Real estate purchase scams, sometimes called mortgage closing scams, are a form of BEC (business email compromise). The homebuyer gets a message they believe is from their real estate agent, loan officer or the escrow company instructing them to wire their down payment into a bank account controlled by the scammer. Because the attacker knows the date of closing, the amount of the down payment, the total purchase price, the property address and every other detail about the transaction, the homebuyer is unlikely to be suspicious.

If a scammer targets you for your down payment, little or nothing in the email will tip you off to the fraud. Never send large sums of money based solely on email instructions. Be especially wary about last-minute changes in instructions. If you’re an individual buying a home, pick up the phone and call the title agent to confirm the instructions, or, better yet, go to the office in person to pick up the instructions. Do not reply to a questionable email asking, “Is this the correct account?” and don’t simply call the number at the bottom of the email.

The article is written by John Wilson for Forbes. You can read the full article here.