New Fraud Scheme Targeting Real Estate Law Firms

The American Land Title Association recently sounded the alarm about a new fraud scheme targeting real estate law firms and settlement companies. There are common factors with multiple red flags that you should be on the lookout for:

• Impersonating the bank’s fraud department, the fraudster calls using a spoof phone number so the “Called ID” shows up as the bank’s true phone number.
• Prior to calling, the fraudster sends a text regarding a bank fraud alert.
• The fraudster attempts to bolster their credibility by providing names of authorized account users, partial login credentials, or partial Social Security numbers of authorized account users.
• The fraudster requests login credentials and Multi-Factor Authentication (MFA) information.
• The fraudster gains access to the bank account and executes unauthorized wire transfers from escrow and operating accounts.

The following procedures should be followed for prevention and detection:

• Know Who You’re Dealing With, Trust Your Instincts. Do not rely on the “Called ID” on your phone. A banking institution will never call and request login credentials or MFA information. If you receive a call from a bank’s fraud department, hang up and call your institution’s fraud department using a known-safe phone number. It is best to use the number listed on either official bank documentation or the bank’s verified website.
• Create a Rapid Response Plan. In the event of fraud, time is of the essence. Create a response plan customized to your office.
• Contact your insurance carrier as soon as you suspect a problem. Call your insurance carrier(s) and report any suspicion of fraud or cyber-crime.