Fraud Alert: Remind Customers to Watch Out for Mortgage Closing Scams
By TLTA Staff
July 12, 2017
Summer is a busy homebuying season. Unfortunately, that means title insurance professionals and their customers need to watch out for email phishing scams, as the CFPB noted in a recent fraud alert article.
According to reports, one of the current scams targets homebuyers who are nearing the closing date on their mortgage loan. The scammers attempt to steal the homebuyer's closing funds – for example, their down payment and closing costs – by sending the homebuyer an email posing as the homebuyer's real estate agent or settlement agent (title company, escrow officer or attorney). The email falsely claims there has been a last-minute change in the closing process – for example, claiming that a check is no longer acceptable or that the wiring instructions have changed. It instructs the homebuyer to wire or otherwise electronically transmit the closing funds to an account that the scammers control.
Read More »