Increasing Risk of Wire Fraud in Real Estate Transactions

On a national level, and with growing prevalence in Omaha, Nebraska, real estate professionals are reporting increased instances of wire fraud scams in real estate transactions. The scams are hitting both residential and commercial real estate transactions, but are becoming especially pernicious in commercial real estate, resulting in millions of dollars wired to the wrong account.

 

The scams, generally, result from an email account or a real estate broker database being hacked, where the scammer learns about the transaction, and then sends last minute fraudulent wire transfer instructions that look real because of the details. Often, the fraudulent instructions will include a middle-man, such as a real estate professional, attorney, or title company receiving the wire instructions and forwarding those instructions to the financial institution. By using the intervening party, the fraudulent instructions look genuine to the financial institution.

 

For all individuals and entities involved in real estate transactions, the safest approach is using secure email services, especially when sending wire instructions. However, if secure email services are not used, warning signs include last minute changes to the wire instruction, erroneous email addresses, or a change to an overseas financial institution. If any of these red flags arise, the wire instructions should be verified with the originating party.

© 2017 Vandenack Weaver LLC
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IRS Warns Taxpayers About Recent Phone Scam

The Internal Revenue Service (“IRS”) recently warned taxpayers that an aggressive phone scam that targets taxpayers, often senior citizens, is making rounds throughout the country and costing taxpayers millions of dollars and their personal information. The callers are con artists who claim to be IRS employees. The caller tells the victim taxpayer that the taxpayer owes money to the IRS and threatens the taxpayer with legal action if he or she refuses to pay. The caller often demands immediate payment with a prepaid debit card, gift card, or wire transfer.

The callers often alter caller IDs to make it look like the IRS is the true caller, know information about their victims, use fake names and IRS identification badge numbers, and leave urgent callback requests. Similarly, callers may tell taxpayers they have a refund due, in an attempt to trick taxpayers into sharing private information.

The IRS reminded taxpayers the IRS will never do any of the following:

• call to demand immediate payment using a specific payment method,
• threaten to immediately bring legal action against a taxpayer who refuses to pay,
• demand that a taxpayer pay taxes without providing the taxpayer the opportunity to question or appeal the amount the IRS claims the taxpayer owes,
• ask for credit or debit card numbers over the phone.

he IRS also reminded taxpayers it will work with private collection agencies for the collection of certain tax debts this year. However, the IRS reported that if a private agency calls, there will not be any threats or immediate payment demands and the call will typically occur only after the agency has mailed the taxpayer a notification about the debt.
The IRS urges taxpayers to protect their personal information at all times and to report scam calls to the IRS, the Federal Trade Commission, or the Treasury Inspector General for Tax Administration.

© 2017 Vandenack Weaver LLC
For more information, Contact Us