FTC issue warning-mortgage closing cost phishing scheme
According to the FTC and NAR, scammers are hacking the email accounts of customers and real estate professionals to obtain information about upcoming real estate transactions.
Once they have access to the consumers or real estate professionals’ email account, the hackers ascertain the closing dates.
Then, the scammers send an email to the buyer, pretending to be the real estate professional or title company, stating that there has been a “last minute change” to the wiring instructions.
The scammers’ email instructs the buyer to sent the funds to a different account, which belongs to the scammers.
According to the FTC, if the buyer takes the bait, their banking accounts could possibly be cleared out in a “matter of minutes.”
The FTC also said that often time, the client will never see that money again.
“If you’re purchasing a home and get an email with money-wiring instructions, STOP,” the FTC tells consumers in its bulletin. “Email isn’t a secure way to send financial information, and your real estate professional or title company should know that.”
NAR President Tom Salomone urged homebuyers to be cautious throughout the home buying process.
“Buying a house should be an exciting event, but sadly an email and money-wiring scam is underway targeting consumers’ sensitive financial information,” Salomone said .
“We’re working with the Federal Trade Commission to shine a bright light on that criminal activity and help protect prospective homeowners,” Salomone said. “Buyers need to be wary of sending financial information over email, downloading attachments, or responding to email requests to wire funds in a real estate transaction.”
The FTC also provides several tips for consumers to avoid falling victim to phishing schemes such as this one, including:
Do not email financial information. It’s not secure.
If you’re giving your financial information on the web, ensure the site is secure. Search for a URL that starts off with https (the “s” stands for secure). And, instead of clicking a link in an email to go to an organization’s site, look up the real URL and type in the web address yourself.
Be cautious about opening attachments and downloading files from emails, no matter who sent them. These files can contain malware that could weaken your computer’s security.
Keep your operating system, browser, and security software current.
We can say personally that we have received emails like this from other agents (fake) email addresses speaking about transactions that we had already completed so we have a rule. Ask before clicking on it. Most lenders like the ones that we use have secured email systems and the email must be logged into when the lender sends anything to the borrower. If you want us to assist you in your next home purchase. We are always just a click here or call to 813-300-7116 away.