Mortgage Closing Scams: How to protect yourself and your closing funds
The FBI has reported that scammers are increasingly taking advantage of homebuyers during the closing process. Through a sophisticated phishing scam, they attempt to divert your closing costs and down payment into a fraudulent account by confirming or suggesting last-minute changes to your wiring instructions.
- I personally will never send you wire transfer information.
- The title company will ask that you fill out your mortgage information. Make sure to verify the account number with the title company before they pay off your loan.
- Before you wire any funds, call the title company and verify their banking instructions.
- Do NOT email financial information. Email is never a secure way to send financial information. Most title company will use online portals for all correspondence.
Your mortgage closing checklist
What to do if it happens to you
- Contact your bank or wire-transfer company immediately. Ask for a wire recall. Reporting the error as soon as possible can increase the likelihood that you’ll be able to recover your money.
- File a complaint with the FBI. Contact the FBI’s Internet Crime Complaint Center at www.ic3.gov .