02 May
Since online-based transactions are becoming more prevalent nowadays, cyber criminals are constantly searching for new and creative methods to steal your money. To ensure that you do not fall prey to such schemes or attacks, following are some types of real estate frauds and schemes that you can protect yourself from.
Wire Fraud
Wire fraud is one of the most common types of real estate fraud whereby a fraudster would send you an email or a text message outlining instructions on where to wire your deposit funds to be held in trust. To ensure validity, many cyber criminals would develop fake websites that look authentic to the normal user and would also be similar to your lending companyâs website.
Moreover, the phone number, URL, and the email address would also look authentic and familiar as well, however, they might just be one letter or number off. Such aspects are easy to miss if you are not looking closely. If you send the money this way, the scammers can withdraw your money from an offshore account, and you are left a victim of fraud.
Loan Fraud
This type of fraud is committed by sending you an email informing you that you are pre-approved for a special mortgage loan with an extremely low interest rate. In majority of the cases, such mortgage agencies are fraudulent loan companies that are offering steep discounts on mortgages so that you pay an upfront fee.
You should be cautious of any services that inquire about your bank details or other sensitive information. You should always conduct thorough research on the company before moving forward and inquire for a list of referrals that you can contact.
Title Fraud
Title fraud is one the most devastating real estate fraud schemes faced by property owners. This type of fraud begins with scammers getting hold of your online passwords and other sensitive information. This information is then used by cyber criminals to procure fake documents to pose as the property owner and transfer the property to his or her name. They also take out a mortgage or line of credit against the property and the criminal escapes with the cash they have obtained against your assets.
There are many ways to protect yourself from real estate fraud schemes. Some methods of protection are discussed as follows.
Protect Your Personal Data
It is recommended that you use a unique password for each login account you are creating, and you should also ensure that your antivirus and security software are up to date. You should avoid the use of online banking transactions on public networks because your information can be easily stolen by cyber criminals.
Confirm Validity
Before you send money or give out sensitive information to a third party, verify that you are dealing with the legitimate company or person. Ensure that you certify all original documents from your lender and call the listed phone number to verify the payment instructions.
Get Title Insurance
If you are buying property, ensure that you get title insurance. Title insurance is your best protection against title fraud. It also protects you from existing liens on the title, encroachment issues and errors in surveys and public records.
