Preventing Fraud

Buying or selling a home can be a complicated process that involves many financial transactions. Unfortunately, this also makes it a prime target for fraudsters. From wire fraud to fraudulent emails that try to obtain personal information, there are many ways in which criminals can scam homeowners and buyers. In this article, we will discuss the different types of fraud that can occur during a home sale and provide tips on how to protect yourself.

Wire fraud

Wire fraud is one of the most common types of fraud that occurs during a home sale. This happens when a criminal intercepts an email between the buyer and seller that contains wire transfer instructions. They then change the information in the email to divert the funds to their own account. This can be devastating for both the buyer and the seller, who may lose thousands of dollars.

Protect yourself from wire fraud:

• Verify all wire transfer instructions with the other party through a phone call or in person before sending any money.
• Avoid using public Wi-Fi networks when sending sensitive information.
• Use strong passwords and two-factor authentication to protect your email accounts.
• Be wary of any email that requests a wire transfer and double-check the sender’s email address to make sure it’s legitimate.

Fraudulent emails

Fraudulent emails are another common way that criminals try to scam homeowners and buyers. These emails often look like they come from legitimate sources, such as the buyer’s real estate agent or the title company, and ask for personal information, such as bank account numbers or Social Security numbers.

Protect yourself from fraudulent emails:

• Be suspicious of any email that asks for personal information.
• Do not click on links or download attachments in emails from unknown senders.
• Check the sender’s email address to make sure it’s legitimate.
• If in doubt, call the sender to verify the email’s authenticity.

Fraudulent Listings or Rentals

Housing is in short supply with the high demand in many major cities. Scammers have found another way to scam people by creating listings for properties that are not available, with the intention of deceiving potential renters or buyers and stealing their money. This type of fraud can have serious consequences for the victims, who may lose significant amounts of money or personal information.

To protect yourself from this and other types of fraud:

• Use a reputable real estate agent who has experience in handling home leases and sales.
• Research any companies involved in the home sale, such as the title company or mortgage lender, to make sure they are legitimate.
• Be wary of any unsolicited phone calls or emails offering mortgage or home repair services.
• Shred any documents that contain personal information, such as bank statements or tax returns.

In conclusion, protecting yourself from fraud during a home sale requires vigilance and caution. By following the tips outlined in this article, you can reduce your risk of falling victim to wire fraud, fraudulent emails, and other types of scams. Remember to always be skeptical of any request for personal information or wire transfers and to verify the authenticity of any emails or phone calls before taking any action.

If you have questions about fraud, contact us so we can get you in touch with experts in this field. Call us at 407-496-6879 or 321-947-5573.