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There are many reasons why I do not publish each and every fraud story submitted. In some instances the story is very similar or the same to a story already published. Sometimes the details of the story cannot yet be published in order to protect the details of the transaction. This does not mean these schemes are not being attempted all over the country, nearly every day. Here are the top three schemes:
Cybercrimes
Our country and industry have come under attack by cyber crooks. I alerted you of these types of crimes beginning in 2012 and since then have published several examples of the schemes we have become aware of. They are:
These schemes can be very costly to our Company. They require a large number of resources to attempt to recover any losses, investigate the scams in an effort to stop them from happening again, and loss of reputation.
The most troubling part about these scams is the fact we can only do so much to protect ourselves and our customers from these schemes. Many of the reports we receive about these scams are the result of one of our customer's email accounts being hacked into. This is why it is crucial you verbally verify banking information received via email. It only takes a few minutes to do, but can save in so many ways if you do.
Holding Escrows
Although our Companies do provide escrow and title services, it does not mean we handle escrow only transactions. It is more important than ever to understand the risks involved. Three articles I published in 2014 highlight the risks associated with holding escrows, especially when they do not involve the purchase of real property. Those articles were:
It is important to note, these are just the articles I published. Your escrow administrators have received notification from offices all over the country that have identified the red flags of these schemes and not proceeded with the transaction. They also receive notification from offices that did fall victim to this crime. The Company is working with law enforcement in an effort to recover stolen funds and bring the criminals to justice.
Counterfeit Checks
Real estate transactions are a huge target for fraudsters. The sad part is they would not be such a target if the criminals did not have success with their scheme. I have published seven stories about fraudulent checks but could publish one or more each and every month. Review these articles to become more familiar with the red flags associated with this scheme.
The reason I remind you about these crimes is because I do not want you to think the stories I publish are isolated, because they are not! These three scams are attempted all the time, all over the country. Do not think you are immune. Be sure to familiarize yourself with the red flags so you can notice them right away and not waste any of your time or your customer's time working on files which will not close.
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