REAL ESTATE INVESTING – What is Wire Fraud? How to avoid Wire Fraud when Investing in Real Estate
July 18, 2019
Wire Fraud includes any form of financial fraud involving the use of telecommunications or information technology. Currently one of the biggest threats to real estate investing is real estate wire fraud. The way real estate wire fraud is most commonly carried out, is that a person involved in a real estate transaction, such as a real estate attorney or realtor, has his or her email account compromised by malicious software sent by a fraudster whom can then monitor the realtor’s emails looking for upcoming transactions. Once the fraudster identifies an upcoming closing date, a legitimate-looking email message is sent to the real estate investor advising that there has been a change of plans. Specifically the email advises that the real estate investor must wire the down payment to a bank account belonging to the seller, while the bank account truly belongs to the fraudster and is typically overseas. Once the funds are transferred to the fraudster’s offshore account, it is out of the reach of U.S. law enforcement.
How to avoid Wire Fraud when Investing in Real Estate – Steps real estate investors should take to protect against real estate wire fraud:
If you or someone you know, is considering a real estate investment opportunity or has fallen victim to real estate wire fraud we invite you to call us today at 619-432-5145 for a free consultation with one of our experiencedWire Fraud Attorneys and Investment Lawyers.