Fraudsters targeting transactions continues to be a nationwide problem

It’s time to talk about the dangers of wire fraud again. For years, those of us in the title industry – and those adjacent to title (Looking at you, notaries) have spread warnings about cybercriminals targeting our real estate transactions. However, the messages are still not getting to everyone who needs to hear them.

That’s the conclusion of a recent survey from CertifID, one of the leading voices on fraud in real estate. Its State of Wire Fraud Report unveiled a stark reality within the real estate sector today. The bottom line is that the crime doesn’t just undermine the integrity of real estate transactions; it also burdens consumers and businesses.

Here are a few reasons why real estate transactions are such an attractive mark for scammers:

• The sheer amount of money involved in a single transaction.
• Because there are so many parties involved in closing a deal, fraudsters can often find a weak link.
• These scams are successful. According to FBI statistics, the real estate sector lost $446 million to these cybercriminals in 2022. 

A concerning revelation from the report indicates that a significant portion of consumers – approximately 60% – say they receive little to no education on the perils of wire fraud before their closing. This lack of awareness is alarming, as the real estate industry is a prime target for fraudsters exploiting technological and human vulnerabilities.

What is one of the best things we can do to fight fraud? Keep talking about the danger so we can stop these cybercriminals in their tracks. After all, if a scam stops working, these fraudsters will move on to something else.

1. Be vigilant: Always question email instructions for wire transfers. Scammers often impersonate real estate professionals or financial institutions, and how they do this is becoming smarter and more sophisticated. Verify through direct, independent communication channels before proceeding with any transaction.
2. Remember this message: Now that you know about the dangers of fraud, don’t forget it. Some scammers may be watching you whether you’re buying a home next month, next year or next decade. Seek out resources and insist on receiving education on protecting yourself during the closing process of your real estate transaction. We’re here to answer all your questions on this topic or anything else.
3. Make sure your technology is secure. Use services and platforms that offer enhanced security measures, such as identity verification and transaction protection. However, remain cautious and informed about the tools and solutions you choose to trust. Put multifactor authentication on all your accounts, including email and always be on the lookout.

Simply put, we must unite in the face of this ever-growing threat. Our team takes pride in protecting your transactions, but we need the help of everyone. Together, we can turn the tide against this digital menace and help actively safeguard our customers’ money and peace of mind.