According to the FBI (and a recent visit from a former FBI agent to our office to discuss this subject), you should be on the lookout for specific real estate scams if you are in real estate. (There are at least a half dozen.) Unfortunately, one of our agents was targeted; however, the agent that he was working with was keen enough to spot the “problem” and call him on it. Call him on the phone, that is. We rely too much on technology and avoid having those quick phone conversations when it’s just as easy if not quicker, to email or text. Well, the crooks are onto us and are getting a better understanding of how we operate. This particular crook had attempted to phish our website, gain our agent’s information, and copy and paste everything the same; however, the crook’s web address was off by one letter. This agent knew that the request from the scammer posing as our agent was an odd and unrealistic request, seeing as how we know that’s not how they conduct business, immediately called to re-discuss the closing procedures in addition to responding to the email with what their standard closing procedures were. That’s where they looked a bit more closely at all of the email details and found the attempted duplication of our website, AND all phone numbers were off by one or two numbers. The phrasing sounded correct, like our agent and everything he would have said; however, it was not our agent, and this “person’s” domain was registered in another country with the contact listed in Massachusetts. Within moments of this revelation, we had Banks, the rest of our team, and the team on the other end’s attention as to what was happening. Someone, not sure who or what group, had been targeted, but we caught them before it got out of hand! This could’ve cost all of us hundreds of thousands of dollars. Indeed, having quick phone conversations is often just as fast, if not quicker, than emailing or texting. It’s also important to know that criminals are getting savvier in their attempts to phish websites and gain access to valuable information. Your clients are helpful information. Knowing the warning signs and your standard business procedures can help protect you and your clients from these scams. As the FBI recommends, it’s essential always to double-check any requests that seem out of the ordinary or that don’t align with your standard procedures and always be on the lookout for potential scams. We are very thankful to have caught this issue before it could have caused severe financial damage. It is reassuring to know that our team was able to quickly identify the discrepancy and take the necessary steps to prevent any further issues. Our team’s attention and vigilance in this matter are truly commendable. In the end, thanks to their efforts, we have been able to avoid a costly and potentially damaging situation. We will remain vigilant and be on the lookout for any suspicious activity that could cause harm to our team or any of our partners.
All of this is to remain on guard while emailing your peers and potential buyers/sellers. We become so lackadaisical and content in our day-to-day that sometimes things get past us when corresponding many times during a transaction. Unfortunately, spoiling the dream for a hopeful homebuyer only takes a few minutes.
Our friend, a former FBI Agent and author of The Secret to Cybersecurity, Scott Augenbaum of the FBI Cyber Division, Cyber Crime Fraud Unit, gave us these essential tips to follow:
Raise awareness in your company about the threat of business email compromise scams, which will make your company less likely to become a victim
Do not accept any changes to bank account information via email or text messages. Require employees to verify each bank change, preferably in person or over the phone.
Ask your bank to hold customer requests for international wire transfers for an additional period to verify the legitimacy of the requests.
Be specifically suspicious of requests for secrecy or pressure to take action quickly.
Don’t call the phone number in the email requesting the bank change. Call a previously known number that’s listed in a directory or included on a business card.
Carefully scrutinize all emails related to real estate transactions, paying particular attention to the sender’s email address. Make sure it’s not a spoofed email account, and compare it to other emails you’ve received from that person.
If your real estate agent prefers to use a personal email account to conduct business, ask that she or he only communicate with you through company email. It’s probably more secure.
If you’re a buyer or seller, never rely on information about a wire transfer included in emails or text messages. Call your real estate agent, closing attorney, or someone at the title company and inform them that you’ve received an email or text message and want to verify its contents.
Install two-factor authentication on your email. Ask your real estate agent, closing attorney, and title company representative if they’re utilizing 2FA, as well.
If you think you may have been a victim of fraud, contact your local authorities and everyone involved in your real estate transaction!