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.

Tips:

• 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.

For more information

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 .