By Janet Moe & Maria Brandenburg | Great American Title
A hot topic for investors and/or anyone receiving funds via wire transfer is the potential for wire fraud. Due to the ongoing increase in wire fraud schemes, it is pertinent to be aware of the various scenarios and to follow some tips to protect against wire fraud.
- When an investor, seller, or wholesaler is receiving funds in a real estate transaction, it is important to avoid dictating your wiring instructions to the title company by phone or text. Therefore, wiring instructions should be in writing and in the name of the party receiving the funds.
- Title companies should always call to verify your wiring instructions. Even though the title company has already been provided with a written copy of your instructions via email.
- Before providing written wiring instructions to the title company, confirm with your bank the accurate ABA routing number. Not all checks reflect the accurate ABA number.
- In an assignment transaction, it is always wise to have the assignment fee wired.
- When title companies are handling transactions involving assignment fees, the title company should email the party receiving the assignment fee, and disbursement instructions to be completed. The title company should also verify the wiring instructions with the entity receiving the assignment fee.
*Note, in an assignment transaction, provide all contact information to the title company for the party receiving the assignment fee, i.e., name, phone number, email, and address.
Following these tips will minimize the risk of wire fraud. We hope you find this information useful and look forward to facilitating your next transaction. For escrow questions, please contact Janet Moe. For any marketing support, please contact Maria Brandenburg.