I work at a bank in a large metropolitan area. Recently we've seen a couple clients fall victim to a scam that has caused us to modify our standard procedure a little.
Basically, through a handful of potential channels, the scammer finds a mark about to purchase a home through a title company. A couple days before the closing date the scammer will send the buyer a very professional looking email with wire closing instructions. The mark will then go into their bank, send the money, and not find out for a few days that the money did not go to the correct place.
When sending a wire the bank has no way of verifying the information that you provide outside of basic routing number information. Additionally, wires by nature are not returnable. There is a very short window when they can be reversed and even then it is not a guarantee.
We've started calling title companies and closing agents before sending closing wires to verify that the information that the client received is legitimate and thankfully at this point we've prevented one client from losing a 30k down payment.
TL;DR - Call your title company directly to confirm your wire instructions before sending money for a new home purchase.
Submitted July 14, 2017 at 08:31AM by sreskimo http://ift.tt/2uhhaQL
