Avoiding Wire Fraud

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Hi, I'm Michelle. I work with all kinds of clients. Experienced buyers and sellers, first-timers, and everything in between. In my professional role I take client education seriously and I address a lot of questions. One of the first things I discuss with clients on either side of the table is how to avoid wire fraud.

Let's dive in ...

 

Wire Fraud, What Is It?

 

Wire fraud is a real threat in real estate transactions. Scammers target transactions and cleverly impersonate your agent, lender, or title company to try to trick you into sending funds to the wrong account. One wrong click could cost you your down payment, or your home sale proceeds. Here’s what buyers and sellers needs to know:

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How to Protect Yourself:

 

Always Obtain Wire Instructions by Phone via a Trusted, Public Number

 

This is non-negotiable. Always call the escrow officer handling the transaction using their publicly published phone number to verbally obtain instructions before sending money. Never trust wiring instructions received by email alone, and be extraordinary suspicious of wiring instructions changing for any reason. They virtually never do. If you receive instructions that the title company's wiring information has suddenly changed, you're dealing with a scammer.
 

Watch for Common Red Flags

 

Email addresses that look almost right but are slightly off (i.e., .net instead of .com, a 1 instead of an "l" in a name). Last-minute changes to wiring instructions. Requests to wire money to personal accounts instead of directly to the title company. All of these are red flags of attempted wire fraud. 

 

Digital Health + Email Best Practices

 

Always use strong, unique passwords. Enable two-factor authentication wherever you can. Be careful when checking email on public Wi-Fi networks. Wire fraud can only start after a hacker successfully breaks into one party's account. 

 

Bottom Line

 

Act Quickly!

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If you suspect fraud, contact your bank immediately to inquire and pull back funds if possible. Notify your real estate agent and the escrow officer about the concern. A quick phone call can save you tens or hundreds of thousands of dollars.

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Wire fraud is real, sophisticated, and preventable. Stay vigilant, verify everything by phone via a trusted public number, and never let a scammer pressure you into making rushed decisions when sending money.

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Meet Your Broker

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Michelle Schwinghammer (colloquially known as "Schwing") is a real estate agent, broker associate with West + Main Homes, and the local expert behind SCHWINGSTATE LLC. Operating across the Denver Metropolitan area, Michelle specializes in ensuring her clients are fully educated, protected, and empowered during their contract due diligence periods.

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Michelle takes client education seriously, and guide buyers and sellers through every step of the process. Ready to start a smarter home search? Schedule your Buyer Consultation today and make your next move with confidence.