The American Land Title Association (ALTA) sent a letter to the Consumer Financial Protection Bureau (CFPB) and requested that it issue an alert warning consumers about wire fraud schemes that try to steal funds for real estate closings.
Title companies would prefer federal assistance to tackle wire fraud
“Despite efforts by the title industry and others to educate consumers about the risk, home-buyers continue to be targeted,” says Michelle Korsmo, ALTA’s chief executive officer. “With the spring home buying season underway, it’s vital to continue raising awareness about these schemes. The CFPB should take this opportunity to protect consumers from criminals looking to steal their money.”
According to ALTA, the alert should provide tips on how consumers can protect themselves and questions to ask that can help evaluate if real estate professionals have measures in place to protect their funds.
ALTA has educated its members over the past few years about these wire fraud schemes, however the best defense is to inform consumers regarding the danger.
“Unfortunately, these criminals frequently target home-buyers prior to the title company getting involved in the transaction,” Korsmo says. “In many instances, they obtain access to unsecure email accounts used by consumers or real estate professionals. They use this access to find transaction patterns and details to make their fraudulent communications seem legitimate. The criminals will instruct the buyers to send the funds to a different account and the money vanishes in minutes.”
This is becoming more frequent. We as REALTORS receive emails from agents we have worked with in the past with some headline concerning a transaction that we are not involved with, asking us to verify. Those get deleted immediately.
Our best suggestion is when you are involved in a real estate transaction, prior to sending any money. Contact your REALTOR. Who will contact the Title Company handling the closing for you. These emails typically are secured. But again before opening and or wiring funds. Verify with your REALTOR or the Title Company handling your closing.
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