How to Avoid Being a Victim of Wire Fraud?

How to Avoid Being a Victim of Wire Fraud?

In a real estate transaction, obviously, money is going to have to change hands because no house is free. When you get to closing, particularly for buyers, they obviously have to get money to the title company for the title company to ultimately get that to the seller.  One of the biggest ways to send money is via wire transfer. There is a form that all good agents should have you sign that’s a wire fraud disclaimer. 

 

What is a Wire Fraud?

Wire fraud is something that we just want to make people aware of because there are people out there who are very talented and use their talents in not the best of ways. Wire fraud is a term used to describe when someone attempts to obtain payment from you through wires and the payment is fraudulent. 

The process involves obtaining bank account information, which then uses the account to initiate payments or wire transfers, but the victims never receive whatever their bank told them they would.

 

How to Avoid Wire Fraud?

Anna Rowland from Signature Title shared with us the process or approach on how to ensure their clients that they are wiring money to the right person or company. Anna states that clients are required to call her office and talk to one of her staff members to verify the wiring instructions. 

It’s not the norm, but it’s a way that they feel would protect both parties from some wire fraud. Basically, it’s all the information you need, but you just have to call in and get some missing pieces. 

One thing that’s very important about this is Realtors are not allowed to change wiring instructions over the phone or via email.

The title company requires that you do all that in person just to safeguard that. Just be careful because we want to always protect our clients and make sure that the money shows up at the same time that you show up at closing. We don’t have any issues that could keep you from buying that house or the sellers getting the money they’re supposed to be getting.

Thinking of buying a home before selling your current Nashville home? Give me a call at (615) 930-0313, schedule a call with me, or send me a message! I love helping people and using my financial and legal background to guide you in finding your dream home!