CFPB Article: “Mortgage Closing Scams: How to protect yourself and your closing funds”
The Consumer Financial Protection Bureau recently released an article that can be found by clicking this link.
In this article, they provide some great information on how to protect yourself from becoming a victim of wire diversion fraud. Please read and share!
Highlights from the article “Mortgage Closing Scams: How to protect yourself and your closing funds” By Melissa Yu:
How to avoid a mortgage phishing scam
- Identify two trusted individuals to confirm the closing process and payment instructions. Ahead of your mortgage closing, discuss in person, or by phone, the closing process and money transfer protocols with these trusted individuals (realtor, settlement agent, etc.). Be cautious about exchanging any details about your closing over email. You may want to use this opportunity to also create a code phrase, known only by these trusted parties, if you need a secure way to confirm their identities in the future.
- Write down their names and contact information. Use the Bureau’s Mortgage Closing Checklist to list these individuals and their primary phone numbers.
- Before wiring money, always confirm instructions with your trusted representatives.Never follow instructions contained in an email. Verify the closing instructions, including the account name and number, with your trusted representatives either in person or by using the phone number you previously agreed to.
- Avoid using phone numbers or links in an email. Again, scammers can closely replicate the email address, phone number and format of an exchange from your agents. Avoid clicking on any links or downloading attachments without first confirming with your trusted representatives.
- Do NOT email financial information. Email is never a secure way to send financial information.
- Be mindful of phone conversations. It may be difficult to identify whether a phone call is fraudulent or legitimate. Scammers may call and ask you to verify your personal or financial information. When in doubt, always refer back to your trusted professionals to confirm whether it’s legitimate.