The months leading up to the purchase of a new home are super-busy. There’s so much to do! While you’re tending to everything on your list, be careful not to let your guard down. A recent uptick in mortgage fraud means house-hunters need to be extra vigilant.
Here’s what you need to know about mortgage fraud:
How it works:
You’ve picked out a property and you’re now preparing for closing. Here’s where the hacker steps in.
If you’re targeted, you might get an email appearing to be from your real estate firm or title company. It’s telling you there’s been a last-minute change in the closing process. It will then instruct you to wire your closing fees or even your entire down payment, to a specified account. Alternatively, you’ll be asked to share account information so that the company can withdraw the fees.
Of course, the email is bogus and the account belongs to the scammer. In a matter of minutes, you can lose tens of thousands of dollars.
Red flags:
Learn how to spot a fake email and hold onto your money. Here’s what to look for:
- Pre-closing payments. Most closing-related fees aren’t due until the day of the actual closing.
- Wire transfers. Mortgage brokers and realtors won’t insist that you wire funds. They’ll happily accept a personal check.
- Email. You should never be asked to send financial information via email.
If you’re targeted:
If you receive an email from your real estate firm or mortgage company asking you to wire funds, do not respond. Verify the email’s legitimacy by contacting them with a number you know is genuine. Do not click on any embedded links or respond directly to the email. Instead, open up a new message and email them directly.
When the scam is confirmed, take these steps to protect yourself and others in the future:
- Delete the suspicious email
- Alert your real estate firm, mortgage broker, financial institution, and title company
- Tell your house-hunting friends about the scam
- Alert the FTC at ftc.gov.
If you’ve already wired money to the scammer, you can still mitigate the damage by asking about a wire recall immediately. If you’re in the market for a new home, be extra vigilant. Don’t let this exciting time become a nightmare! If you have any questions or concerns about your mortgage or protecting yourself from scammers, call 315.782.0155 or visit any one of our seven relationship centers.