Buying your first home is an exciting milestone, but it’s important to stay vigilant against potential scams during the closing process. Here are some key points to keep in mind:
Closing funds wire fraud
How it Works: Scammers set up this scam by hacking into computers and stealing details of mortgage closings. A few days before, they send home buyers a fraudulent email with instructions to wire their closing funds to an account that’s not related to the transaction.
Prevention: To avoid this scam, rely on your real estate agent and lender to contact you with any changes to closing, and contact them if you receive this type of email.
Home title theft
How it Works: Scammers steal personal information about homeowners and forge documents with this information. These forgeries transfer the homeowner’s property title to themselves and are filed at the county recorder’s office. Next, they may try to obtain a home equity loan against the property or even sell it.
Prevention: To protect yourself against title theft, contact your county recorder’s office and ask if title fraud alerts are available. You’ll be notified if anyone attempts to alter your home’s title. Title lock services from a security protection provider are another option.
Other tips
- Stay skeptical: Anyone who’s legitimate doesn’t try to rush customers or ask for passwords. Hang up on anyone who does.
- Be cautious with emails: If you receive an email with a link to an unknown business website, don’t click on it. This could trigger a malware download to your computer.
- Payment methods: Scammers often ask for payments to be made with non-conventional methods, including gift cards and cryptocurrency.
If you would like to learn more about potential financial scams, learn more about how to protect yourself from cybercriminals and keep your personal information and finances safe.
Thinking about purchasing a home? Core Bank can set you up with the tools and knowledge to learn about the different types of home loans and find the one that best fits your needs.
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