The California Department of Real Estate Winter Bulletin 2019 alerted us to the fact that real estate purchase transactions have become the targets of criminals who interject themselves by posing as a party, taking on the identity of a Title or Escrow Company or Real Estate Agent. They will then provide legitimate looking instructions directing the buyer where to wire or transfer funds. These instructions result in the wiring or transfer of funds to the criminal’s bank account, often overseas, and the immediate loss of thousands or hundreds of thousands of dollars to the victim.
What can we do to avoid such criminal activity?
- Whenever possible, use alternatives to wire transfers or EFT’s, such as cashier’s checks, and get a receipt.
- Obtain phone numbers and account numbers of real estate agents and escrow holders at the beginning of the real estate transaction, and use those numbers to contact agents and escrow holders throughout the transaction.
- If you receive new wiring instructions, call the real estate agent or escrow officer at the number you obtained in the beginning and confirm/verify the new instructions.
- Do not text or email personal information.
Note: In a note transaction, you are dealing with me from beginning to end and have all my contact info. I work with investors I know personally, and we normally work with Title Offices that closed your initial transaction, people you have met.
