Wire Fraud Is Real

I want to share my experience as a warning to everyone. Two days before closing on my refinance, I got an email from what I thought was the title company. It said we were clear to close and gave wire instructions, asking me to send the funds that day because of delays. I was in a rush to catch a flight, so I made a mental note to handle it later. The email looked legit, with the title company’s letterhead and everything, including a Capital One account for the transfer.

But while I was on the flight, I got another email from my loan processor asking for more documents. I was confused and annoyed; didn’t the title company just say we were good to go?

When I asked about it, she told me we were NOT clear to close and asked me to forward the email. That’s when I noticed the email was from a Gmail account, not the title company’s official email.

I’m really shaken thinking about how close I was to making a HUGE mistake today. If I hadn’t gotten that second email from the loan processor, I might have sent the money without realizing it was a scam.

Please be careful, everyone.

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I hear about two or three people in my town getting burned by it every year.

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Always call the title company using the phone number from their official website or a verified source to confirm instructions before wiring.

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It’s crazy that most companies still don’t allow the use of bank-certified checks. I’m in the car business, and you wouldn’t believe how much fraud happens with wire transfers. Once they’re processed, there’s no recourse. When I closed on my mortgage in May, I specifically requested to use a bank-certified check.

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How do these scammers know when you’re about to close on a real estate deal? Could it be an inside job? Maybe some dishonest employees at the mortgage or title company?

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They gain access to unsecured email accounts, often those of agents using free services, and quietly monitor the emails. Once they have the necessary information, they send a spoofed email to the party transferring the funds.

Change your passwords, everyone.

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…and generate passwords that are long, with 16 or more random characters. Ensure they are updated frequently.

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Once a mortgage company checks your credit, other companies might purchase that information and try to convince you to switch lenders. This is a common tactic, but you can avoid it by opting out at www.optoutprescreen.com. It’s a good idea to do this before having a lender pull your credit to avoid scam calls and protect yourself.

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I’m not sure why you’re being downvoted. I had a similar experience; after my credit was pulled, I began receiving texts from various lenders.

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I’m not entirely sure either, but it is definitely legitimate and managed by the credit bureaus. It’s a solid way to safeguard yourself.

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Credit offers differ significantly from wire fraud scams. Opting out won’t protect you from falling victim to business email compromise.

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They determine who is about to close by sending out emails approximately 30 days after the initial pull. If you choose to opt out, you won’t be included in the list of individuals nearing a home purchase.

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This isn’t directed at the original poster, but I believe that anyone applying for a mortgage (and using email for related communication) should be required to receive training on how to recognize phishing emails.

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I understand that you didn’t intend for this message to be directed at me, but it still had a significant impact on me. Part of my job involves handling phishing and fraud scams, and I even wrote the training you’re referring to. If someone as knowledgeable as I am could almost fall for this in a moment of weakness and haste, what chance does my 80-year-old mother have?

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It can happen to anyone, especially if the situation is more advantageous. At least you didn’t end up sending that money.