Financial Advice

Protect Your Mortgage Closing From Scammers

It’s National Homeownership Month, and the FTC and the National Association of Realtors® want to remind you that scammers sometimes use emails to rob home buyers of their closing costs and personal information.

Here’s how the scam works: hackers break into the email accounts of buyers or real estate professionals to get information about upcoming real estate transactions. The hacker then sends an email to the buyer, posing as the real estate professional or title company. The bogus email says there has been a last minute change to the wiring instructions, and tells the buyer to wire closing costs to a different account. But it’s the scammer’s account. If the buyer takes the bait, their bank account could be cleared out in a matter of minutes.

If you’re buying a home and get an email with money-wiring instructions, STOP. Email is not a secure way to send financial information. Instead:

  • Contact the company through a number or email address you know is real. Don’t use phone numbers or links in the email.
  • Don’t open email attachments, even from someone you know, unless you’re expecting it. Opening attachments can put malware on your computer.

If you’ve already sent money to a scammer, act quickly.

  • If you wired money through your bank, ask them right away for a wire recall. If you used a money transfer company, like Western Union or MoneyGram, call their complaint lines immediately.
  • Report your experience to the FTC and to the FBI’s Internet Crime Complaint Center at ic3.gov. Report as soon as you can and give as much information as you can. If your bank asks for a police report, give them a copy of your report to ic3.gov.

Learn more about protecting yourself from phishing and what to do if your email is hacked. If you gave your information to a scammer, visit IdentityTheft.gov.

This article by the FTC was distributed by the Personal Finance Syndication Network.

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