Protecting Yourself From Homeowner Fraud: What You Need to Know

Buying a home is exciting, but it also involves moving a LOT of money and sharing a lot of personal information. Unfortunately, that can make real estate transactions a target for scammers. Wire fraud, mortgage scams, and title fraud are real—and they can happen to anyone.

The good news is that there are some very simple things you can do to protect yourself.

Wire Fraud: The One I Want Every Buyer to Know About

Wire fraud is one of the biggest concerns during a real estate transaction, especially in the days leading up to closing. Scammers may impersonate your real estate agent, lender, escrow or title company and send you an email with fraudulent wiring instructions. Sometimes the email address looks almost identical to the legitimate one, making it incredibly easy to miss.

They may also have information about your transaction that makes the communication look completely legitimate.

My biggest piece of advice?

Never trust wiring instructions just because they came through email.

Before you send a single dollar:

• Save the phone numbers for your agent, lender and escrow/title company when your transaction begins.

• If you receive wiring instructions—or a change to wiring instructions—do not simply reply to the email.

• Call your escrow or title company using a phone number you already have and verbally confirm the instructions.

• If something seems different, unusual or rushed, stop and ask questions.

When you're wiring a large amount of money, an extra phone call is absolutely worth it.

Mortgage & Refinancing Scams

Mortgage scams can look a little different. You may receive a letter, email, phone call or text promising to lower your mortgage payment, dramatically reduce your interest rate, modify your loan or even "save" your home from foreclosure. Some of these offers may look very official, which is why it's important to slow down and verify who you're actually dealing with.

A few red flags to watch for:

🚩 You're asked to pay a large upfront fee.

🚩 You're told to stop communicating with your mortgage company.

🚩 You're asked to send your mortgage payment somewhere other than your mortgage servicer.

🚩 You're pressured to sign paperwork you don't understand.

🚩 Someone promises they can guarantee a specific result.

If you're struggling with your mortgage or are considering refinancing, start by contacting your actual mortgage servicer or a trusted financial professional.

And remember: if an offer sounds too good to be true, take a step back and investigate before doing anything.

Home Title Fraud & Seller Impersonation

Another type of fraud homeowners should be aware of involves the title to their property.

Fraudsters can use stolen personal information to impersonate a homeowner or attempt to conduct a real estate transaction involving a property they don't own.

This is especially important to keep in mind if you own an investment property or second home that you don't visit regularly.

How can you protect yourself?

• Keep your personal information secure.

• Monitor your credit and financial accounts.

• Pay attention to unexpected mail or communication regarding your mortgage or property.

• Check to see if your county offers property-record alerts.

• If you receive something that doesn't look right, don't ignore it. Investigate it.

Simple Ways to Protect Yourself

You don't need to be a cybersecurity expert to make yourself a much harder target.

🔐 Turn on Two-Factor Authentication

Use two-factor authentication on your email, banking and other important accounts whenever it's available.

🔑 Use Strong, Unique Passwords

Avoid using information that someone could easily find about you online, such as birthdays, addresses or family names. Using a password manager can also make this much easier.

📧 Be Careful With Emails & Texts

Don't click unexpected links or download attachments from people you don't recognize. And be especially cautious when a message involves money, passwords or personal information.

📱 Be Mindful of What You Share Online

Social media can provide scammers with more information than you might realize. Birthdays, family members, schools, vacations and even details about your home can all provide pieces of information that can be used to impersonate you.

🏦 Keep an Eye on Your Accounts

Regularly review your bank accounts, credit cards, credit report and mortgage information. If you see something you don't recognize, investigate it.

📞 When in Doubt, Verify

This is probably the simplest—and most important—rule.

If someone asks you to send money, provide sensitive information or make a change to something involving your home or mortgage, verify it independently before you act.

Don't use the phone number in a suspicious email. Use a phone number you already know is legitimate.

My 5 Takeaways for Homeowners

If you don't remember anything else from this article, remember these five things:

1. Slow down.Scammers often create a sense of urgency because they don't want you to stop and think.

2. Always verify wiring instructions.Before sending money, call your escrow or title company and verbally confirm the instructions.

3. Protect your personal information.Use strong passwords, two-factor authentication and be thoughtful about what you're sharing online.

4. Be skeptical of unsolicited mortgage offers.Especially when someone promises dramatic savings or asks for money or personal information upfront.

5. If something doesn't feel right, stop.Call your agent, lender or escrow/title company and ask questions. We would much rather you make an extra phone call than discover a problem after the money has been sent.

What If You Think You've Been Scammed?

Act quickly.

If you've already sent money or provided sensitive information, contact your bank or financial institution immediately. Notify your escrow/title company, lender and other appropriate professionals involved in the transaction.

For suspected wire fraud, you should also report the incident to the appropriate authorities as quickly as possible.

One last reminder from me:

Real estate transactions involve a lot of moving pieces, a lot of paperwork and, unfortunately, a lot of opportunities for scammers to try to step in. When in doubt, stop. Verify. Then proceed.

A five-minute phone call could protect one of the biggest financial investments you'll ever make.

Hey Inland Empire, I’m Candice Newman! I’ve had the incredible fortune of being born and raised in this amazing community, and I couldn’t imagine living anywhere else. I currently live in Alta Loma with my husband, Jonathan, our son, Trevor, and our dog, Ruger! I’m a real estate agent with a passion for finding new places to explore in the Foothill Communities. When I'm not selling homes, you can find me cheering my son on at his baseball games, exercising, spending time in our local mountains, heading to the lake, cooking, or watching the Dodgers slay the Giants (I was born and raised an Angels fan, but the Dodgers have taken over the household!). I'll never have enough Mexican food and Italian food in my life. I’m looking forward to connecting with you soon! See you around town! Candice.Newman.Realty@gmail.com | (909) 367-3280 DRE: 01924842