This October, the Real Estate Fraud Prevention Coalition is leading efforts to recognize National Cyber Security Awareness Month in America.
Alongside partners in federal, state and local government, the coalition will use this month to elevate public understanding of cybersecurity risks and equip consumers with tools and resources to stay safe online. This year’s theme is “Do Your Part. #BeCyberSmart.”
“Wire fraud is one of the fastest-growing cybercrimes in the U.S., and consumers need to understand the risks that exist within every real estate transaction,” NAR President Vince Malta said in a news release. “As Realtors, we have a critical role to play in educating and protecting both home buyers and sellers, and NAR is exploring every possible opportunity to defend against cybercrimes targeting American citizens.”
The FBI’s Internet Crime Complaint Center received 467,361 complaints in 2019 – an average of nearly 1,300 per day – and recorded more than $3.5 billion in total losses. Additionally, COVID-19 has created new global cybersecurity threats, with the number of registered fraudulent emails and text messages spiking by nearly 700 percent in the early days of the pandemic.
“Cybersecurity is more important than ever,” RESPRO President and Executive Director Ken Trepeta said. “RESPRO and its members will remain vigilant and continue their education and outreach to their agents, employees and customers.”
Diane Tomb, CEO of the American Land Title Association, said the title and settlement industry has improved its digital hygiene and implemented many procedures to combat wire fraud, but more must be done to raise awareness.
“No matter how much money we spend, criminals will continue to target consumers. This is why we must continue to educate people about how they can protect their money when purchasing a home or refinancing a mortgage,” Tomb added.
Various cyber threats pose specific risks to the real estate industry and its customers, including scams in which criminals posing as real estate or title agents send fraudulent emails instructing homebuyers to initiate wire transfers to illegitimate accounts. These scams, which often appear credible because of the specific, personal content contained in the email, have the potential to defraud homebuyers out of tens of thousands of dollars.
“As real estate transactions become increasingly digital, cybercriminals continue to get more and more creative in their efforts. It is important that borrowers and the industry remain vigilant, protect their data, and follow best practices in sharing personal and financial information,” Mortgage Bankers Association President and CEO Bob Broeksmit said.
The Real Estate Fraud Prevention Coalition’s goals include efforts to:
- Raise awareness of wire transfer fraud and educate homebuyers, real estate and mortgage professionals, and policy makers about the urgency of the problem;
- Provide concrete steps that can be taken to prevent the risk of fraud; and
- Identify and empower those who have been victimized to share their stories and advocate for solutions.