Cyber criminals are targeting real estate buyers for an increasingly common fraud scheme called real estate wire transfer fraud. Buyers should educate themselves about the scam, and take extra steps to verify all information sent to them, experts said.
Real estate wire transfer fraud happens when cyber criminals trick buyers into wiring them money. Scammers often do this by hacking into email accounts, monitoring conversations and posing as the closing agent at the last step of the transaction.
The scams can be devastating for victims. A Nevada man recently lost $78,000 while trying to buy a house in Millinocket, the Bangor Daily News reported Monday. And email fraud is an increasingly lucrative crime in Maine. Between 2019 and 2020, the amount of money pocketed in such schemes spiked more than 400 percent.
To protect themselves, buyers should verify any payment or wire transfer instructions they receive during the real estate buying process, no matter how legitimate they may seem, said Madeliene Hill, president of the Maine Association of Realtors. That usually means picking up the phone and calling the person handling the money for the seller.
“Never wire funds without personally speaking to the intended recipient,” Hill said. “Verify the contact information yourself and have your realtor verify that information also.”
Hill also advises clients to carefully guard their personal information, including social security numbers, credit…
