Homebuyer beware: FTC, Realtors issue warning on mortgage closing cost phishing scheme

Real Estate

Homebuyer beware: FTC, Realtors issue warning on mortgage closing cost phishing scheme

Hackers pose as agents or title companies to steal mortgage funds.

The Federal Trade Commission and the National Association of Realtors issued a warning Friday to consumers, advising them that they could be the next victim of a mortgage closing cost phishing scheme.

According to the FTC and NAR, scammers are hacking the email accounts of consumers and real estate professionals to obtain information about upcoming real estate transactions.

Once they have access to the consumers or real estate professionals’ email account, the hackers ascertain the closing dates.

Then, the scammers send an email to the buyer, posing as the real estate professional or title company, stating that there has been a “last minute change” to the wiring instructions.

The scammers’ email instructs the buyer to sent the funds to a different account, which belongs to the scammers.