Real estate transactions involve large sums of money, so fraudsters commonly make wire transfers their target.
Wire transfer fraud is when a scammer deceives a client into transferring funds to them, usually by acting as a member of your firm. Scammers use email phishing to send fake directions to clients, instructing them to wire the funds immediately. Unfortunately, some victims don’t realize they have been scammed until too late.
To prevent wire fraud, you must be able to identify common wire transfer fraud scenarios.
Types of Wire Transfer Fraud
Scenario 1: An Email Message from a Different Email Address
- Our firm experienced this scenario recently; a scammer created a new email address (i.e., attorneyname@berllnpatten.com). The email is very similar to our company email, but they misspelled “berlin” to redirect the emails to themselves. They infiltrated our client’s computer and email to obtain the wiring information. Luckily, our client noticed the incorrect email address and notified us immediately.
Scenario 2: The Email Message Is Missing its Usual Warnings or Signature
- Most firms (including BPE) will have a warning at the end of every email message, alerting clients about wire fraud and sending private information. You should be cautious if you receive an email from your firm or agent that does not include this warning. You should also see if the message contains the attorneys/agent’s usual signature.
Scenario 3: An Email Message with New Transfer Instructions
- What happens if you have already received instructions from your agent and receive a message with “new” directions last minute? This is probably the most apparent sign of wire fraud. Agents rarely change the instructions at the last minute and will usually give you a heads-up before doing so.
How Do I Protect Myself Against Wire Fraud?
Wire transfer fraud is the fastest and easiest way for cyber criminals to score huge sums of money from unsuspecting clients, and it will not stop anytime soon. According to the 2022 FBI Internet Crime Report, Florida ranked 2nd in the U.S. for the largest number of internet crime victims. So how can you protect yourself? We have blogged on this topic before here and here and have provided some advice on things you should watch out for. If you have any questions, don’t hesitate to contact your local real estate attorney.
