Real estate involves a massive sum of money, making it a potential target for wire fraud and numerous other real estate illegalities. Whether as a real estate buyer or seller, you need to get yourself acquaint with these real estate frauds and common ways to protect yourself.
The complexities and rigorous processes involved in real estate deals make virtually all the parties involved vulnerable to these scams. According to real estate experts, referrals are the most trusted sources as it minimizes cases of fraud.
Types Of Real Estate Fraud
- Wire fraud
This type of fraud revolves around the closings when both parties are about to finalize the deal. The real estate lawyer could most commonly be the type that uses the same password for all his accounts. When a bad guy manages to access an account, the hacker can use the same password to access email.
Once they are in, they search for emails with phrases like ‘offer is accepted.’ They send a mail to the buyer, instructing them to make a payment to a shady account. Before the buyer could understand what has happened, the hacker is gone.
To avoid this kind of scam, call the real estate agent to confirm the mail before making any transfer. If possible, contact the Title Company or lender to ask if they send the mail. If they didn’t, you would know at the spot.
- Identity Theft
You’d be surprised the length cybercriminals can go to steal your information. When they have your information, be ready for a long game. How this plays out is often interesting, and it usually when a data breach occurs. Most smart cybercriminals won’t do anything for six months when they gain access to your email.
The wait is often to gather enough data about you, and there are chances of getting your social security number while monitoring. A way around this is to always be at alert and not rely heavily on emails.
Before you start that real estate deal, make it a duty always to change your password as a precautionary measure. You might never know what could be lurking around the corner.
- Title Fraud
If you deal with a reliable title company, you should be protected from this sort of scam. But on the other hand, title companies are not the same in terms of competence and reliability. In that case, you need to be cautious.
Just like emails, you’re not to rely heavily on them as they could fail. If you want to make sure you don’t ever fall into this type of real estate fraud, then a personal referral for lenders and title companies is best. No doubt, the recommendation is because they are reliable and competent.
Conclusion
If you want to protect yourself from real estate fraud, you should never be in haste. Before you take action, confirm through a phone call. Remember, it is your money on the line, and you want to make sure you don’t lose it.