Double Check Before You Wire

In the news a few weeks ago, a Lawrence Man wired $88,338 as the down payment on his home. There is a law suit against the Title Company, Mortgage Company and Real Estate Companies failed to warn him of the scam whereby hackers find out about the transaction, pretend to be some person in the transaction and then email bogus wire instructions. Thinking the bogus instructions are legitimate, the person wires away their money, never to be seen again.

So for all our readers, be sure to warn any buyers or private lenders of the scam and give them some extra steps.

1. Make sure you provide the person doing the wire with a phone number and name of a contact at the title company, preferably over the phone or via text, not in an email.

2. Have person then call the title company for wire instructions, that will hopefully be sent via secure email that is password protected and encrypted.

3. After receiving the instructions, then call the title company or closing agent to verify.

4. And advise them to be very wary about changes in wire instructions as they very rarely change.

And keep in mind that in several cases, title company, mortgage company and real estate company have all be found liable for not making clients aware. So we advise all of our readers in these industries as well as real estate investors selling houses or borrowing fund privately to warn clients of these issues.

Locally, Kansas City Regional Association of Realtors has released a notice to provide to buyers or sellers that their member Realtors can use and anyone could adapt to their own needs. Access the form on our Blog at www.MAREI.org/ WireFraud