Wire Fraud on the Rise

Wire Fraud on the Rise

E-mail hacking and wire fraud schemes are on the rise in the mortgage industry. In the past few years, homebuyers have been schemed into losing thousands of their hard-earned dollars, and unfortunately, a lot of that money has not been recovered.

So what exactly is wire fraud? It’s a crime in which a person (hacker) creates a scheme to defraud or steal money based on fabricated information. It is common for hackers to gain access to e-mail addresses, whether they are from a settlement agent, title company, realtor or mortgage lender, and impersonate them. The hacker will send an authentic looking e-mail to the borrower with a new set of wire instructions. These wire instructions route the money to a fraudulent bank account rather than the settlement agent’s account. Once the money is out of the borrower’s account, it is very difficult to trace where it was sent, making it tough to recover.

While this is a widespread problem, there are ways borrowers can prevent being schemed into wire fraud.

  • Carefully verify all e-mail addresses on every e-mail received and sent. Hackers will slightly adjust the appearance of an e-mail address to make it seem like an original copy. Even if the signature line and logos are exactly the same, pay attention to the actual e-mail address.
  • Always call the settlement agent to confirm the wire instructions before sending any money. Use a previously known or verified phone number.
  • Instead of wiring money, ask if a certified check or cashier’s check can be brought to closing.
  • If you receive an e-mail changing the wire instructions, call the settlement agent immediately! Wire instructions seldom change. Again, use a previously known or verified number. DO NOT use the phone number in the e-mail with the revised wire instructions, this could be a number directed to the hacker.
  • After wire instructions and have confirmed and money wired, call the settlement agent to confirm the money was received.
  • Instead of having wire instructions sent through e-mail, pick them up from the settlement agent’s office.

If you suspect you have been targeted for wire fraud or something seems out of the ordinary, don’t hesitate to reach out to your loan officer or settlement agent. Raising concern and asking a few extra questions is a lot better than losing thousands of dollars, and most likely losing the house you worked so hard to get.

Related Posts

New Office, New Leader, New State!
New Office, New Leader, New State!

More exciting news about our ongoing growth and expansion efforts: First Home Mortgage is opening a new office location in Sevierville, Tennessee! That’s right – following closely on the recent announcement of our latest branch expansion in Crofton, we’re opening up a new chapter in a new state, bringing our total count to 33 offices […]

August 28, 2023
Full Post
First Home Mortgage’s Crofton Branch Is Expanding
First Home Mortgage’s Crofton Branch Is Expanding

At First Home Mortgage, we know that the key to our success is the cumulative talent, effort, and dedication of our incredible teams, and that’s why we’re always seeking new opportunities to grow our talent pool. Today, we are excited to announce that our Crofton office is growing with the addition of new members of […]

August 16, 2023
Full Post
RL Kyker Joins First Home Mortgage to Lead New Branch Office in Carroll County, Maryland
RL Kyker Joins First Home Mortgage to Lead New Branch Office in Carroll County, Maryland

We’ve got more great news to share! A new First Home Mortgage branch office just opened in Carroll County, Maryland, under the skilled leadership of Branch Sales Manager RL Kyker – one of the latest additions to our growing team! “Joining the team at First Home and having the honor of leading this new branch […]

July 11, 2023
Full Post

Connect With Us