Wire fraud—you’ve likely heard about it or have seen it mentioned in tiny font at the bottom of emails, but what is it exactly? How does wire fraud in real estate or mortgages happen? What can you do to prevent it? Let’s dive into these questions so we can stop wire fraud before it happens!
So, how exactly does wire fraud happen? Well, it’s important to know that it can happen to anyone. Wire fraud perpetrators are very sophisticated nowadays, so much that you may not even realize you’ve been a victim of wire fraud until it’s too late.
If your computer or another third party in your mortgage process has malware on their computers, they are much more susceptible to wire fraud. Sophisticated hackers are able to get sensitive information off of your computer, allowing them to send very convincing emails. Similar to phishing emails, you can receive a fake wire instruction that looks very real (even down to the logo)—thus, wire fraud happens.
People trying to commit wire fraud will often try to redirect your cash-to-close into a different escrow account that’s not with the title company. Even the email address or signature can look real, down to even a warning about wire fraud on the email trying to scam you.
Luckily, there are several key components you can look out for to avoid becoming a victim of wire fraud. First and foremost, work with a mortgage company that you trust to have security protocols in place to protect you. We work hard to educate our borrowers, as well as confirm all wire transfers via phone call before they’re placed.
We also recommend some of the following precautions to help protect yourself:
When you’re purchasing or refinancing a home, you’re working with a lot of money at once. It can be intimidating to click “send” on so much of your finances, but when you work with a reliable team, you can rest easy knowing your money is in safe hands.
Here at Luminate Home Loans, it’s not our intention to worry or scare you with potential wire fraud. Instead, we want to help bring more awareness to the issue. Because the more aware you are, the better you’ll be able to identify malicious attacks in the future! When you choose a lender like us, not only are you getting top-notch service, you’re also getting peace of mind.
NMLS Consumer Access #150953
All Rights Reserved | Luminate Home Loans, Inc
Luminate Home Loans, Inc. a wholly owned subsidiary of Luminate Bank
NOTICE TO TEXAS CONSMERS: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.”