Experts Warn Buyers Against Scammers Stealing Home Closing Costs: How to Protect Yourself

Posted by Staff Reporter ( on May 05, 2016 06:17 AM EDT
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The advancement of technology has definitely made things easier and more convenient for people. Unfortunately, scammers are also using this in order to steal from other people. Experts are warning homebuyers against scammers who are posing as real estate agents or lawyers to steal their closing costs. How can you protect yourself?

Technology has done such a great help in making things easier, more convenient and efficient for people. As previously reported here on Realty Today, even the process of buying a home can be done remotely.

Remote closing is now being used by more buyers because of the convenience that it brings. Instead of skipping work and traveling to a certain distance just to close on their new home, buyers can simply send their closings via an app or through an arrangement with your real estate agent or lawyer.

Unfortunately, the National Association of Realtors and the Federal Trade Commission warned buyers from scammers who are posing as their agents or lawyers during their closing date. According to National Mortgage News, scammers are hacking into consumers' and real estate agents' emails in order to determine details of upcoming transactions.

Scammers would then pretend to be the same agent or lawyer and send a message to the client informing them that the closing details have been changed. Buyers would sometimes be tricked into believing the said emails because scammers nowadays are good at mimicking websites and emails.

"It might seem to be coming from a bank," said Tg Glazer, president of New Jersey Association of Realtors.

Buyers are, therefore, requested to verify the said information with their real estate agent or lawyer before believing any changes indicated in the email. Buyers are also advised never to include their financial information in their email because it is not as secure from hackers. It is also better to search for the bank's website from a search engine instead of clicking on the internal link indicated on the email.

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