Wire Transfer Fraud Prevention Tips

Posted On May 15, 2018

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In the midst of the busy home buying and selling season, fraudulent activity becomes more prevalent.  Due to the recent increase in Wire Transfer Fraud activity, it is important to remain vigilant by staying aware throughout the transaction and reporting any suspicious activity immediately. 

When a real estate agent or title company experiences an email hack, fraudulent wire instructions sent by cyber criminals can cause borrowers to lose their down payment funds with little chance of getting the money back.

Common Wire Transfer Fraud Prevention Tips

  • Obtain the phone numbers of the real estate agents and escrow officer at your first meeting with your borrower.
  • Educate your borrower to never provide wire instructions via email to any party.
  • Be suspicious of any emails that require immediate action.  Often, hackers create a sense of urgency by explaining that the agent or escrow officer cannot be reached by phone, so all follow up must be completed through email.
  • Never have a borrower send out a wire until they have called and verbally confirmed the wiring instructions with the settlement agent.
  • CMG Wholesale (or any wholesale lender) will never email your borrower directly for wire information,
  • If you suspect Wire Transfer Fraud has occurred, or are concerned with a transaction, please contact the Fraud Department immediately.

Seemingly harmless email communication could be a phishing opportunity for hackers.  Don’t become a victim of wire fraud!  Education is key to prevention.