Criminals continue to hack email accounts and while all professions are vulnerable to these scams, many are specifically targeting Realtors and their clients. In these scams, the hackers send an email that appears to be from the Realtor or title officer to the client, usually a buyer who is ready to wire the remainder of the down payment to close escrow. The email informs the buyer of a last minute change to the wiring instructions and directs the buyer to wire the funds directly to a fraudulent account.
"This scam is especially alarming in the Bay Area. It is a busy and hectic time in real estate because home prices are high, inventory is low, and buyers are trying to close escrow quickly because of the fierce competition for homes," says Denise Welsh, president of the Silicon Valley Association of Realtors. "Scammers have been known to monitor email accounts of parties in a transaction and strike at the time the money is supposed to be wired. In many cases, once the money is wired, it is gone forever."
"Parties to a transaction, real estate or otherwise, need to be in constant communication with each other and always verify, especially if email instructions involve the wiring of money," adds Welsh.
The Silicon Valley Association of Realtors is warning Realtors and their clients to be on high alert for email and online fraud. The following are prevention tips issued by the National Association of Realtors which Realtors and their clients are advised to follow:
* If possible, do not send sensitive information via email. If you must use email to send sensitive information, use encrypted email.
* Immediately prior to wiring any money, the person sending the money must call the intended recipient to verify the wiring instructions. Only use a verified telephone number to make this call.
* Do not trust contact information in unverified emails. Sophisticated hackers recreate legitimate-looking signature blocks with their own telephone number.
* Never click on any links in an unverified email. In addition to leading you to fake websites, these links can contain viruses and other malicious spyware that can make your computer vulnerable to attack.
* If an email or a telephone call ever seems suspicious or "off," refrain from taking any action until the communication has been independently verified as legitimate.
* If your email has been hacked, immediately contact all parties to all of your upcoming transactions and inform them of the possibility of this fraud.
* Clean out your email account on a regular basis. Your emails may establish patterns in your business practice over time that hackers can use against you. You can always save important emails in a secure location on your internal system or hard drive.
* Change your usernames and passwords on a regular basis.
* Make sure to implement the most up-to-date firewall and anti-virus technologies in your business.
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.