than your escrow agent and be suspicious of any emails that direct otherwise. Look carefully at email communications and do not rely only on email instructions

3.  Lender Security Measures

Ensure your Lender has the latest in email encryption software and implements the highest protective measures and best practices in their cyber security efforts.  Always use secure portals when uploading or sharing personal digital documentation and check the Better Business Bureau and even local Chambers of Commerce to verify email addresses or professional endorsements. Without the latest in technology, it can be nearly impossible to prevent fraud attempts. Trust American Liberty Mortgage with your home financing. Our company boasts today’s tightest controls in IT infrastructure and cyber security measures.


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