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  Geebo 8:00 am on August 9, 2024 Permalink | Reply
  Tags: BEC scam ( 5 ), business email compromise, home buying ( 5 ), real estate ( 127 ), Scams ( 1,366 )   

  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 ( 5 ), business email compromise, home buying ( 5 ), real estate ( 127 ), Scams ( 1,366 )   

  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 ( 5 ), business email compromise, impersonation scam ( 146 ), Scams ( 1,366 )   

  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 9:00 am on February 23, 2024 Permalink | Reply
  Tags: business email compromise, real estate ( 127 ), Scams ( 1,366 )   

  The costly conundrum of real estate email compromise 

  

  By Greg Collier

  Two years ago, a California couple embarked on the daunting journey of finding their dream home amidst a competitive market and low-interest rates. After viewing 50 homes, facing disappointment with three failed bids, they finally secured a house, breathing a sigh of relief. Little did they know, their ordeal was far from over.

  Navigating through the intricacies of the escrow process, the couple encountered an unexpected twist at the eleventh hour. What seemed like smooth sailing turned into a nightmare when they received wire instructions for their down payment via email, purportedly from their escrow agent. Trusting the legitimacy of the communication, they wired a substantial sum, only to realize days later that they had fallen victim to a scam.

  The email, meticulously crafted by fraudsters, mirrored previous correspondences, complete with a familiar tone and personalization, lulling the couple into a false sense of security. This suggests potential breaches in the escrow company’s email system as the point of entry for the scammers.

  This incident, known as business email compromise, has become alarmingly prevalent, with FBI data revealing staggering losses amounting to billions of dollars annually. Despite mandatory reporting of fraud by escrow companies, recourse for victims remains elusive.

  Attempts to seek redress from the couple’s escrow company yielded no response, leaving them grappling with the harsh reality of their depleted savings and mounting debt. Forced to borrow from family to salvage their homeownership dreams, they now face the arduous task of repaying borrowed funds, a burden that weighs heavily on their shoulders.

  When making a down payment on a home, always confirm wire instructions through direct communication with trusted contacts, avoiding reliance solely on email correspondence. If prompted to call for wire instructions via email, ensure that you dial a known or verified number.

   
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  Geebo 8:00 am on April 6, 2023 Permalink | Reply
  Tags: BEC scam ( 5 ), business email compromise, home buying ( 5 ), real estate ( 127 ), Scams ( 1,366 ), 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 ( 5 ), business email compromise, real estate ( 127 ), Scams ( 1,366 ), 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.

   
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  Geebo 9:00 am on January 19, 2023 Permalink | Reply
  Tags: business email compromise, check scam ( 79 ), fake check ( 48 ), inheritance ( 6 ), mail fraud ( 21 ), Scams ( 1,366 ), Zelle ( 66 )   

  Scam Round Up: Fake check scam targets lower income families and more 

  

  By Greg Collier

  This week on the round up we’re bringing you two scams that take advantage of the disadvantaged and one that can affect any business and its customers.

  ***

  The business email compromise scam is one of the more insidious scams. While it targets businesses, it’s usually the customers who lose the most. This is when scammers hijack a business’ email client and use it to deceive customers into making payments to the scammers. Typically, we’ve seen this when scammers convince homebuyers to send their closing costs to the scammers.

  More recently, scammers hijacked the email client of a roofing company in Florida. If you’ll recall, many Florida residents are still recovering from Hurricane Ian. The scammers sent emails to customers asking them to send their payments through the Zelle payment app. One customer lost $1800 to the scammers.

  If a business that you’re dealing with that you’re expected to make a large payment to, be wary if you’re suddenly asked to pay in nontraditional means. These can be payment apps like Venmo and Zelle, wire transfers, or cryptocurrency just to name a few. If you receive one of these emails, call the business to verify the payment request.

  ***

  Our next scam is one of the oldest scams out there and predates the internet. Residents in Pennsylvania have reported receiving letters in the mail that are promising them an inheritance. This isn’t just a tired plot device from old TV shows, and victims have fallen for this scam.

  One of two things typically happen with the inheritance scam. The victim is either asked to make some kind of payment to secure the inheritance, or they’re asked for their banking information. Either way, it can be a devastating financial loss for the victims, especially if they’re in desperate financial need.

  If you receive one of these letters, toss it in the trash. The odds that the letter is legitimate are slim. If you still think there’s an outside chance it might be real, check your family lineage first before making any payments.

  ***

  Our last scam is quite an insidious one. Scammers are sending fake checks to families in traditionally low-income areas. Victims are being told that they’re receiving a payment from UNICEF because of their income status.

  As with any fake check scam, the victims are being instructed to deposit the check and are being asked to send a portion of the payment to a third party. Some of the checks have been as much as $9600.

  If you’ve been reading our blog for a while, you’ll know that the banks will allow the victims to access that money as a courtesy before the bank discovers the check is fraudulent. Then the victim is responsible for paying the amount of the check back to the bank. Meanwhile, the scammers make off with the amount that the victim sent to the third party.

  If you receive a check in the mail you’re not expecting, dispose of it. Especially if you’re being asked to send a part of it somewhere else. That can only end up as a substantial financial loss.

   
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  Geebo 8:00 am on May 10, 2022 Permalink | Reply
  Tags: business email compromise, email ( 6 ), phishing ( 76 ), real estate ( 127 ), Scams ( 1,366 ), wire fraud ( 21 )   

  Homebuyer loses $155K in email scam 

  

  By Greg Collier

  A woman in the state of Georgia was getting ready to close on a new home when she received an email from her lawyer. She was given instructions to wire transfer the $155,000 for the closing costs. However, the money did not go to the attorney. Instead, it went to the bank account of a local scammer who was recently arrested on felony theft charges.

  So, how was the scammer able to fool the victim? This scam is known as the business email compromise scam, or BEC for short. In this scam, the scammers hijack compromised email accounts of real estate attorneys, title companies, or banks. This way, the scammers can monitor the emails for people who are getting ready to close on their homes. Then, the scammers either use the hijacked email address or a spoofed address to give fraudulent instructions to the homebuyer to wire the money to the scammers. Meanwhile, the victims think they just closed on a new home.

  According to the FBI and other law enforcement agencies, this scam is becoming more common. This scam is so profitable, the scammers only need one victim to fall for the scam to make a ton of money.

  While you may not be in the market for a home right now, you may be in the future. So, it’s best to have this knowledge now instead of finding out before it’s too late. When the time comes to buy a home, the best way to protect yourself is to verify everything by phone. If you get an email from someone involved in the process asking you to make a substantial payment, call them to verify the request. It might be even better to visit the sender in person to verify any requests. No one wants to go through the stressful process of buying a new home only to have their dreams of a new home dashed by losing money to a scammer.

   
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  Geebo 9:00 am on November 19, 2021 Permalink | Reply
  Tags: business email compromise, malware ( 26 ), money transfer ( 7 ), mortgage scam ( 4 ), ransomware ( 11 ), Scams ( 1,366 )   

  This mortgage scam is more common that you think 

  

  By Greg Collier

  The mortgage scam we’re about to discuss we’ve posted about before. While it’s not a new scam, what surprised us is how often this scam supposedly happens.

  The scam is known as the business email compromise scam, but that phrase encompasses a number of scams where scammers cam imitate business emails that they’ve hijacked. Often these hijacked accounts are used to target someone else that’s in that business, such as someone in payroll or accounting who can issue checks. However, the BEC scam can also target outside customers as well. In this case, people who are getting ready to close on a home.

  In the mortgage version of this scam, scammers are monitoring the email accounts of title companies. The scammers have gained access to these email accounts through malware attacks. When the process is almost complete, the scammers will send an email to the home buyer that appears to have come from the title company asking for the final closing cost to be wired. In one recent case in North Carolina, that amount came to almost $50,000 that the home buyer lost to scammers. By the time the home buyer realized he’d been scammed, the money he wired had already been wired again to multiple locations.

  What really surprised us about this recent scam was that the FBI has said that this mortgage scam is more common than ransomware attacks. Since we hear about ransomware attacks against companies and hospitals on an almost weekly basis, this scam must happen quite often.

  The best way to protect yourself against this scam is to confirm any transactions with your title company over the phone before sending any money. Other tips include if the money wiring instructions are different from before or if there are grammatical errors in the email.

   
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  Geebo 8:00 am on July 8, 2020 Permalink | Reply
  Tags: business email compromise, phishing ( 76 ), Scams ( 1,366 )   

  Increase in scams against businesses seen 

  

  We’ve discussed a certain scam that targets businesses only a handful of times in the past. The scam comes in a few different forms but the goal is always the same and that’s to steal money from the company.

  There’s the business email compromise scam where a scammer spoofs their email address to make it look like they’re a high ranking executive at your company. The scammer will contact an employee that has financial responsibilities like payroll or accounts payable through the spoofed email. They’ll then instruct that employee to send money to a new direct deposit bank account or issue payment to a phony vendor who is in league with the scammer.

  One particularly eerie scam was when scammers used deep fake voice technology to impersonate the company’s CEO and ordered a company director to wire $240,000 to a phony vendor.

  Like we said, these stories were edge cases that only happened a handful of times. Also, they happened when most people were still working in offices and not working from home.

  Now, with the current global pandemic, more people than ever are working from home and the scammers know this. Due to the record number of people working at home, the Better Business Bureau says that these business impersonation scams have increased exponentially. Without being able to just walk to your boss’s office it can be difficult to get confirmation from your higher-ups.

  If you get an email from a company executive to wire transfer money, send gift cards, or make a payment right away that’s out of the ordinary, contact that executive by phone to make sure the request is legitimate or not. While some bosses may get gruff over this idea you can always tell them you’re just trying to keep the company secure and save the company money. Also, you may want to address this situation with your bosses if it hasn’t already been addressed and suggest some kind of system to prevent these scams from being successful.

  https://www.youtube.com/watch?v=PszKH3fbWzg