12/31/24

One of our goals over the last year was to raise more awareness about wire fraud with our customers and partners. While our teams accomplished that goal, the larger mission of educating customers and the public about wire fraud remains.

Why? It’s not going away. Instead, cybercriminals and their schemes are evolving. Scammers continuously adapt their tactics to target buyers, sellers and agents. As we look toward 2025, it’s critical to stay informed on the evolving nature of these schemes. Here are four tips to help you stay more secure in the new year.

Scammers are leveraging AI to create more sophisticated phishing attacks. We’ve mentioned this before, but Artificial Intelligence is becoming a tool of choice for fraudsters. Scammers are using AI to craft convincing emails, texts and even phone calls that mimic real estate agents, title companies and lenders with near-perfect precision. These AI-generated communications are harder to identify because they sound authentic, include personalized details and often lack traditional red flags like poor grammar or typos.

Tip for 2025: Double-check all communications, especially requests involving money transfers. Use secure, verified channels for communication rather than relying on email alone.

Real estate transactions remain a frequent target for cybercriminals. OK, this isn’t new information. However, we wanted to include it to hammer home the importance of protecting your escrow account. Fraudsters gain access to these accounts through phishing or malware attacks and manipulate wire instructions, diverting funds intended for closing.

Tip for 2025: Verbally confirm wire instructions with the escrow officer using a known phone number. Educate clients on the importance of verifying these details independently.

Deepfakes are being used to impersonate key contacts. Here’s another way innovation is being used for evil. Deepfake technology is no longer limited to videos on social media. It’s also helping criminals pretend to be real estate agents, title company representatives and even attorneys. Scammers can create convincing video or audio messages that appear to come from trusted individuals, instructing clients to send funds to fraudulent accounts.

Tip for 2025: Always validate unexpected requests for wire transfers, even if they appear to come from a trusted source. Implement additional security measures like two-factor authentication (2FA) and multi-step verification processes.

Cybersecurity training is more important than ever. As scams grow more advanced, industry professionals must remain proactive in their defenses. Regular cybersecurity training can equip real estate agents, brokers and title companies with the knowledge to recognize and prevent wire fraud. With ongoing education, professionals can better guide their clients on safeguarding transactions.

Tip for 2025: Schedule quarterly cybersecurity training for your team and educate clients about wire fraud risks at the start of every transaction. Ensure all parties involved know what to look for and how to respond to suspicious activity.

By understanding how scammers operate and taking a proactive approach, you can reduce the risk of falling victim to wire fraud in the year ahead. So, let’s keep the conversations about scams going well into 2025! Our teams are always here to verify information for you and your clients. Reach out to us anytime about title, fraud or anything else real estate!