• Home
  • Lending Tips
  • Marketing
  • Products
  • Stories
  • Operations

CU Members Matters

Welcome - click here to learn more about CU Members Matters
  • About
  • Contact
  • For Your Members
You are here: Home / For Borrowers / Mortgage Closing Scams: How to protect yourself and your closing fund

Mortgage Closing Scams: How to protect yourself and your closing fund

by cumembers Leave a Comment

Closing on a new home can be one of your most memorable life moments. It’s the final and one of the most critical stages in the home-buying journey, but with the exchange of key paperwork and a sizable down payment, it can also be a stressful experience, especially for first-time homebuyers.

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. In fact, reports of these attempts have risen 1,100 percent between 2015 and 2017, and in 2017 alone, there was an estimated loss of nearly $1 billion in real estate transaction costs.

While it’s easy to think you may not fall for this kind of scam, these schemes are complex and often appear as legitimate conversations with your real estate or settlement agent. The ultimate cost to victims could be the loss of their life savings.

Here’s what you should know and how to avoid it happening to you.

How it works

Scammers are increasingly targeting real estate professionals, seeking to comprise their email in order to monitor email correspondences with clients and identify upcoming real estate transactions. During the closing process, scammers send spoofed emails to homebuyers – posing as the real estate agent, settlement agent, legal representative or another trusted individuals – with false instructions for wiring closing funds.

How to avoid a mortgage phishing scam

    • Identify two trusted individuals to confirm the closing process and payment instructions. Ahead of your mortgage closing, discuss in person, or by phone, the closing process and money transfer protocols with these trusted individuals (realtor, settlement agent, etc.). Be cautious about exchanging any details about your closing over email. You may want to use this opportunity to also create a code phrase, known only by th​ese trusted parties, if you need a secure way to confirm their identities in the future.
    • Write down their names and contact information. Use the Bureau’s Mortgage Closing Checklist to list these individuals and their primary phone numbers.
    • Before wiring money, always confirm instructions with your trusted representatives. Never follow instructions contained in an email. Verify the closing instructions, including the account name and number, with your trusted representatives either in person or by using the phone number you previously agreed to.
    • Avoid using phone numbers or links in an email. Again, scammers can closely replicate the email address, phone number and format of an exchange from your agents. Avoid clicking on any links or downloading attachments without first confirming with your trusted representatives.
    • Do NOT email financial information. Email is never a secure way to send financial information.
    • Be mindful of phone conversations. It may be difficult to identify whether a phone call is fraudulent or legitimate. Scammers may call and ask you to verify your personal or financial information. When in doubt, always refer back to your trusted professionals to confirm whether it’s legitimate.

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​.​

While it can be easy to think you’ll never fall for a scam of this nature, the reality is that it’s becoming more and more common, and the results can be disastrous for eager homeowners. By being mindful and taking a few important steps ahead of your closing, you can protect yourself and your loved ones.​

Original article: https://www.consumerfinance.gov/about-us/blog/mortgage-closing-scams-how-protect-yourself-and-your-closing-funds/​​

Share this:

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Google+ (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to email this to a friend (Opens in new window)
  • Click to print (Opens in new window)

Related

Filed Under: For Borrowers, For Your Members Tagged With: "Cyber Awareness", "Cyber Security", Cyber Smart, Cybersecurity Awareness Month, Cybersecurity Tips, Mortgage Phishing Scam, Phishing

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Subscribe to Our Newsletter

Check your inbox or spam folder to confirm your subscription.

CU Members Mortgage logo
Visit Us On TwitterVisit Us On FacebookVisit Us On Linkedin

Industry Resources

  • CU Members Mortgage
  • ACUMA
  • CUES
  • CUNA
  • MBA
  • Mortgage Action Alliance
  • NCUA
  • CFPB Toolkit

CU Members News

CU Members Mortgage Continues 2021 Webinar Series with Smooth Mortgage Lending Transactions Featuring Blaine Rada

CU Members Mortgage Continues 2021 Webinar Series with Smooth Mortgage Lending Transactions Featuring Blaine Rada

By cumembers Leave a Comment

CU Members Mortgage Hires Two New Executive Sales Consultants

CU Members Mortgage Hires Two New Executive Sales Consultants

By cumembers Leave a Comment

More CU Members News

CU Members Twitter Feed

CU Members MortgageFollow

CU Members Mortgage
CUMembersMtgCU Members Mortgage@CUMembersMtg·

Come say hello to Conrad John at Tennessee Credit Union League Annual Meeting! He would love to share with you what we have ahead at CU Members. #tennesseecreditunionleague #peoplehelpingpeople #creditunionserviceprovider

CUMembersMtgCU Members Mortgage@CUMembersMtg·

5.0 star review received on http://Experience.com for Greg Gardon by Joyce T - He was always there for us. He answered every question and helped us fill out everything we needed help ...
https://pro.experience.com/reviews/greg-gardon/e57ed3a1-5be3-40cd-ad67-4a8de6f626ba?V=1652747856

CUMembersMtgCU Members Mortgage@CUMembersMtg·

5.0 star review received on http://Experience.com for Rudy Huling by Helen G - My experience with Mutual Credit Union Mortage was absolutely WONDERFUL!!!!! Rudy, you are the absolute ...
https://pro.experience.com/reviews/rudy-huling/fe1e6273-af91-4818-81a8-b816bb3f434a?V=1652715891

CUMembersMtgCU Members Mortgage@CUMembersMtg·

5.0 star review received on http://Experience.com for Jill Crawford by Michael B - Overall end to end experience was great.
https://pro.experience.com/reviews/jill-crawford/f7dd40d2-c01a-45cf-b776-8d531cf6997c?V=1652715104

Quick Links

  • Contact Us
  • About
  • For Borrowers
  • For Borrwers with Closed Loans

Recent Posts

Homebuying Migration to Suburbs & Exurbs is an Opportunity for CUs

Small Ways to Save Every Day

Mortgage Closing Scams: How to protect yourself and your closing fund

Visit Our Website
Equal Housing Lender
Copyright © 2022 | CU Members Mortgage
CU Members Mortgage is a division of Colonial Savings, F.A. NMLS 401285

CU Members Mortgage and Colonial Savings do not endorse or recommend any third party companies or sources of information. While we publish content about various financial topics, we do not provide tax or financial advice of any kind. Consult your financial or tax advisor for your specific situation. We are not responsible for the content or security of any third-party link published on Colonial Wallet Wisdom. The site or sites you may be linking to may be more secure or less secure than our own. The information herein is subject to change and is not an offer to extend consumer credit as defined by Section 1026.6 of Regulation Z. Mortgage rates and terms subject to change without notice. All Rights Reserved. Includes copyrighted material of IMakeNews, Inc. and its suppliers. Privacy Policy Notice

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.