Protecting Your Security Deposit

Protecting Your Security During Closings
Read These Tips to Protect Yourself During Your Closing

It’s important that buyers and sellers learn how to maintain security throughout the entire closing process, particularly surrounding the wire transfer of funds.

What is a Wire Transfer?

A wire transfer is the electronic transfer of funds from one bank or credit union to another. Usually wire transfers or cashier’s checks are the only options for exchanging money in the purchase of a home because the money is transmitted within one to two days.

What is the Safest way to Transmit Information?

When closing, never communicate wire instructions via email. Always do this over the phone. Phishing scammers could convince you to send sensitive bank account information by posing as an escrow officer.

The email scamming you could contain information that appears to be correct. Do not trust this – it’s better to be safe than sorry. Reference the original, printed contract given to you by the title company for phone numbers. Contact your realtor if something seems off with communication from the title company to re-verify the title company’s contact information.

How do I Identify Potential Email Fraud?

Major red flags in emails are:

• Frequent spelling errors
• A logo that looks odd or askance in some way
• Lack of a notice about fraud at the bottom of the email

What Could Happen if I’m not Careful With Wire Transfer Information?

If a criminal manages to scam you and steal your bank account information, they can drain your bank account and leave you with nothing. If wire fraud happens to you, you should report it directly to the FBI.