You’re ready to buy your home and you need to wire the money from your back to the recipient (you’re told where to send it and provided with instructions).
There are certain procedures you should follow when wiring money. Real estate transactions generate lots of information that moves back and forth between all of the interested parties. How can you be confident that your deal is secure?
- Make sure that all interested parties understand the “red flags” that may be indicative of fraud.
- Ensure that everyone is following secure email practices (think about where the email came from and does it look legitimate – was it sent from a system that makes you verify your email address and/or identity).
- Inform the recipient of a wire transfer prior to wiring money; make a phone call to the recipient to verify the wiring instructions. Validate, validate and validate!
- Always independently verify contact information.
- Remain very aware and point out anything that seems suspicious.
What is something goes wrong during a wire transfer?
If an incident does occur during a wire transfer, there are steps to take to mitigate the damage done. When you move into damage control mode, remember the following:
- Immediately contact the financial institution to stop the funds if the money wire has already been sent.
- Data breach notification laws vary by state, but it’s always best practice to notify all potentially affected parties
- Change your passwords and usernames (where appropriate).
- Notify an attorney and the police about the incident.
- Contact the FBI Internet Crime Complaint Center.
- File a report with your associations.