More and more phishing scams are targeting real estate professionals and their clients, attempting to dupe you out of money. There are several steps to take to make sure that you and your clients aren’t the next victims.

The National Association of REALTORS® (NAR) issued an all-member alert in December warning members of the latest email phishing attempt targeting the industry.  The latest is part of a string of phishing scams targeting the real estate industry in business email compromise that focus on both businesses and individuals to get them to do wire transfer payments.

Law enforcement, along with NAR and other business trade associations, have been meeting to address the security threats posed to businesses.

How do you keep you and your transactions safe? The FBI offers some of the following suggestions through its public service announcement warning businesses:

Verify all requests of a change in payment type and location. Scammers often request that payments that are originally scheduled for check deposit be made via wire instead. Also, they request changes to the original recipient’s financial information. Real estate professionals and their clients should verify with their main contacts whenever they receive information via email that is involving financial changes or financial solicitations.

Be wary of communication that is exclusively over email. Scammers will take public information available on real estate listing sites and use it to then target victims. They may see listings that are “under contract” and then use the contact information of the real estate agent to insert themselves into the transaction, posing as the agent. “Be wary of any communication that is exclusively email based and establish a secondary means of communication for verification purposes,” the FBI writes.

Set a code phrase with main contacts. Victims have reported also receiving phone calls from scammers requesting personal information for verification purposes. To verify the person is correct, encourage clients to establish code phrases that could be used to verify two legitimate parties, such as client to real estate agent or financial institution to client.

Act quickly if you think you’ve been scammed. Time is critical. Contact the financial institution first and request a recall of funds. Then, contact your local FBI office and report the fraudulent transfer. File a complaint at www.ic3.gov or bec.ic3.gov. The IC3 will assist the financial institutions and law enforcement in the recovery efforts of the funds.

Source: NAR