The Better Business Bureau is warning consumers about scammers hacking into email accounts and telling home buyers to wire closing costs straight into their pockets.
Scammers have been hacking into the email accounts of real estate professionals.
They search for information about upcoming transactions.
After figuring out the closing date, the hacker sends an email to the buyer, posing as the agent or title company.
Better Business Bureau Serving Acadiana Business Administration Manager, Chris Babin, said, “Your email account gets hacked whether it’s a real estate agent or mortgage brokerage. They’re digging into those emails to find out about upcoming closings and how they can take advantage of prospective home buyers.“
Instead of bringing a check to the closing, the scammer instructs a home buyer to wire the closing costs to a bank account.
“Closing costs average from 2-5% per home when you purchase based on the purchase price. A lot of times what they’re doing is they’re stepping in prior to that closing date sending an email acting as though they are your mortgage brokerage, or they are your real estate agent and asking for those funds electronically,” added Babin.
The scammer asks the home buyer to either wire money through a western union account or submit a payment on a website to pay your closing costs early.
“It’s not the website that’s going to give the payment to the right people. It’s going to give it to the scammers,” explained Babin. Typically, real estate agents maybe emailing back-and-forth with their buyer. Scammer sees when that is… Takes advantage of that.“
According to the Babin, there are six and a half million homes purchased in the United States.
“They’re going to pretend to be your real estate agent pretending to be the mortgage brokerage firm that you’re dealing with… Have the email signature just as it would be and potentially have the email address spoofed to where it does look like a legitimate email,“ said Babin.
The Better Business Bureau said as a real estate agent or any business professional if you find out your work account has been hacked, the first thing to do is change your password.
That would prevent possible scammers from seeing anything in the future.
Here are tips from the Better Business Bureau to avoid this scam:
Make sure you are wary of unexpected emails that may contain links or attachments.
Consider how the company usually contacts you. you should be suspicious if you suddenly start receiving emails that you never opted to.
Don’t believe what you see when it comes to an email because scammers know how to fake company logos.
Email isn’t always the most secure way to send financial information.
Click here for additional information from the Better Business Bureau.
If you have a scam you’d like me to investigate, feel free to send me an email at smasters@klfy.com.
