According to wire fraud protection firm CertifID, roughly one in 10 Americans today is being targeted for real estate fraud, with median consumer losses exceeding $70,000 per incident resulting from stolen buyer down payments and seller net proceeds. 

As deepfake technology makes it easier for cybercriminals to create more convincing phishing emails, the sad fact is that more than half of consumers reporting said they were not adequately made aware of wire fraud risk before finalizing their real estate transaction. This lack of counseling is a major disconnect, as consumers rightly believe real estate professionals should be responsible for educating them about the risks of real estate wire fraud. 

Security teams worldwide are examining identity-first approaches such as threat exposure and third-party risk management programs and using artificial intelligence (AI) to foil many of the phishing schemes it helps generate. But while the focus of cyber security experts is on preventing attacks, the hard truth that consumer education remains the first and most important step in protecting against wire fraud. 

Industry professionals can take these steps to educate and protect consumers from cybercrime: 

• Advise customers to confirm all wiring instructions verbally. They should pick up the phone to confirm with someone they know at a recognized number before transferring any funds. 

• Warn them not to email financial information. They will never be asked to do so by their agent, brokerage, or title company. 

• Tell them to make sure the site is secure before giving financial information on the web. First, the URL should begin with “https.” Second, instead of clicking on a link in an email to go to an organization’s site, look up the real URL, and type in the web address yourself. 

• Be cautious about opening attachments and downloading files from emails. Such files can contain malware and weaken your computer security. Always confirm the sender before opening.

• Keep browser and security software up to date. This can be critical to evading cyber-attacks. 

Real estate professionals must take proactive steps to inform and protect their clients, emphasizing the importance of verifying wiring instructions, avoiding email for financial information, ensuring secure websites, being cautious with email attachments, and keeping security software updated. By prioritizing these educational efforts, the industry can better safeguard consumers against the growing threat of cybercrime.

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This material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy. This material is not intended to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice. 

About Bobbi Pronin

Barbara Pronin is an award-winning writer based in Orange County, Calif. A former news editor with more than 30 years of experience in journalism and corporate communications, she has specialized in real estate topics for over a decade. 

Bobbi is not an employee of Anywhere Integrated Services or affiliated with its title companies.