Stay Secure: How to Shield Your Real Estate Transactions from Wire Fraud

July 15, 2024

Understanding Wire Fraud in Real Estate

A woman in a green shirt is holding a sign that says scam.

Wire fraud , a term you might have encountered in fine print or during security briefings, represents a significant threat in the realm of real estate and mortgage transactions. Understanding the nature of wire fraud and implementing effective strategies to counter it is crucial. Here, we’ll explore what wire fraud entails, how it commonly occurs, and practical measures to protect yourself and your finances.

Understanding Wire Fraud in Real Estate

Wire fraud occurs when perpetrators deceive you into sending funds to fraudulent accounts. These criminals are adept, often using sophisticated techniques to make their requests appear legitimate.
For instance, if malware compromises your computer or that of a third-party involved in your mortgage process, it becomes easier for hackers to access sensitive information and craft convincing fraudulent communications. These may mimic legitimate emails from your real estate or mortgage professionals, complete with authentic-looking logos and email signatures.
A common tactic involves altering the instructions for your closing funds, directing them to a fraudulent account rather than the legitimate title company’s escrow account. These emails might even ironically warn you about the risk of wire fraud, making them seem more credible.

Proactive Steps to Prevent Wire Fraud

At Neo Home Loans, we prioritize the security of our clients by implementing robust security protocols and educating our borrowers about the risks of wire fraud. Here are some of the preventive measures we recommend:
  • Regularly Update Your Email Passwords: Changing your email passwords every 90 days or so is a simple yet effective way to enhance security.
  • Install and Update Anti-Virus Software: Ensure your personal and work computers are protected by reliable anti-virus software that updates and runs scans automatically.
  • Maintain Software and Operating System Updates: Regular updates can be annoying but are essential in keeping your devices secured against new threats.
  • Scrutinize Email Details: Phishing attempts can be highly sophisticated. For example, an email intended to deceive might use an address that closely resembles our official one, such as “@golum1nate.com” instead of “@goluminate.com.” Always verify the authenticity of emails.
  • Verify Wire Instructions by Phone: Before executing any wire transfers, confirm the details over the phone with a trusted mortgage professional, especially if anything in the email seems amiss.

Choosing the Right Lender for Security and Peace of Mind

The financial magnitude of purchasing or refinancing a home can make the process daunting. This makes choosing a trustworthy lender not just a preference, but a necessity. At Neo Home Loans, our commitment extends beyond providing excellent service; we aim to ensure that every transaction is secure, reducing the risk of wire fraud and giving you peace of mind.  Our approach is not to alarm you but to prepare you, enhancing your ability to detect and avoid malicious schemes. By choosing a lender that not only values but actively invests in your security, you enhance your defenses against potential wire fraud, ensuring that your financial journey is both successful and secure.

< Older Post Newer Post >

The Significant Impact of Dropping Mortgage Rates

July 22, 2024
1% Less, 5 Million More: The Significant Impact of Dropping Mortgage Rates

Parents - Are you teaching your kids about credit?

July 22, 2024
Parents - what are you teaching your children about credit and credit scores?

10 Things to do after buying a home!

July 8, 2024
Welcome to your new home! We know that moving can be a stressful time, but it’s also an exciting opportunity to start fresh and make your new place feel like home. To help you settle in, we’ve put together a list of the 10 things you should do after moving in.

Q&A Regarding Earnest Money

July 8, 2024
What is all this talk about Earnest Money?

Overcoming Housing Market Fears

May 8, 2024
Overcoming Housing Market Fears

Mastering Your Credit Score: The Key to Unlocking Your Dream Home

April 1, 2024
Mastering Your Credit Score: The Key to Unlocking Your Dream Home 

Buy Your New Home Now, Sell Later (Formula for Low Stress & Maximum Profit)

By kim.renquest • February 21, 2024
In today's fast-paced, ever-changing real estate marketplace, moving homes without the immediate need to sell an existing residence provides an unmatched level of flexibility and strategic advantage to the process. In an environment where the movement of interest rates and market dynamics is so erratic, the traditional process of buying and selling can be very intimidating. But the historical record is clear, it pays to invest in real estate. How? Well, since 1942, homeowners who have held their properties for a decade or more have never failed to realize gains on their investments in all but one period.

Factors That Will Impact Your Mortgage Rate In 2024

January 22, 2024
Factors That Will Impact Your Mortgage Rate In 2024

House Hacking: How to Save Money and Build Wealth with a Multi-Unit Property

December 11, 2023
House Hacking: How to Save Money and Build Wealth with a Multi-Unit Property

Why The No-Cost Refinance Makes Sense - Buy Now, Build Equity, and Save Big in 2024

November 27, 2023
Why The No-Cost Refinance Makes Sense - Buy Now, Build Equity, and Save Big in 2024
Show More