The bank manager of a large Florida branch told a friend of mine that, “Every day we stop one of our elderly customers from trying to wire $1,500-$4,500 to a Nigerian Prince who will send them millions of dollars in return, that will never arrive.” But this isn’t the only wire transfer scam. Business servers are often targeted, and lately, an increasing number of real estate wire transfers to purchase homes are being intercepted by thieves.
Thieves target and hack into the e-mail accounts of realtors and title companies. Once they discover an upcoming purchase, they send an e-mail (posing as the realtor or closing agent) to the buyer stating: “The home closing has been moved up, we need your funds today, wire the money to this different account.” Once you send it your money is long gone – because there is almost no law enforcement you can turn to for help to recover any money. The local Sheriff isn’t equipped to chase down the money, and the FBI isn’t successful and tells some victims that they are too busy.
My own bank branch recently warned me about wire fraud for a recent transaction that I was making; but I had already dealt with this party several times before. The banker told me that a few days earlier, she had stopped a customer from making a wire transfer who was buying a home. The banker asked the customer a few questions before finalizing the wire, which prompted a quick phone call to their realtor. It turned out that the customer was just about to unknowingly transmit a little over $400,000 to a scammer.
When sending or receiving wire transfers, triple check with everyone involved to make certain the money is going to the correct account and routing number. Make arrangements in person when it is possible, verify over the phone, and then be on alert for any fake instruction changes from a last-minute e-mail.