On real estate

Cyberattacks continue to be in the news, as we learned recently that hackers had gained access to at least 500 million Yahoo email accounts.

What do they do with the information? Along with many other types of malicious schemes, enterprising hackers have discovered how to trick unsuspecting buyers and sellers into diverting funds intended for escrow closings.

In May 2015, the National Association of Realtors issued an alert regarding a sophisticated email wire fraud hitting the real estate industry, and incidents of online scams have continued to rise.

Hackers send an email that appears to be from the real estate agent or escrow company informing the buyer or seller that there has been a change in wiring instructions. The altered emails from the hacker appear to be genuine, containing the agent’s or escrow company’s email information and/or logos.

Funds are then wired to an offshore bank account, which is quickly cleared out and effectively non recoverable.

In a recent variation of this scam, our escrow company in Pasadena received an email from a seller, asking to wire the proceeds of nearly $1 million to a different bank account. When the escrow officer called the seller to verify the new bank account, they were told no such account existed. Thank heavens for that old school communication device called the telephone.

Hackers can access email accounts by snagging passwords through public Wi-Fi or via email solicitations that appear to be from senders you know, and then comb through emails searching for information about home sales and upcoming closings.

Protect yourself and your real estate transaction from cybercrime by following a few important security measures.

Never send wire transfer information via email. Prior to wiring funds to anyone, pick up the phone and verify the intended recipient via a verified telephone number on a document.

Do not trust contact information in unverified emails. The hackers will recreate legitimate-looking signature blocks with their own telephone number inserted. Fraudulent communications may include detailed and accurate information pertaining to the real estate transaction with file numbers, dates, names and addresses, either because the thief has successfully created a sham account, or because he or she is sending the email from a truly legitimate-albeit hacked-account.

Never click on any links in an unverified email that may contain viruses and other malicious spyware that can make your transaction vulnerable to attack.

Never conduct business over unsecured Wi-Fi.

Trust your instincts: If an email or telephone call ever seems suspicious, refrain from taking any action until the communication has been verified as legitimate. Be watchful of spelling errors, grammar problems, or inconsistent information in emails you receive.

Start from the assumption that any email in your in-box could be a targeted attack from a criminal. And make sure to implement the most up to date firewall and anti-virus technologies in any computers you use for business transactions.

When it comes to cybersecurity, always err on the side of caution.

Adriana Donofrio Podley Properties Glendora (626) 926-9700 • adrianad@podley.com