Victim of Wire Fraud: How Fraud Recovery Services Saved a $297,778 Loss

Fighting fraud is like walking on a tightrope. You must observe every step. It’s a game of margins, where a single slip can be catastrophic. 

But even with a keen eye, this can be difficult to spot — especially during a real estate transaction. With up to nine different parties involved, plus the emotional stress of moving, tracking the subtleties of an email is often the last thing on your list.

Unfortunately, fraudsters know this and know how to strike when you’re most vulnerable. They prey on the chaos and insert themselves into the transaction when you least expect it. It’s often not until after you wire funds that you realize your mistake.

Our Fraud Recovery Services recently helped a buyer, Luana, who fell victim to wire fraud in such a way. Her story serves as a warning sign for everyone about the narrow path we must navigate to avoid fraud. 

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Laying the trap

Luana's encounter with fraud starts toward the end of the closing process for her new home in Utah. They received an email, purportedly, from their title company. It stated a sudden policy shift: cashier checks were no longer accepted, and they needed to make a wire transfer to complete the closing process. The email came from a trusted source using the same address they’d been communicating with previously.

She was frustrated, having already planned to mail a cashier check later that day. This meant adding additional steps to their already stressful closing process. The couple pressed the title agent and, unexpectedly, was met with a quick response from their real estate agent, who confirmed the new instructions.

Trusting the authenticity of the communication, her husband headed to the bank to send the wire transfer, unknowingly stepping into a well-laid trap. A routine warning about wire fraud caught the husband's attention just as they initiated the staggering $297,788 wire transfer. Alarmed, he dialed the number in the email, only to discover the harsh truth—it was a business email compromise scam. 

The couple realized that the fraudster had disguised himself, using sophisticated social engineering, as both the title agent and the real estate agent. In a frantic attempt to halt the transaction, he learned it was too late; the funds had already been dispatched. The money was gone.

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The recovery process begins

What followed was a maddening carousel of bureaucracy. A long-standing customer of their bank, Luana found herself entangled in an endless loop of calls. To her dismay, she was even mistakenly informed that their case did not constitute fraud.

She looked for outside help, and discovered CertifID Fraud Recovery Services late on a Sunday afternoon. She reached out in a mix of hope and desperation. To her surprise, they received a response within hours.

It turned out to be the support she desperately needed. Working with our partners in federal law enforcement, CertifID helped her navigate the complex process. In the days following, she and her husband finally received the return of their funds in full. Luckily the prior owner of the property had agreed to delay the closing, and with funds back in their bank account, the couple finally closed on their new home.

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Fraud prevention starts with you

Cybercriminals will do everything they can to exploit the trust and routine procedures of wire transfers. Your role — as the title agent, real estate agent, buyer, seller, or any related party to the transaction — is to stay vigilant and informed about the dangers of wire fraud. Education exposes the tactics of fraudsters and creates a better defense throughout the transaction.

Remember: the outcomes of wire fraud often depend on quick, effective action. If you ever fall victim to wire fraud, contact our Fraud Recovery Services team and follow these immediate next steps to begin recovery. Our team is standing by to support you.

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