I thought that this recent article sent to Real Estate agents would be of interest to the general public.
Cybercrime Hitting Real Estate
By Jessica Edgerton
Online criminals are targeting the real estate industry and
stealing large sums of money from unwary homebuyers. This fraud can destroy
real estate transactions, so the National Association of REALTORS® is urging
real estate professionals across the country to immediately implement safety
measures to reduce the risk of becoming a victim.
In a typical scenario, a criminal
will hack into the email account of a person involved in an upcoming real
estate transaction. The hacker will then send a sham email to the buyer, or
another individual who will be wiring transaction-related funds. The email will
state that there has been a last-minute change to the wiring instructions.
Following the new instructions contained in the email, the recipient will then
wire the money directly to the hacker’s account, which will be cleared out in a
matter of minutes. The money is almost always lost forever.
Most email users today can easily
recognize the email scams that are rife with poor spelling and grammatical
oddities. In contrast, the fraudulent emails being utilized in this wire scam
are virtually indistinguishable from legitimate communications. Because hackers
are gaining access to the email accounts of individuals directly involved in
the transaction, they’re able to include detailed information in their
fraudulent emails, including key names, dates and mocked-up signature lines.
There are a number of measures that
real estate agents and others involved in real estate transactions can take to
help keep themselves and clients from falling victim to this crime. First, from
the outset of any deal, inform all parties to the transaction of this scheme to
ensure that everyone stays alert to suspicious activity. Second, request that
all parties implement reasonable security practices throughout the course of
the transaction, such as only using confirmed telephone numbers or face-to-face
communication to share sensitive financial or personal information. As a final
failsafe, immediately prior to wiring any money, the person initiating the wire
should call the intended recipient via a verified telephone number to confirm
the wiring instructions.
Other important steps to avoiding
exposure to email fraud include:
- Never conduct business over unsecured WiFi.
- Clean out email accounts on a regular basis.
- Change email passwords on a regular basis.
- Implement complex passwords with a combination of letters,
numbers and special characters.
- Implement the most up-to-date firewall and anti-virus
technologies.
If a fraudster has successfully
infiltrated a transaction, NAR recommends the following steps:
- If money has already been wired via false wiring
instructions, immediately call all banks and financial institutions that
could possibly put a stop to the wire.
- Contact your local police.
- Contact all parties who may have been exposed during
the attack so that they take appropriate action.
- Change all passwords.
- Report the activity to the FBI via their Internet Crime
Complaint Center.
This advice is not all-inclusive,
and real estate practitioners should work with information technology and
cybersecurity professionals to ensure that their email accounts, online systems
and business practices are as secure and up-to-date as possible.
This column is brought to you by the
NAR Real Estate Services group.
Jessica Edgerton is associate
counsel, Legal Affairs, for the National Association of REALTORS®.
Labels: precautions in real estate transactions, Real estate crime
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