New survey shows wire fraud is still a big problem!
Over the past few years, the title industry has ramped up efforts to spread awareness about wire fraud targeting home closings. Why? Cybercriminals continue to pose a serious threat to our customers and their money.
Despite these ongoing efforts, a recent survey from CertifID reveals that wire fraud warnings are not getting to the people who need to hear them the most: Our buyers and sellers. In fact, the survey found that less than half of recent buyers said they were “very aware” scammers were a problem in real estate before their transaction started. When it comes to wire fraud, the risks are real, and there’s still plenty of work to be done. Here are three key takeaways from the latest findings.
Suspicious messages are very common. Wire fraud may seem like a distant threat, but it’s closer than many realize. More than 1 in 4 buyers reported receiving a potentially fraudulent message during the closing process—consistent with last year’s data.
What should our customers know? If you receive an unexpected request to change payment details or an urgent demand for a wire transfer, stop and think about this message and automatically be concerned. Then, verify that the change is legitimate before doing anything else.
First-time homebuyers are especially vulnerable. Unsurprisingly, those new to the homebuying process are at greater risk—three times more likely, according to the report. Another eye-opening insight: 35% of first-time buyers believe their real estate agent is responsible for protecting them against wire fraud, compared to just 20% of experienced buyers and sellers. This underscores the need for real estate professionals of all kinds to provide extra guidance to new buyers on safe transaction practices.
Fighting fraud requires a team effort. All real estate professionals must take the lead when educating the public about wire fraud. When asked who should be responsible for fraud protection, responses were divided: 30% said the bank, another 30% pointed to the title company, and 27% believed it should be their Realtor’s responsibility. In reality, everyone involved in a transaction plays a role in fraud prevention. One extra warning could mean the difference between a smooth closing and financial devastation.
What else is The Title Resource Network doing to keep our customers safe from fraud? We’ve invested in Closinglock to make our transactions more safe and secure, but it's important to keep our guard up. After all, scammers will continue to target real estate until it's no longer a successful scheme. Let's use strong passwords, practice good cybersecurity habits and spread this important anti-fraud message as far as it'll go. Have questions? Reach out to your local office today!
