Welcome back!
Open a New Account Check Application Status Apply for a Loan Apply for a MortgageWelcome back!
Open a New Account Check Application Status Apply for a Loan Apply for a MortgageFraudsters are always looking for new ways to take advantage of consumers. One of the latest schemes involves targeting individuals who are in the midst of purchasing a home. The nature of the real estate closing process is often hurried. The fact that email is a commonly used method for providing legitimate instructions for sending funds at closing makes this scam attractive to fraudsters.
What is Mortgage Wire Fraud?
This scam operates by the fraudsters convincing a borrower to wire funds into an account controlled by the fraudsters. Posing as a trusted party (e.g. legitimate settlement or real estate agent) during the home buying (or refinance) process, a fraudster will send “updated” wire transfer instructions to the borrower. The borrower, expecting to receive wire instructions to facilitate the closing process, unwittingly sends the funds to the fraudster.
Often, scammers will replicate trusted email addresses and phone numbers, through a technique called ‘spoofing’. Spoofing makes it appear that the phone call or email is coming from a company (or person) that you know and trust, so that you will not question the updated instructions. The scammer usually provides some type of excuse in the email: e.g. that the bank account number has changed, or that there has been a mix-up in instructions or details, and they will often mention that they are unable to be reached by phone or to contact them at an alternate phone number or email.
Convinced that the wire instructions originated with a trusted party, borrowers will send the wire transfer to the fraudster’s account. Unfortunately, this fraud is discovered when the title company or closing agent informs the buyer that they did not receive the anticipated funds.
Below are ways to protect yourself against this type of complex fraud.
How you can avoid becoming a victim of Mortgage Wire Fraud: