Real Estate Tips April 26, 2023

Best Practices To Avoid Wire Fraud

Wire fraud is a serious issue in real estate transactions, and it’s important to take steps to protect yourself from this type of fraud. Here are some best practices to help you avoid wire fraud in a real estate transaction:

  1. Verify all wire transfer instructions: Before sending any wire transfer, you should always verify the wire transfer instructions with the recipient. Call the recipient using a phone number you know to be legitimate and confirm the wire transfer instructions.
  2. Beware of email phishing scams: Fraudsters often use email phishing scams to obtain your personal information. Be wary of any email that requests you to provide personal or financial information. Always double-check the sender’s email address and domain name to ensure it is legitimate.
  3. Use a secure email service: It’s important to use a secure email service to send sensitive information related to the transaction. You can also use an encrypted email service to ensure that your messages are not intercepted by hackers.
  4. Don’t use public Wi-Fi: Public Wi-Fi is not secure and can be easily hacked. Avoid using public Wi-Fi networks to send or receive sensitive information related to the transaction.
  5. Work with a reputable real estate agent: A reputable real estate agent will take steps to protect you from fraud. They will work with you to ensure that all wire transfers are secure and legitimate.
  6. Use a title company: A title company can help you with the closing process and ensure that all wire transfers are secure and legitimate. They will also have a lot of experience in dealing with wire fraud and can provide valuable guidance.
  7. Be suspicious of last-minute changes: Be cautious of any last-minute changes to the wire transfer instructions. If you receive a request to change the instructions, verify it with the recipient through a trusted communication method.

By following these best practices, you can reduce your risk of wire fraud during a real estate transaction.