For most people, buying a new home is an exciting and unforgettable milestone. For a growing number of unsuspecting homebuyers, however, it has turned into a nightmare.
Last year, more than 11,000 people in the U.S. were victims of real estate wire fraud. Many lost their entire savings, as well as the new home they were trying to buy. Most never recovered a penny. The large down payments they mistakenly wired to a criminal’s account were transferred overseas and never seen again.
The pain and anguish of losing all your money to an invisible, untraceable thief is almost too much to bear. I know, because it happened to me.
One year ago, my family and I were looking forward to celebrating Christmas and our son’s fifth birthday in our new home in Oregon City. Shortly before the sale was to close, I received an email with instructions on where to wire my $123,000 down payment. The email looked like it came from my title company—it had the title company’s logo, my real estate agent and loan officer’s names and contact information in it. So, I followed the instructions and did what I thought I was supposed to do.
Eight days later, I answered the phone. It was my title company, calling to give me the actual wire instructions for my down payment. My heart had sunk to the pit of my stomach. It was then I realized something had gone terribly wrong.
The next several days were excruciating. I worked desperately with my title company, my bank, federal investigators and the police to try to recover my money, our family savings, but to no avail. To make matters worse, we had already sold our old home and had no place to go. For all intents and purposes, my family was going to be homeless.
Thankfully, my title company, WFG National Title Insurance Company, came to the rescue. I was hired as a spokesperson for the company’s Cyberfraud Awareness Team to educate consumers and businesses about the dangers of wire fraud. I was provided a salary that allowed our family to close on our new home after all, and in time for the holidays. My nightmare before Christmas became a true Christmas miracle.
I learned some valuable lessons, too. The ways you can prevent becoming a victim of wire fraud are really very simple, but so important to remember. First, never share information about your transaction – or any financial information, for that matter – over email. Second, before wiring money, confirm the wire instructions with someone in person or over the phone. Lastly, report any suspicious activity immediately. If you believe your funds have been taken, contact your bank or title representative right away and request a wire recall.
Most important of all, don’t make the mistake of thinking wire fraud can’t happen to you. When we were buying our home, I saw multiple warnings about cyber scams on the documents I had to sign. Yet, like most people, I just signed them, one after the other, and didn’t think much about it.
Wire fraud nightmares are real, but they are preventable. The next time you plan to make a large wire transfer, as a consumer or in business, please remember these tips, so that my nightmare doesn’t have to happen to you.