One of the fastest growing cybercrimes in the U.S. is real estate wire fraud. According to FBI data, approximately 11,300 people were victims of wire fraud in the real estate and rental sector in 2018 (a 17 percent increase over 2017), with losses of more than $150 million.
Wire fraud has been increasing steadily over the years, and in the current environment — with many closings being handled online — the risk is higher than ever. If you’re in the middle of a real estate transaction, it’s important to know how wire fraud happens and how you can protect yourself.
What is wire fraud?
When buying a home, you’ll typically need to pay some closing costs or fees as part of the purchase. Real estate wire fraud occurs when a thief or hacker somehow convinces you, the buyer, to send your closing costs their way. For victims of wire fraud, it’s often difficult, if not impossible, to get their money back.