How to Protect Yourself from a Growing Real Estate Scam

One of the most dangerous and growing scams in real estate involves cyber criminals targeting buyers and title companies during home transactions. This scam is so sophisticated that it resulted in a Silicon Valley executive losing almost half a million dollars. Here's how it works and how you can easily protect yourself.

In a typical home purchase, the buyer sends funds to a title or escrow company, which holds the money until the deed is transferred from the seller to the buyer. This ensures that both parties fulfill their obligations—money for the deed and deed for the money. But scammers are now hacking into email systems of title companies, real estate agents, and even home inspectors, to monitor the progress of transactions. They gather details like buyer and seller names, amounts, and escrow information.

At the right moment, they send a fake email to the buyer, pretending to be from the title company. The email includes all the right logos, addresses, and details, asking the buyer to wire the funds to a fraudulent account. By the time the buyer realizes they’ve been scammed, the money is gone—usually with no way of recovering it.

How to Avoid This Scam:

Always Verify Wiring Instructions Directly: Go to the title company in person and ask for the wiring instructions on official letterhead. Don’t rely on email.

Test the Wiring: Before sending the full amount, wire a small amount (like $10 or $100) to the provided account. Once the title company confirms they’ve received it, you can be more confident the information is legitimate.

Never Do It by Phone: Scammers often use fake phone numbers that appear to be from the title company. Always verify in person.

Make Multiple Trips If Necessary: It might take an hour of your time, but it’s worth it to safeguard your hundreds of thousands of dollars.

For more detailed instructions or help, you can visit ActualHuman.com for a one-on-one consultation with a real estate expert to guide you through the process.

Protect yourself from this scam and take the extra steps to ensure your transaction goes smoothly. If you found this video helpful, check out other videos on our channel for more useful advice on real estate scams and transactions.