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We urge all attorney agents to educate clients and prevent them from falling victim to these devastating crimes.
The number of instances and volume of money being diverted away from unsuspecting parties through wire fraud schemes is staggering. Since it began in 2000, the FBI Internet Crime Complaint Center (FBI IC3) has recorded more than 8 million complaints, an average of 2,412 per day, and climbing. The most recent data from FBI IC3 includes 880,418 reported incidents in 2023, a 10% increase over 2022.¹
Cybercriminals are sophisticated and relentless in their efforts, and because of the amount of money involved in real estate transactions, fraudulent emails that appear to be from the real estate agent, attorney, or title insurance company, are a prime method for fraudsters.
Attorneys Must be Vigilant in Efforts to Protect Clients' Funds
While attorneys and title companies are aware of the risks, many clients are not. It is critical you take steps to ensure your clients understand the processes they must complete before sending funds via wire.
Remind your clients how to protect against wire fraud every chance you get, in all communications:
- retention agreements;
- email signatures;
- closing confirmation letters; and
- in-person and phone conversations.
See Resources for You and Your Clients, below, for additional information.
Remind Your Clients How to Protect against Wire Fraud
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Never wire money based on an email: Clients should never rely solely on emailed wire instructions, regardless of how legitimate the email appears.
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Always verify phone number and wire instructions via the title company’s website: Clients should always check the title company's website to confirm the phone number used for verbal verification of instructions is the company's published phone number. Additionally, most title companies (including Advocus) post their wire instructions on their websites, which is one of the most reliable sources to confirm instructions. Clients should never trust wire information that does not come directly from the title company.
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Always call to confirm: Clients must always directly call the title company using a verified phone number to confirm the wiring instructions before initiating any transfer. This additional step of verification is crucial in preventing fraud.
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Be suspicious: It is not common for title companies to change wiring instructions and payment information.
NOTE: Advocus does not send wire instructions via email. Never use contact information supplied in an email you receive for confirmation, including wire instructions for transmitting funds to the closing agent and for making payoffs of mortgage loans.
Encouraging your clients to be vigilant and proactive can prevent devastating financial losses. Please take immediate action to implement these precautions in your communications and processes.
Resources for You and Your Clients
Advocus Flyers: Download and print, or use as links:
ALTA Video for Clients: Protect Your Money from Wire Fraud Schemes When Buying a Home
The following video was produced by the American Land Title Association (ALTA). Click the play symbol below to view; share with clients by copying and pasting this link: https://www.youtube.com/watch?v=ek4TwC9owwY
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