Wire fraud is a significant concern in the real estate industry, affecting buyers, sellers, and agents alike. As transactions increasingly move online, fraudsters are finding new ways to exploit vulnerabilities in the process. Connell Law, LLC and Savannah VIP Closings stays on top of these issues and implements the best practices and technology to prevent you and your clients from falling victim to these scams.
The Wire Fraud Threat: A Growing Concern
Wire fraud involves the use of electronic communications to trick individuals into transferring money or sensitive information. In the real estate industry, this typically occurs during the closing process when large sums of money are transferred from buyers or sellers. Scammers often intercept or alter email communications to redirect funds to their accounts, leaving the victims in financial distress.
Staggering Statistics: National and Georgia Data
Recent data highlights the severity of wire fraud in real estate transactions:
National Statistics:
According to the FBI’s Internet Crime Complaint Center (IC3), real estate wire fraud is on the rise. In 2022, there were over 11,000 reported cases of real estate wire fraud in the United States, with losses totaling approximately $350 million. This represents a significant increase from previous years, underscoring the growing sophistication of scammers.
Georgia Statistics:
In Georgia, wire fraud has similarly surged. The Georgia Bureau of Investigation (GBI) reported over 1,200 cases of real estate wire fraud in the past two years alone. The estimated financial impact on Georgia residents has exceeded $30 million, highlighting the prevalence of these scams and the need for increased vigilance.
How Connell Law, LLC and Savannah VIP Closings Protects You from Wire Fraud
Whether you're buying, selling, or facilitating a real estate transaction, Connell Law, LLC and Savannah VIP Closings will look out for you and protect you from becoming a victim. Below are proactive steps that every party to a real estate transaction should take, and what we do to make sure all of our closings are safe.
For Buyers:
1. Verify Communication Channels:
Always use verified contact information for your real estate agent, lender, and closing attorney. Avoid using contact details provided in emails or texts from unknown sources.
Connell Law, LLC and Savannah VIP Closings: All buyers, sellers and agents are provided with a secure, cloud-based portal through our Qualia platform, so there is never a question about whether your contact information or anyone else's is accurate.
2. Confirm Wire Instructions Directly:
Call your closing attorney or escrow agent using a phone number you have previously verified (not the one provided in an email) to confirm any wire transfer instructions. Avoid relying solely on email for this critical information.
Connell Law, LLC and Savannah VIP Closings: We take care of this for you with our Qualia Shield technology, which automatically performs a multivariable assessment of wire instructions that includes examining all bank routing numbers, account numbers, and account ownerships, and examining other fraudulent patterns to determine the risk of fraud. Then we personally examine and acknowledge the risk assessment findings on every wire, adding another layer of protection. If a risk is identified, we will take whatever additional steps are necessary until we are satisfied the information is accurate, or else identify a fraudster.
3. Be Wary of Email and Texts:
Be wary of emails or texts requesting urgent wire transfers or providing bank account details. Scammers often create fake email addresses or use fake phone numbers that closely resemble those of legitimate parties involved in your transaction.
Connell Law, LLC and Savannah VIP Closings: We strongly urge buyers, sellers, and agents not to transfer wire instructions to us via email or text, and request that all such information be submitted through our secure online portal. We let all buyers, sellers, and agents know up front that there will be no requests from us for sensitive financial information via email or text to greatly reduce the likelyhood that they will fall vicitim to this sort of phishing scheme.
4. Use Secure Methods:
When sending sensitive information, use secure methods such as encrypted email or a secure online portal provided by your real estate professionals.
Connell Law, LLC and Savannah VIP Closings: By using our secure online portal exclusively to submit your sensitive financial information directly to our firm, together we eliminate the risk that someone can obtain this information by hacking into emails or texts. Emails and texts are notoriously easy to hack if your systems are not protected or your protections are not up to date. We take the responsibility of protecting sensitive financial information away from agents with our online portal.
For Sellers:
1. Educate Yourself:
Understand the potential risks associated with wire transfers and ensure you are familiar with the common tactics used by scammers.
Connell Law, LLC and Savannah VIP Closings: Every buyer and seller who closes their transaction with us is required to watch a video that carefully explains these risks.
2. Verify Transfers:
Confirm all wire transfer instructions directly with your real estate agent or escrow officer before initiating any transfer. Never use the contact details provided in email communications for verification.
Connell Law, LLC and Savannah VIP Closings: Again, at Connell Law, LLC, we do not want agents to bear the risk and responsibility for for their clients' sensitive financial information, and that is why we strongly encourage all buyers and sellers to provide their own information directly to us, the escrow officer, through our secure online portal.
3. Monitor Your Accounts:
Regularly check your bank account statements for any suspicious activity. Report any discrepancies immediately to your bank and local authorities.
Connell Law, LLC and Savannah VIP Closings: We can't do this for you, but we can and will remind you to do it!
For Real Estate Agents:
1. Implement Secure Communication Practices:
Use encrypted email and secure messaging systems to communicate wire instructions and sensitive information with clients.
Connell Law, LLC and Savannah VIP Closings: Or, let us take you out of the chain of risk by having your clients use our portal!
2. Educate Your Clients:
Inform buyers and sellers about the risks of wire fraud and provide them with guidelines on how to verify wire transfer instructions and protect themselves from scams.
At Connell Law, LLC and Savannah VIP Closings, we do it for you!
3. Verify Information:
Always verify wire transfer details with clients and other parties involved in the transaction through secure and verified channels.
Or, let Connell Law, LLC and Savannah VIP Closings do it for you with our Qualia platform! Our Qualia Shield platform uses a combination of ID verification and biometric analysis to ensure the people involved in your transaction are who they say they are.
4. Stay Updated on Fraud Trends:
Keep abreast of the latest fraud tactics and trends to better protect your clients and your business. Regularly update your security practices in response to emerging threats.
Congratulations, you just completed this step!
Conclusion
Wire fraud is a serious threat in the real estate industry, with significant financial consequences for those affected. Connell Law, LLC and Savannah VIP Closings takes this threat seriously. That is why we carefully crafted our closing process to minimizes these risks as much as possible by using state-of-the art technology and implementing policies that protect you and your clients from becoming victims of fraud.
Comentários