Phishing, hacking, wire fraud – these are all ways people attempt to steal from others online. As real estate searches and transactions move more and more online, the chances of being caught up in a cyber scam have become even greater.
By now most people have heard of the Nigerian prince scams or phishing emails asking for social security or banking information, but many people don’t know that they need to watch out for possible scams when buying or selling their home.
Cybercrimes have become increasingly sophisticated and the people perpetrating them focus on situations where a lot of money is changing hands, making real estate transactions an ideal target.
The National Association of Realtors® recently warned its members and consumers about one example: a wiring scam during the closing stage of the home buying and selling process. Hackers will break into the email accounts of consumers and real estate professionals to get pertinent details of a real estate transaction. The hackers will then send an email posing as the buyer, seller, real estate agent/broker, closing officer or other key players involved in the closing process. The content of the communication from the hackers has typically been a last-minute change and they provide new wiring instructions. Unbeknownst to the victim, the new instructions redirect the closing costs and funds into the hacker’s bank account.
While it may seem like there are hundreds of ways for a criminal to take advantage of a consumer online, there are just as many ways consumers can protect themselves. Here are a few tips to help home buyers and sellers recognize and avoid real estate scams:
Do not send sensitive information via email. Do not send banking information, your social security number or anything else that could be used to comprise your identity over email. If you absolutely must send personal or sensitive information via email, only use encrypted email.
Do not click on unverified email. If you do not recognize the name or email address of the sender, do not open the email. And beware of any attachments or downloadable files from unknown email addresses; they can contain viruses or provide a way for a hacker to access your computer.
Do not use unsecured Wi-Fi. It may seem harmless to check banking information using the free Wi-Fi at your local coffee shop, but using an open connection can leave you vulnerable to hackers and scammers. Only access sensitive information on your home computer or on a secured network.
If you suspect fraud, tell someone. If you suspect that fraud has or is in the process of occurring, contact all parties connected to the transaction immediately. Unfortunately, often there is nothing that can be done to retrieve money stolen in the scam, however, you should still report the incident to the FBI’s Internet Crime Complaint Center or the Federal Trade Commission.
For more information on how to safely and securely buy or sell a home, speak with a Realtor. Find one at www.KCRealtorLink.com.