Wire fraud is one of the fastest-growing threats in real estate transactions, and escrow is often targeted because of the large sums involved. California buyers and sellers must remain vigilant throughout the escrow process.
How Wire Fraud Happens
Scammers often impersonate real estate professionals by hacking emails or creating look-alike email addresses. They may send fraudulent wiring instructions that appear legitimate but direct funds to criminal accounts.
Why Escrow Is a Target
Escrow handles sensitive financial information and coordinates the transfer of funds. Criminals rely on urgency, confusion, and trust to trick parties into acting quickly without verifying instructions.
Key Warning Signs
- Last-minute changes to wiring instructions
- Emails requesting secrecy or urgency
- Messages that look slightly “off” in tone or spelling
- Instructions that differ from prior communication
How to Protect Yourself
- Never rely solely on email for wiring instructions
- Always verify instructions by calling a trusted, known phone number
- Be cautious of pressure to act immediately
- Ask escrow questions, there are no “silly” concerns when it comes to funds
Escrow’s Role in Prevention
Escrow companies implement strict procedures to protect client funds, but security works best when all parties stay alert. Education and verification are the strongest defenses against wire fraud.
Wire fraud is one of the fastest-growing threats in real estate transactions, and escrow is often targeted because of the large sums involved. California buyers and sellers must remain vigilant throughout the escrow process.
How Wire Fraud Happens
Scammers often impersonate real estate professionals by hacking emails or creating look-alike email addresses. They may send fraudulent wiring instructions that appear legitimate but direct funds to criminal accounts.
Why Escrow Is a Target
Escrow handles sensitive financial information and coordinates the transfer of funds. Criminals rely on urgency, confusion, and trust to trick parties into acting quickly without verifying instructions.
Key Warning Signs
- Last-minute changes to wiring instructions
- Emails requesting secrecy or urgency
- Messages that look slightly “off” in tone or spelling
- Instructions that differ from prior communication
How to Protect Yourself
- Never rely solely on email for wiring instructions
- Always verify instructions by calling a trusted, known phone number
- Be cautious of pressure to act immediately
- Ask escrow questions, there are no “silly” concerns when it comes to funds
Escrow’s Role in Prevention
Escrow companies implement strict procedures to protect client funds, but security works best when all parties stay alert. Education and verification are the strongest defenses against wire fraud.
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