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How Cyber Criminals Use Real Estate Transactions

Criminals are hacking into the email accounts of real estate agents or other persons involved in a real estate transaction and using the information to dupe a party into a fraudulent wire transfer. The hackers often send an email that appears to be from an individual legitimately involved in the transaction, informing the recipient, often the buyer, that there has been a last-minute change to the wiring instructions.  Following the new instructions, the recipient will wire funds directly to the hacker’s account, which will be cleared out in a matter of minutes. The money is almost always lost forever.

The National Association of REALTORS® urges its members and state and local REALTOR® associations to be on high alert for email and online fraud. In May 2015, NAR issued an alert regarding a sophisticated email wire fraud hitting the real estate industry. Since then, the incidents of online scams targeting practitioners have continued to rise, but the advice is the same. Bottom line: Do not let your guard down! Start from the assumption that any email in your inbox could be a targeted attack from a criminal.


 

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