Wire fraud in real estate transactions is something that all home buyers and sellers should be aware of. It involves scams that use electronic communications to deceive individuals into transferring funds to the wrong bank account. With technological advancements, this crime has become more common in recent years. Particularly in real estate, where large sums of money are regularly exchanged.
The Impact of Wire Fraud on Real Estate
Wire fraud can cause significant financial loss, delay transactions, and lead to potential legal implications. Buyers and sellers can find their hard-earned money suddenly diverted to an unknown account, often irretrievable due to the speed of electronic transfers.
Wire Fraud Tactics
Fraudsters typically pose as real estate agents, lawyers, or financial institutions using convincing fake email accounts and information. They send false instructions to change the payment type or direct funds to a different bank account than the legitimate one.
How Your Real Estate Agent and Attorney Can Help
The good news is that you can significantly reduce the likelihood of wire fraud by simply communicating with your real estate agent and attorney for verification. Contact them to conduct a final check before finalizing any transfer of funds. Furthermore, if you are unsure about any email communication you receive about the transaction – it’s important to let them know before opening or responding to it.
Hiring a Real Estate Attorney to Mitigate Wire Fraud Risk
To mitigate the risk of wire fraud, consider hiring an experienced real estate attorney. They can help secure transactions, verify communications, and guide you through the legal complexities of real estate transactions. An attorney provides an added layer of security against potential wire fraud attempts.
Need professional help to safeguard your transaction? Contact Riley & Gutman today. With our extensive experience in real estate law, we’re equipped to provide an excellent level of service.