Page 18 - Homeowners Manual - San Luis Obispo County

BEWARE OF WIRE FRAUD

According to the Federal Bureau of Investigation (FBI), in 2023 victims of business email compromise
reported losses over $2.9 Billion.

The FBI’s Internet Crime Complaint Center (IC3) receives, on average, more than 2,412 complaints per day
(FBI, 2023).

Cybercriminals are sending fraudulent wiring instructions to real estate agents, title companies and clients,
so it’s important to remain vigilant.

How to Protect Yourself

 Be wary of free, web-based email accounts; they are easily hacked.
 Always verify changes in payment instructions and confirm requests for transfer of funds.
 Carefully evaluate any requests for secrecy or pressure to take action quickly.
 Call, don’t email. Confirm all wiring instructions by phone before transferring funds. Use a trusted
phone number provided by your title company or closing agent.
 Be suspicious. It’s not common for title companies to change wiring instructions and payment info.
 Confirm it all. Ask your bank to confirm not just the account number but also the name on the
account before sending a wire.
 Verify immediately. You should call the title company or real estate agent to validate that the funds
were received. Detecting that you sent the money to the wrong account within 24 hours gives you
the best chance of recovering your money.
 Forward, don’t reply. When responding to an email, hit forward instead of reply and then start typing
in the person’s email address. Criminals use email addresses that are very similar to business email
addresses used by legitimate companies. By typing out an email address, you make it easier to
discover whether a fraudster is after you.

If you think you might be a victim:

1. Using a previously known phone number, call the supposed sender of the email to authenticate the
change request – don’t call the number on the email.
2. If you suspect fraud, immediately notify the financial institutions and escrow agent involved in the
transaction.
3. Contact your local law enforcement authorities, and file a complaint with the FBI’s Internet Crime
Complaint Center.

03/2024 | Sources: ALTA, FBI

13