As technology moves forward at blinding speed, opportunities continually arise for white collar criminals. The problem is a huge one, and the FBI issued a Public Service Announcement last year on the subject.
The latest scam in the news targets home buyers, including those in the Phoenix area. The scammers adopt names of real estate agents, officials at mortgage companies, and title officers who are involved in legitimate real estate transactions. They use those names in emails directed, usually, to home buyers, and effectively hijack the home purchasing process at a critical time, just prior to the closing. The end result could be, at least initially, the loss of a down payment by the purchaser. But the domino effect could lead to multiple related problems. For example, the seller might then be unable to complete a transaction (the purchase of another home) which was dependent upon the closing of title on his sale. In addition, the brokers would not be paid their commissions, the title company would not be paid, and the bank will not process the mortgage loan. In the worst case, the entire purchase price for the home could be lost.
What happens is that the scammers access your email account using the names of real estate agents and others, discover your consumer information, and become aware of the closing date of your real estate transaction. As a result, your email account needn’t always be hacked in order for the information to be stolen. A typical example would allow someone posing as a title company representative to instruct the buyer, via email, to wire the closing funds to a new account set up just for that purpose. Within seconds, the money is gone.
How to Avoid Being Scammed
The question, of course, is how to avoid becoming a victim of one of these scams. The first lesson is that you should never send financial information via email. The fact is that most email accounts are not secure, and can be hacked. The second is to remain wary about opening email attachments and clicking on unknown links, which is a favorite tool of hackers. In sum, you can avoid some of the risk of becoming a victim by taking common-sense steps with your own email. You could also become a victim as the result of your broker or mortgage official being hacked. If that should occur, it’s time to speak to an experienced Phoenix attorney. You may be entitled to recover a loss if it occurred through the negligence of another person or company involved in your real estate transaction.
Law Offices of David A. Black
40 North Central Avenue #1850
Phoenix, AZ 85004
(480) 280-8028