Stay Ahead of Hackers

During the economic downturn, real estate pros were on high alert for scams by perpetrators who preyed on cash-strapped home owners desperate to stave off foreclosure. Today, a new wave of scammers is breaking into people's e-mail accounts to cull information about pending deals.

The hackers—posing as sellers, title company representatives, or even other real estate agents—instruct buyers, agents, or attorneys to transfer funds related to the purchase to accounts belonging to the scammers, potentially swindling victims out of sizable sums. In addition, agents lately have been the target of ruses involving overseas cash "buyers" who ask for bank account information so they can supposedly wire deposits.

Whatever the technique, hackers are finding ways to trick buyers, sellers, and practitioners by e-mail or phone to hand over large amounts of money. In many cases, the heists could have been prevented if the victim had verified that the instructions were legitimate before proceeding. "For anyone involved in real estate transactions, the key is vigilance and making sure that what is happening should be happening," says Peter Bolac, trust account compliance counsel for the North Carolina State Bar, which has received multiple reports of fraud involving wired funds in real estate transactions, including one involving a loss of $200,000. "Everyone involved in handling [transactions] has a duty to be sure their accounts are secure" and the procedures they follow include safeguards to protect clients.

Hacking incidents, sometimes referred to as "spear phishing," have disrupted transactions in a number of states, including California, New Jersey, and North Carolina.