It’s important to be your own advocate to protect against potential fraud, especially when entering the process of buying or selling a home. Wire fraud does not discriminate, both the buyer and the seller are vulnerable. Unfortunately, wire fraud crimes are happening at alarming rates in the real estate industry. Recent figures suggest that 1 in 4 real estate transactions are the target of wire fraud. Consumers need to be aware of these statistics and learn what safety and prevention measures are available when purchasing and/or selling a property before entering into a contract and choosing a title company. Here are 4 important questions to ask a title company to mitigate risk of wire fraud:
1. What approaches and technology is my title company using to avoid wire fraud?
Realtors and brokers, attorneys, and title companies have detailed strategies and often use specialized software and online tools to facilitate the real estate transaction process. Many also utilize systems to help protect clients from fraud during the transaction, but it is vital for buyers and sellers to be aware. First, don’t be afraid to ask what steps are in place and what software your realtor and title company use to mitigate the risk against fraudsters. Title companies that make security a priority will take the time to verify IDs while being able to speak about their procedures to protect from phishing scams and other online fraud. Your title company and real estate agent should also provide information on what buyers and sellers can do to check email communications and double-check information before making wire transfers.
2. Will the title agency provide information about wire fraud to help prevent me from becoming a victim?
While it is common practice to see disclaimers in the fine print from communications with banks and/or insurance providers, these warnings don’t provide adequate detail to help consumers understand and know what they can do to avoid fraud. It’s crucial to proactively discuss these risks and seek materials that can educate further on the topic and learn what steps will protect from becoming a victim of wire fraud. Developing fraud practices include AI manipulation, the exploitation of cryptocurrencies and even vacant land schemes.
3. What supports are in place if a data breach or fraud were to happen?
It’s imperative to discuss with your title agent and/or attorney and learn how fast they can act in the event of a data breach. Learn what processes are in place to help ensure a secure transaction and what steps will be taken in the case of a data breach to minimize issues. Responsible professionals will have an incident response plan in place to catch cyber crimes and bring the fraudsters to justice. Check out this video on how companies should prepare, and plan if a data breach occurs.
4. How many other stakeholders are involved in the transaction and what steps are they taking to combat fraud?
It is equally important that you know who else is involved in the transaction and how they are putting protocols in place to avoid fraud. Having the names, emails and phone numbers of all involved is valuable for buyers and sellers to check sources of communications. Cybercriminals target homebuyers primarily due to the number of stakeholders in the transaction process. Take the time to consult with the realtor and ask how confident they are in each party’s approach to wire fraud prevention. Insist on a title agency committed to wire fraud prevention and even change title companies during the process if you are concerned about security and the agency’s experience.
At Landmark Title, we are committed to safeguarding our clients and we take extra precautions to ensure that everyone involved understands what they can do to support a secure and safe transaction. Landmark Title utilizes CertifID, the leading banking identification and verification software. With the software, its escrow agents can ascertain the safety of the wiring instructions they send to clients, while accurately collecting the banking details for residential transactions. If you are interested in working with a title company that puts security measures front and center for their clients, please get in touch. Our dedicated residential and commercial team is excited to work with you and guide you through a secure closing.