The $5.3 Billion Problem Affecting Homebuying
In a growing con called "email access compromise", scammers are targeting homebuyers' down payments. The scam compromises the computer or email account of an individual or business entity related to real estate, and then impersonates that party in an attempt to intercept funds from upcoming transactions.
"Scammers and hackers want to target you when you're either scared out of your mind or extremely happy," said Ryan O'Leary, vice president of the Threat Research Center at WhiteHat Security. "Real estate is the perfect one-two combo, and there's a lot of money at stake." CNBC includes 5 tips for avoiding real estate wire fraud, and informational next steps for the victimized.
The [Federal Bureau of Investigation's] notice [in May] called out real estate transactions as a trending forum for the scam, targeting "all participants … including buyers, sellers, agents, and lawyers." In particular, complaints to the FBI from victimized title companies jumped 480 percent in 2016.
"They're tough numbers to digest because we do think they're underreported," said James Barnacle, chief of the FBI's money laundering unit.
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