An alarming statistic released by the American Land Title Association suggests that nearly 30% of Realtors or their clients have been victims of some type of wire fraud. These scams often take millions of dollars from unsuspecting consumers each and every year. 

It has turned into a growing problem. Understanding the risks, however, enables you to combat threats such as wire fraud.

The process of diligence also allows clients and real estate agents to save millions and not fear wire fraud or related scams and safely conduct property transactions.

So, what do you look for? How do you protect yourself?

Wire Fraud occurs when hackers commit to compromising an individual’s email account. Sophisticated techniques are often used to then scan a person’s emails for ‘specific content’ related to financial or upcoming real estate transactions. 

The hackers will often reach out to you with very well presented templates which look official in an attempt to persuade you into submitting sensitive information about payments or transactions via the use of phishing emails.

If money is sent and then intercepted somehow through one of these types of schemes, it is very hard to recover, since hackers are often difficult to track.

To help keep clients safe, industry professionals can:

• ·Create a standard warning about these scams and build it into the signature line of their email to help raise awareness
• ·Be clear about communication practices for every transaction
• · Call clients immediately before any legitimate wire transfer, so they know it's going to the right place and people
• · Avoid free Wi-Fi when doing anything sensitive, so information can't be captured as easily
• · Use strong passwords, and make sure those passwords get changed frequently
• · Employ someone who handles and monitors security systems for the real estate firm to reduce the risk of being hacked
• · Inform clients to always report unsolicited email communications
• · Notify any suspicious emails to the appropriate enforcement authorities

With the right education and information, real estate professionals and clients can work together to have good transactions that are free from wire fraud and other forms of hacking and theft.