Title Company Wire Fraud is on the Rise – Here’s How We Can Stop It

Over the past few years, title company wire fraud has been on the rise in the real estate industry. Wire fraud can cause our clients to lose tens of thousands of dollars and tarnishes the integrity of our industry as a whole. As experienced agents, we have a responsibility to protect our clients from these scams, and there are three best practices we can implement to do so.

The impact of wire fraud on clients can be devastating, as evidenced by a recent story featured on WLWT Channel 5 in Cincinnati. The story highlighted how one family lost $160,000 in a wire fraud scam. You can watch it here:

This type of fraud is becoming increasingly common, and it’s up to us as agents to take action and educate our clients on how to protect themselves. 

One way we can educate our clients is by having them sign a simple form that makes them aware of wire fraud. The Chabris Group, as mentioned in the WLWT story, uses this method to protect their clients. If you would like a copy to share with your clients, please reach out and we’ll send you an editable version to customize to your business and your brand. 

In addition to having our clients sign a form, there are three best practices that we can recommend to them to prevent wire fraud:

Be on the lookout for phishing 

Always check the “From” email address from your agent, title company representative, or lender and confirm it is correct. Scammers will create fake emails with the exact same email signatures or the title company or Realtor, and even use previous subject lines from the transaction! It’s critical to verify the sender’s identity before sharing any sensitive information.

Don’t give out information on incoming phone calls

If someone calls from the title company asking for wire transfer information, do not share it! Instead, call the title company back at the number listed on their website, confirm the request,  and then share the information. This ensures that the person on the other end of the line is a legitimate representative of the title company.

Never complete and email back wire transfer instructions 

Do not complete and email back any wire transfer forms. Instead, call the title company at the phone number listed on their website and give the information over the phone. This ensures that the wire transfer is going to the correct account and not a scammer’s account.

Educating our clients on these three best practices can go a long way in protecting them from wire fraud. By taking action and educating our clients, we can help to maintain the integrity of the real estate industry and prevent further losses.

Remember, to make it easier for you to educate your clients, The Chabris Group has created a simple form that can be customized and shared with clients. If you would like a copy of this form, simply contact us and we will send you an editable version to rebrand to your business and your brand.

Let’s work together to protect our clients and our industry from title company wire fraud.