The Federal Trade Commission (FTC) Consumer Blog in March issued a post focused on hackers who have been breaking into some consumers' and real estate professionals' email accounts to get information about upcoming real estate transactions. The National Association of REALTORS® (NAR) is urging all REALTORS®, their clients and other real estate professionals to be on high alert for these email and money wiring scams. Attorneys, escrow agents, buyers, sellers, real estate agents, and title agents have all been targeted in these scams.
Criminals are hacking into the email accounts and using information about a real estate transaction gained from the hack to trick owners of these email accounts into a fraudulent wire transfer. After figuring out the closing dates, the hacker sends an email to the buyer, posing as the real estate professional or title company. The bogus email, which appears to be legitimate, informs the recipient, often the buyer, that there has been a last minute change to the wiring instructions and tells the buyer to wire closing costs to a different account, which is actually the scammer's account. If the buyer takes the bait, their bank account could be cleared out in a matter of minutes, and often, the buyer will never see that money again.
The Silicon Valley Association of REALTORS® (SILVAR) shares the following guidance issued by the FTC and NAR to avoid becoming a victim of phishing scams:
• Start from the assumption that any email in your inbox could be a targeted attack from a criminal. If you are buying a home and receive an email from your REALTOR® or title company with money-wiring instructions, do not proceed. Email is not a secure way to send financial information, and your REALTOR® or title company should know that. If it's a phishing email, immediately contact all parties to all of your upcoming transactions and inform them of the possibility of this fraud.
• Do not trust contact information in unverified emails. The hackers will recreate legitimate-looking signature blocks with their own telephone number. In addition, fraudsters will include links to fake websites to further convince victims of their legitimacy.
• If you must use email to send sensitive information, make sure the site is secure. Look for a URL that begins with https (the "s" stands for secure). Instead of clicking a link in the email, look up the real URL of the organization and type in the web address yourself.
• Immediately prior to wiring any money, call the intended recipient to verify the wiring instructions. Only use a verified telephone number to make this call.
• Trust your instincts. If an email or a telephone call seems suspicious or "off," you should refrain from taking any action until the communication has been independently verified as legitimate.
"These emails are extremely convincing. No one should assume that they are 'too savvy' to recognize the fraud, or 'too small a target' to be on a hacker's radar," warns Karen Trolan, president of SILVAR.
If you believe your email or any other account has been hacked, and you have wired money following false wiring instructions, immediately call all banks and financial institutions that could put a stop to the wire, call the police. Alert other parties who may have been exposed to the attack and tell them not to comply with any requests from an unverified source.
"Make sure to implement the most up-to-date firewall and anti-virus technologies in your computer. This fraud is pervasive, convincing, and constantly evolving," adds Trolan.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.