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What is wire fraud
Wire fraud
How scammers try to steal thousands of dollars from homebuyers
In a real estate transaction, wire fraud is a scheme or scam where a fraudster attempts to manipulate a homebuyer into wiring closing funds to an account they created instead of the title company’s bank account. Often, the funds are not recoverable, especially if the fraud is not identified quickly.
Fraudsters accomplish this by gaining insight into the transaction, usually by compromising an email account of a party to the transaction, and using the information they obtain to send fake or “spoofed” emails, text messages, or phone calls to the buyer posing as the title company, real estate agent, or lender. These schemes are often convincing and elaborate, and they can involve multiple messages sent through different methods.
How can you protect yourself
Secure your email
If a fraudster has access to your email, it is much easier for them to develop a wire fraud attempt against you. Ensuring two-step verification, also known as two-factor authentication, is enabled on your email account helps prevent this. Two-step verification adds a second layer of security to your email account. This can take several forms, but it is typically a code that is sent to your cell phone when you attempt to login from a new location. Two-step verification makes it extremely difficult for fraudsters to access your email account even if they have obtained your password. We also recommend that you speak with the other parties involved in your transaction to confirm they utilize two-step verification on their email accounts. All Guild Mortgage Company email accounts require the use of two-step verification.
Instructions for setting up two-step verification with some of the most popular email services are below: Gmail Yahoo AOL Outlook
Be cautious about your wire
Be suspicious of any messages you receive asking you to wire funds, especially if it is changing previously provided wiring instructions. Do not wire funds to any party based solely upon wire instructions you receive by email or text. Review messages carefully for any inconsistencies such as poor wording, odd email addresses, or anything out of the ordinary. Guild Mortgage will never send you wiring instructions for your transaction. Typically, wiring instructions will be provided to you by the title company. Before wiring funds, contact the title company by phone at a publicly available phone number, such as one listed on a verified website or in the phone book, to verify the wiring instructions received. Do not call any number or click on any link in a suspicious email or text message. When responding to messages regarding your wire, type in the known email address for the party instead of using the reply function.
Follow up after wiring the funds
After you wire your funds, they should be received by the other party within a few hours. Contact the receiving party at a verified phone number to confirm receipt.
Explore other options for providing fund
Speak with the title company and ask if they accept funds through methods other than wires, such as by providing a cashier’s check. This may or may not be an option depending on the company, the wire amount, and your local rules.
What can you do if you are a victim of wire fraud
What can you do if you are a victim of wire fraud
If you suspect you have been a victim of wire fraud, it may be possible for some funds to be recovered, but time is of the essence. Quickly take the following actions to have the best chance of recovering funds.
- 1. Immediately contact the bank you used to wire the funds. Advise them of the situation and ask them to recall the wire or freeze the funds. Your bank may also be able to provide you with additional assistance and guidance.
- 2. Contact the receiving bank and advise them of the situation. Ask them to freeze the funds or return the wire.
- 3. Report the fraud to the FBI. The fastest way to do this is to file a complaint through the FBI’s Internet Crime Compliant Center at www.ic3.gov. Complete as much information on the report as possible. The FBI can often help recover funds, but they may not reach out to request missing information due to the volume of reports they receive. You can also contact your local FBI office.
- 4. Contact your local police department and/or your state Attorney General.
- 5. Let all parties to the transaction, including your Guild loan officer, know of the incident. You can also alert Guild by filing a Cyber Security report. We will perform an internal investigation into the incident and are also happy to help you with any of the above steps.
Additional resources
Additional resources
The third party articles and resources below provide further insight into wire fraud and some real life stories of wire fraud victims.
Wire fraud How scammers try to steal thousands of dollars from homebuyers
In a real estate transaction, wire fraud is a scheme or scam where a fraudster attempts to manipulate a homebuyer into wiring closing funds to an account they created instead of the title company’s bank account. Often, the funds are not recoverable, especially if the fraud is not identified quickly.
Fraudsters accomplish this by gaining insight into the transaction, usually by compromising an email account of a party to the transaction, and using the information they obtain to send fake or “spoofed” emails, text messages, or phone calls to the buyer posing as the title company, real estate agent, or lender. These schemes are often convincing and elaborate, and they can involve multiple messages sent through different methods.
Secure your email
If a fraudster has access to your email, it is much easier for them to develop a wire fraud attempt against you. Ensuring two-step verification, also known as two-factor authentication, is enabled on your email account helps prevent this. Two-step verification adds a second layer of security to your email account. This can take several forms, but it is typically a code that is sent to your cell phone when you attempt to login from a new location. Two-step verification makes it extremely difficult for fraudsters to access your email account even if they have obtained your password. We also recommend that you speak with the other parties involved in your transaction to confirm they utilize two-step verification on their email accounts. All Guild Mortgage Company email accounts require the use of two-step verification.
Instructions for setting up two-step verification with some of the most popular email services are below: Gmail Yahoo AOL Outlook
Be cautious about your wire
Be suspicious of any messages you receive asking you to wire funds, especially if it is changing previously provided wiring instructions. Do not wire funds to any party based solely upon wire instructions you receive by email or text. Review messages carefully for any inconsistencies such as poor wording, odd email addresses, or anything out of the ordinary. Guild Mortgage will never send you wiring instructions for your transaction. Typically, wiring instructions will be provided to you by the title company. Before wiring funds, contact the title company by phone at a publicly available phone number, such as one listed on a verified website or in the phone book, to verify the wiring instructions received. Do not call any number or click on any link in a suspicious email or text message. When responding to messages regarding your wire, type in the known email address for the party instead of using the reply function.
Follow up after wiring the funds
After you wire your funds, they should be received by the other party within a few hours. Contact the receiving party at a verified phone number to confirm receipt.
Explore other options for providing fund
Speak with the title company and ask if they accept funds through methods other than wires, such as by providing a cashier’s check. This may or may not be an option depending on the company, the wire amount, and your local rules.
What can you do if you are a victim of wire fraud
If you suspect you have been a victim of wire fraud, it may be possible for some funds to be recovered, but time is of the essence. Quickly take the following actions to have the best chance of recovering funds.
- 1. Immediately contact the bank you used to wire the funds. Advise them of the situation and ask them to recall the wire or freeze the funds. Your bank may also be able to provide you with additional assistance and guidance.
- 2. Contact the receiving bank and advise them of the situation. Ask them to freeze the funds or return the wire.
- 3. Report the fraud to the FBI. The fastest way to do this is to file a complaint through the FBI’s Internet Crime Compliant Center at www.ic3.gov. Complete as much information on the report as possible. The FBI can often help recover funds, but they may not reach out to request missing information due to the volume of reports they receive. You can also contact your local FBI office.
- 4. Contact your local police department and/or your state Attorney General.
- 5. Let all parties to the transaction, including your Guild loan officer, know of the incident. You can also alert Guild by filing a Cyber Security report. We will perform an internal investigation into the incident and are also happy to help you with any of the above steps.
Additional resources
The third party articles and resources below provide further insight into wire fraud and some real life stories of wire fraud victims.