Safeguarding Your Property: How To Avoid Real Estate Escrow Fraud

The Expert Podcast

How the Scam Works:

• When buying a house, you need to transfer funds to a title or escrow company.
• The title company holds the funds and the deed, ensuring a secure exchange between buyer and seller.
• Scammers hack into emails related to the transaction, monitoring communication between buyers, sellers, and agents.
• At the right moment, they send a fake email, appearing to be from the title company, with fraudulent wiring instructions.
• The email looks legitimate, containing correct details such as the title company’s name, logo, amount, and transaction information.
• Buyers wire the money, unknowingly sending it to scammers, with little to no chance of recovery.

How to Protect Yourself:

• Verify Wiring Instructions:
  • Walk into the title company in person to get the wiring instructions on their letterhead.
  • Test the Transfer:
    • Wire a small amount first (e.g., $10, $100, $1,000).
    • Go back to the title company to verify they received it.
    • Once verified, wire the full amount.
  • Avoid Phone Verification:
    • Scammers can fake phone numbers. Always verify in person.

Additional Tips:

• The process may require multiple trips, but it’s worth the extra effort to secure your funds.
• Real estate professionals can access free checklists and resources to help prevent these scams.

Call to Action:

• Resources: Check the link below for more detailed instructions and checklists.
• Explore More: Browse our channel for related videos and information that might help you with other real estate or cybersecurity issues.