Verify Escrow

7 Most Common Types Of Escrow And Wire Fraud

Protect yourself from Escrow Fraud - Watch and learn!

What is escrow fraud, you may ask? It’s a deceptive practice where scammers exploit the trust associated with escrow transactions, deceiving unsuspecting victims and manipulating the process to steal their hard-earned money. Don’t let these criminals catch you off guard! Educate yourself, arm yourself with knowledge, and together, we can combat escrow fraud.

We have prepared a video that sheds light on the intricate workings of escrow fraud, equipping you with the necessary tools to identify and prevent such scams. This insightful video dives deep into common tactics used by fraudsters, red flags to watch out for, and practical tips to safeguard your financial transactions.

By watching this video, you’ll gain valuable insights to:

  1. Recognize the warning signs of escrow fraud.
  2. Understand the various techniques scammers employ to deceive victims.
  3. Learn effective preventive measures to protect yourself and your finances.
  4. Explore real-life examples and case studies to enhance your awareness.

Empower yourself today! Click the play button below to watch our eye-opening video on escrow fraud. Stay informed, stay safe, and together let’s put an end to this fraudulent practice.

The Pseudo Seller

Posing as the seller, the scammer will contact the settlement agent with fraudulent instructions to wire the seller proceeds to a new address. The scammer can then steals the seller’s proceeds.

Last-Minute Changes

Posing as the seller around the closing date, the scammer will contact the real estate agent with fraudulent instructions to wire the seller proceeds to a new address. The scammer can then steals the seller’s proceeds.

The Refund

Posing as the real estate agent, the scammer will contact the settlement agent requesting that earnest money be sent back to the buyer and fraudulent instructions. The scammer then steals the earnest money from the buyer.

The Down Payment Transfer

Posing as the real estate agent or settlement agent, the scammer will contact the buyer with fraudulent instructions and an address to wire their down payment amount. The scammer can then steal the down payment funds.

The Fake Investor

Posing as the seller around the closing date, the scammer will contact the real estate agent with fraudulent instructions to wire the seller proceeds to a new address. The scammer can then steals the seller’s proceeds.

The White Collar Scam

Posing as a top executive in a company, the scammer will contact employees whose duties are to transfer funds with fraudulent instructions for a new transfer method. The scammer can then steal any funds that are transferred.

The Unpaid Vendor

Posing as an unpaid vendor, the scammer will contact a company with fraudulent instructions to wire funds to settle an unpaid invoice. The scammer can then steal any funds that are transferred.

Identifying Escrow Fraud

Most people don’t think they’ll ever be a victim of escrow fraud, yet millions of dollars each year are swiped from consumers. Scammers are sneaky and rely on consumers to blindly trust the communication being sent to them. Keep reading to learn how to identify escrow fraud before it can occur.

Check the sender’s email address

Scammers are notorious for conducting scams through email. Scammers are able to hack into the email accounts of your escrow company and steal information about upcoming transactions. If you’ve received an email and you’re unsure of its validity, contact your escrow company immediately. Ask them to confirm they sent you the email, the contents of the email, and the address it came from. Sometimes scammers will simply change a letter in their email address to look like another.

For example
Actual Email            Scam Email
homes@realestate.comhomes@realsetate.com

At a quick glance, the email address may look like the agent you’ve been communicating with, but by looking closer you can see that there is a slight typo in the second email.

 

Remember, knowledge is power, but it’s action that truly makes a difference. Spread the word and share this video with your friends, family, and colleagues. Together, we can build a community that is vigilant, well-informed, and resilient against escrow fraud.

Don’t let the fraudsters win. Watch the video, learn, and join the fight against escrow fraud today!