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  Geebo 9:00 am on December 3, 2024 Permalink | Reply
  Tags: BEC scam, business email compromise ( 12 ), home buying ( 6 ), real estate ( 128 ), Scams ( 1,387 )   

  Protect Your Dream Home From Email Scams 

  

  By Greg Collier

  Each year, millions of Americans achieve the dream of homeownership, often dedicating their life savings to secure a place to call home. However, a growing menace in the form of Business Email Compromise (BEC) scams has turned this milestone into a nightmare for many, stealing funds meant for closing costs and down payments. This sophisticated crime has become a multibillion-dollar problem, leaving buyers, sellers, and real estate professionals scrambling for solutions.

  The heartbreak of falling victim to a BEC scam can’t be overstated. Victims, lulled into a false sense of security by what appear to be legitimate emails from their trusted real estate professionals, are unknowingly redirected to transfer vast sums of money to fraudulent accounts. The criminals behind these scams leverage hacked email threads and insider information to craft convincing messages that fit seamlessly into ongoing transactions. With these tactics, they strike at the most vulnerable moments, just days before closing.

  One victim, for instance, described how she received an email, seemingly from her title company, with instructions to wire her down payment. It all seemed routine until the day of the closing when she discovered the devastating truth. The funds had been rerouted to a criminal’s account. The money, which represented years of savings, was gone instantly. For many, the financial and emotional toll of such losses is immeasurable, and recovering even a portion of the stolen funds can feel like an insurmountable task.

  This growing trend is not limited to individuals. Title companies, real estate firms, and law practices are also frequent targets. Criminal organizations exploit weak links in digital communications, and the damage they inflict extends far beyond monetary loss. For institutions, it undermines trust in their operations. For individuals, it casts a shadow over what should be one of life’s happiest milestones.

  Yet, despite the sophistication of these crimes, there are steps that homebuyers, sellers, and real estate professionals can take to safeguard against falling victim to a BEC scam.

  First and foremost, set clear communication protocols from the beginning. Establish who your points of contact are and confirm that no changes to wiring instructions will be communicated via email. Whenever you receive wiring instructions, always verify their legitimacy by calling your title company or real estate agent using a phone number you know to be authentic. Never rely on phone numbers or links provided in an email.

  Additionally, consider using secure platforms for sharing sensitive information. Many title companies and financial institutions now offer encrypted communication tools specifically designed to combat wire fraud. Leveraging these resources can add a layer of protection to your transaction.

  While it is possible to recover from such losses with resilience and support, prevention is the best defense. By staying informed and cautious, buyers and sellers can ensure their dream of homeownership doesn’t turn into a financial and emotional nightmare.

  Home buying should be a celebration, not a source of sorrow. With the right precautions, you can protect your investment and bring your dream home to reality.

   

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  Geebo 8:00 am on August 9, 2024 Permalink | Reply
  Tags: BEC scam, business email compromise ( 12 ), home buying ( 6 ), real estate ( 128 ), Scams ( 1,387 )   

  Protecting your new home from BEC scams 

  

  By Greg Collier

  Finding your dream home can be exhilarating, yet fraught with unexpected challenges. For one Colorado couple, the process took a devastating turn just days before closing on their new home, highlighting a growing threat to homebuyers, the Business Email Compromise (BEC) scam.

  The couple, eager to settle into a family-friendly home, found themselves victims of a sophisticated email scam. Both working in the healthcare field, they were unfamiliar with the nuances of real estate transactions. As they prepared to close the deal, they received emails that seemed to be from their lender and title company. These emails, however, were from a hacker who had infiltrated the email chain, subtly altering the sender’s address to deceive them.

  Despite their efforts to verify the wire transfer through their financial advisor, who diligently contacted their financial institution, the funds vanished. They lost over $30,000, a sum representing years of savings. Though they managed to complete the purchase, their financial plans were put on hold.

  To safeguard against BEC scams, experts recommend maintaining open lines of communication with your realtor or title company through phone calls or in-person meetings. Verifying wire instructions by phone before transferring funds is crucial.

  Title companies often emphasize the importance of wire fraud prevention, promoting awareness of best practices, and encouraging real estate agents to educate buyers early and often.

  Following their loss, the couple filed insurance claims with both their financial institution and the title company. However, both companies denied responsibility.

  This incident should serve as a cautionary tale for anyone involved in real estate transactions. By adopting preventive measures, homebuyers can protect themselves from falling victim to similar scams. Always verify email addresses, confirm wire instructions via phone, and be wary of any unexpected changes in communication.

   
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  Geebo 8:00 am on July 8, 2024 Permalink | Reply
  Tags: BEC scam, business email compromise ( 12 ), home buying ( 6 ), real estate ( 128 ), Scams ( 1,387 )   

  Email scam dupes homebuyers, bank delays refund 

  

  By Greg Collier

  Homebuyers are finding themselves vulnerable to a sophisticated and growing threat: business email exchange (BEC) scams. These cybercrimes exploit the trust and urgency inherent in property purchases by infiltrating email communications between buyers, sellers, and their agents. With access to sensitive information, scammers impersonate legitimate parties to redirect substantial down payments and closing costs into their own accounts. This deceptive tactic not only results in significant financial loss but also disrupts the dream of homeownership for many unsuspecting victims.

  One couple wired $25,000 meant for their home purchase but were tricked into sending it to a scammer. However, TD Bank, which held the scammer’s account, froze the account before the scammer could abscond with the funds. Despite this, more than 20 months later, the couple still don’t have their money back due to a bank delay.

  After nine years in a townhome, the couple decided to buy a single-family home. They found a house and were set to close. They received a legitimate email from their title company. The next day, a scammer impersonating the title company sent an email with new wire instructions, which went unnoticed. They authorized a $25,000 transfer from their Chase account to the scammer’s TD Bank account.

  When the real title company reported not receiving the payment, they realized they had been scammed. They rushed to Chase Bank to recall the wire, but it couldn’t be recalled. Fortunately, TD Bank had frozen the account. They reported the fraud to the FBI through the Internet Crime Complaint Center (IC3). The FBI informed them that TD Bank needed an indemnification letter from Chase to release the funds. After much persistence and involving the Better Business Bureau (BBB), Chase issued the letter.

  However, the letter repeatedly failed to reach the correct hands at TD Bank. Months passed with no resolution, forcing the couple to dig into their retirement savings to make the down payment for the house. It wasn’t until the couple got the local media involved before the letter from Chase finally found the right recipient at TD Bank. The couple is receiving a refund but only for a partial amount.

  Banks should prioritize assisting scam victims promptly and efficiently, minimizing bureaucratic hurdles. The current landscape, where fraudsters can exploit complex financial systems, demands that banks adopt a more proactive and compassionate approach. Simplifying the process for victims to recover their funds and providing clear, supportive guidance can significantly alleviate the emotional and financial stress caused by scams. By reducing red tape, banks can enhance their reputation for customer service and contribute to a more secure and trustworthy financial environment.

  Homebuyers should always verify any payment instructions in person or over the phone to avoid falling victim to BEC scams. Scammers can create convincing emails that appear to be from trusted parties like real estate agents or title companies. To ensure the legitimacy of wire instructions, buyers should contact the issuing party directly using a known, reliable phone number, or visit them in person. This extra step of verification can prevent significant financial loss and provide peace of mind during the homebuying process.

   
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  Geebo 8:03 am on June 11, 2024 Permalink | Reply
  Tags: BEC scam, business email compromise ( 12 ), impersonation scam ( 148 ), Scams ( 1,387 )   

  Town loses half a million to scammers 

  

  By Greg Collier

  In a stark reminder of the ever-present threat of cybercrime, Arlington, Massachusetts, a picturesque town located just six miles northwest of Boston, recently fell victim to a sophisticated cyberattack, resulting in the loss of nearly half a million dollars from the town’s coffers.

  The town, home to approximately 46,000 residents, was targeted in what is known as a business email compromise (BEC). Perpetrators used phishing, spoofing, social engineering, and compromised email accounts to facilitate wire fraud totaling close to $450,000.

  The cybercriminals orchestrated their attack by impersonating a vendor the town often does business with. Town employees received legitimate emails from this vendor concerning issues with processing payments. Unbeknownst to the town, cybercriminals had compromised some town employee user accounts and were closely monitoring email communications. They seized this opportunity to impersonate the vendor using a deceptively genuine-looking email domain, requesting a switch in payment method from check to electronic funds transfer.

  Upon discovering the fraud, the town immediately alerted law enforcement agencies and its banking institution. A digital forensics investigation was launched. The town’s banking institution managed to recoup a mere $3,308, roughly 6% of the total stolen amount.

  Town governments are not the only targets of BEC scams. Any business can fall victim if their emails are compromised, potentially impacting not only the businesses themselves, but also the residents of these towns and the customers of these companies.

  One of the preferred targets of BEC scammers is mortgage lenders. In these cases, scammers will email home buyers using the lender’s email address. The home buyers are then instructed to wire their down payment or closing costs to the scammers, believing they are communicating with their legitimate lender.

  However, recipients of compromised emails can protect themselves.

  Always double-check the sender’s email address for any discrepancies or unusual characters. Scammers often use email addresses that closely resemble legitimate ones.

  Contact the sender directly using a known, trusted phone number or email address to confirm the authenticity of any requests, especially those involving financial transactions.

  As the town of Arlington takes steps to enhance its cybersecurity defenses, other municipalities and organizations should heed this incident as a cautionary tale and proactively bolster their own measures to safeguard against potential cybercriminal activities.

   
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  Geebo 8:00 am on April 6, 2023 Permalink | Reply
  Tags: BEC scam, business email compromise ( 12 ), home buying ( 6 ), real estate ( 128 ), Scams ( 1,387 ), wire fraud ( 21 ), wire transfer ( 4 )   

  Family loses $160K to home buying scam 

  

  By Greg Collier

  Lately, we’ve noticed an uptick in news stories about the business email compromise scam. While this is only anecdotal evidence, it can mean that scammers are getting better at it, or more people are coming forward about it. Either way, it seems we can expect to see increasing incidents of the BEC scam.

  For those who may not be familiar, the BEC scam is a scam that targets businesses and individuals who regularly perform wire transfers or make large payments via email. In this scam, the attackers use social engineering tactics to trick the victim into sending money to a fraudulent account instead of the intended recipient.

  In the context of buying a house, the BEC scam typically involves impersonating a real estate agent, lawyer, or title company representative. The attacker sends an email that appears to be from one of these legitimate sources and instructs the homebuyer to wire transfer the funds for the down payment or closing costs to a specified account. The email may seem convincing and use language that mimics that of the real estate professional, including branding and logos.

  A family from Ohio recently fell victim to this scam while closing on their home after the husband retired from the military. Since they were a military family, they are familiar with the home buying process. However, in Ohio, it’s required by law to wire any closing costs over $10,000, instead of paying by check. They received an email from who they thought was the title company, and followed the included instructions on where to wire the funds. The transfer was for $160,000. It wasn’t until the next day when the family discovered the title company wasn’t the one who requested the transfer.

  The family contacted their bank, and the wire transfer was stopped before going into the scammer’s account, but the bank is allegedly dragging their feet as far as issuing a refund to the family. This isn’t surprising considering the amount of bank scams we’ve seen where the banks refuse to issue refunds.

  The family was still able to close on their home, but not everyone has that luxury.

  To avoid falling victim to a BEC scam when buying a house, it is important to always verify payment instructions before sending any money. This can involve calling the real estate professional or company to confirm that the account details are correct. Additionally, it is wise to be cautious of emails that seem urgent or that request immediate wire transfers without sufficient verification.

   
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  Geebo 8:00 am on March 21, 2023 Permalink | Reply
  Tags: BEC scam, business email compromise ( 12 ), real estate ( 128 ), Scams ( 1,387 ), wire fraud ( 21 )   

  When buying a home, double-check that email 

  

  By Greg Collier

  The business email compromise scam has become popular with scammers over the past few years because it is extremely profitable for them. It only takes one victim to fall for the scam for the scammers to make hundreds of thousands of dollars.

  There are typically two versions of the BEC scam. The first one targets corporate interests. Scammers send emails to employees or executives in a company, pretending to be a high-ranking official, such as the CEO or CFO. The email will often instruct the recipient to transfer funds or provide sensitive information such as bank account numbers, passwords, or other personal data.

  The other version of the BEC scam is the one we’re interested in today, and it’s where scammers will try to intercept the wire transfer of funds from the home buyer to the seller or the escrow company.

  For example, a man from Stamford, Connecticut, almost lost $426,000 to BEC scammers. The scammers had infiltrated the man’s email exchanges with his realtor, and told him to wire the money to a fraudulent bank account. Luckily, his bank was able to freeze the transfer before the scammers could make off with his money. Unfortunately, not every BEC scam victim can recover their money.

  A similar thing happened to a retired teacher from Colorado. She lost almost $200,000 to BEC scammers while trying to buy a home. At some point, while exchanging emails with the title company, the conversation was hijacked by scammers. The victim was pressured into wiring the closing costs to a scam account. When she went to the title company to close on the home, she was devastated when they told her they never received any payment. The $200,000 was all the money the woman had. Even with the involvement of the Colorado Bureau of Investigation, it’s not certain she’ll recover her money.

  BEC Scams can happen one of two ways. Sometimes the scammer will use an email address that’s similar to the authentic email address. So, when dealing with realtors, banks, and escrow companies, double-check the spelling of the email address before replying. The other way the BEC scam happens is when a company has had their business emails compromised by hackers or malware. In this instance, if the email appears to be legitimate, always double check with a phone call to the party that’s supposedly requesting the payment.