LATEST PHISHING SCAM HITTING REAL ESTATE INVESTORS

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LATEST PHISHING SCAM HITTING REAL ESTATE INVESTORS

Jay HinrichsBusiness Member
Real Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes

We are starting to get a few e mails a day from what appears to be First American title co..  FATCO for short.

that includes escrow instructions and so on.

it comes encryptyed with prompt to open it..

First one I got  I knew I did not have a transaction that anyone with and Las Angeles address would be handling..  so into the waste can it went .. but now I am getting oh 2 to 3 a day in different variations.. 


Be careful out there.. if your a newer investor or have not done many escrows it does look legit and one would open it not knowing any better.

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Jon K.
Rental Property Investor 路 Perry Hall, MD 路 Member since 2016 路 591 posts 路 606 votes
6y

Just wanted to add for newer folks, any time you are expecting wiring instructions from a title company even if the email looks legitimate and appears to come from the proper email address you still need to look up the company's contact info through google (don't rely on the email message to give you the phone number) and CALL THEM to confirm all of the instructions.

I am in IT. It is incredibly easy to fake an email from any email address and other such shenanigans.

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  • Jon K.
    Rental Property Investor 路 Perry Hall, MD 路 Member since 2016 路 591 posts 路 606 votes
    6y

    Just wanted to add for newer folks, any time you are expecting wiring instructions from a title company even if the email looks legitimate and appears to come from the proper email address you still need to look up the company's contact info through google (don't rely on the email message to give you the phone number) and CALL THEM to confirm all of the instructions.

    I am in IT. It is incredibly easy to fake an email from any email address and other such shenanigans.

    24Reply
  • Steve Vaughan
    Rental Property Investor 路 East Wenatchee, WA 路 Member since 2014 路 10k+ posts 路 16k+ votes
    6y
    Originally posted by @Jay Hinrichs:

    We are starting to get a few e mails a day from what appears to be First American title co..  FATCO for short.

    that includes escrow instructions and so on.

    it comes encryptyed with prompt to open it..

    First one I got  I knew I did not have a transaction that anyone with and Las Angeles address would be handling..  so into the waste can it went .. but now I am getting oh 2 to 3 a day in different variations.. 


    Be careful out there.. if your a newer investor or have not done many escrows it does look legit and one would open it not knowing any better.

    Thanks for the warning, Jay.  I am in the middle of 5 transactions with First Am right now.

    Nothing important from them is sent via e-mail.  You must sign in to your secure portal to view, sign, download or upload docs.  Nothing is a direct link in an email.  The secure portal even  is a copy/paste.

    I've also seen an uptick in scam emails 'from' Paypal and Amazon saying I need to verify my acct within 3 days. I've also  received texts 'from'  the USPS or UPS saying they are holding a package from March or April.

    Be careful out there everyone馃憤

    8Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes
    6y
    Originally posted by @Jon K.:

    Just wanted to add for newer folks, any time you are expecting wiring instructions from a title company even if the email looks legitimate and appears to come from the proper email address you still need to look up the company's contact info through google (don't rely on the email message to give you the phone number) and CALL THEM to confirm all of the instructions.

    I am in IT. It is incredibly easy to fake an email from any email address and other such shenanigans.

    YUP  Always call.. I also google earth it and see a land mark by the company since most of my closings are places I have never been.

    and will ask the person on the phone  HEY is that a KFC  over on the corner  ( when i know its a burger king LOL)  and they say no its a burger king I know kind of funky right.. 

    We were got hit was one of our vendors who was expecting us to send them a draw.. we get an e mail from her.. and she says OH I changed my bank account please send the next draw to this new account..  Well we called her and sure enough  bad person hacked her e mail read our correspondence waiting for the right time and boom.. now granted it was only 15k  but there are many instances were folks lost their entire life savings or proceeds from a home sale not verifying wire instructions.

    title co went to wired funds when there was massive Cashiers check fraud going on..  I suspect it could go back to the old days of personal check and wait for it to clear  ..  but then again title and escrow would have to send out docs 2 weeks in advance like the old days.. its only been in the last 2 decades or so.. that title and escrow docs now get to you right before close/ settlement.. 

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  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes
    6y
    Originally posted by @Steve Vaughan:
    Originally posted by @Jay Hinrichs:

    We are starting to get a few e mails a day from what appears to be First American title co..  FATCO for short.

    that includes escrow instructions and so on.

    it comes encryptyed with prompt to open it..

    First one I got  I knew I did not have a transaction that anyone with and Las Angeles address would be handling..  so into the waste can it went .. but now I am getting oh 2 to 3 a day in different variations.. 


    Be careful out there.. if your a newer investor or have not done many escrows it does look legit and one would open it not knowing any better.

    Thanks for the warning, Jay.  I am in the middle of 5 transactions with First Am right now.

    Nothing important from them is sent via e-mail.  You must sign in to your secure portal to view, sign, download or upload docs.  Nothing is a direct link in an email.  The secure portal even  is a copy/paste.

    I've also seen an uptick in scam emails 'from' Paypal and Amazon saying I need to verify my acct within 3 days. I've also  received texts 'from'  the USPS or UPS saying they are holding a package from March or April.

    Be careful out there everyone馃憤

    I used to push back on the encrypted stuff from my bank and from escrow.. but not anymore I conform when needed.. Good luck on your big exchange.. !!!

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    2Reply
  • Cheryl Moore
    New to Real Estate 路 Dayton, OH 路 Member since 2020 路 122 posts 路 39 votes
    6y

    @Jay Hinrichs Thank you for the warning

    0Reply
  • Cheryl Moore
    New to Real Estate 路 Dayton, OH 路 Member since 2020 路 122 posts 路 39 votes
    6y

    @Jon K. Thank you for the information

    0Reply
  • Steve Morris
    Real Estate Broker 路 Portland, OR 路 Member since 2019 路 4k+ posts 路 2k+ votes
    6y

    Usually if you hover over the sender's eMail it isn't legitimate.

    However, scams abound.  One guy got a buyer to send him his down payment by saying he worked for the title company.  Took one phone call and a fake-o eMail.

    Unfortunately, trust no one.

    1Reply
  • Robert Cooper
    Rental Property Investor 路 CA 路 Member since 2020 路 1 post 路 0 votes
    6y

    @Jay Hinrichs

    Thank you for the Heads up Jay!

    0Reply
  • Elisa Eesley
    Realtor 路 Twin Cities & Western WI 路 Member since 2020 路 43 posts 路 16 votes
    6y

    Thanks for the heads up on these scams.

    0Reply
  • Jimmy Hodges
    Investor 路 Mesa, AZ 路 Member since 2018 路 28 posts 路 17 votes
    6y

    I also work in IT and wanted to add that many of the attacks that are successful come from spear phishing which is a targeted attack directly at an individual. These usually come from an account being compromised and the threat actor using the compromised user's email account to send targeted messages to all that person's contacts. The threat actor creates rules in the person's email account to hide all correspondence between them and the target. To the target the email is legitimately coming from a known and trusted person but unfortunately that person does not know their account has been compromised. The sophistication of cyber criminals has increased tenfold over the last several years so you have to be suspicious of everything. Even if you are in the middle of a transaction and something changes voice verify. This goes not only for real estate but for every aspect of your life that evolves the use of technology. Live by the adage "Trust but Verify".   

    8Reply
  • Bonnie LowPro Member
    Lender 路 Asheville, NC 路 Member since 2016 路 1k+ posts 路 1k+ votes
    6y

    UGH. We're in the middle of 2 escrows so it wouldn't have crossed my mind that it could be anything other than legit because sometimes the lender you're working with has a 3rd party that sends out the docusign information. I'm going to check a LOT closer from now on. Thank you for the heads up on this @Jay Hinrichs

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    2Reply
  • Whitney HuttenPro Member
    Investor 路 Boulder, CO 路 Member since 2016 路 1k+ posts 路 1k+ votes
    6y

    @Jay Hinrichs always great advice!  The calls and emails I'm getting right now are "from the SBA" for the EIDL loans I "applied" for stating that I have to redo the banking paperwork and wire back the monies so it can be done correctly.  After talking to the SBA... they don't do that.  

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  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes
    6y
    Originally posted by @Whitney Hutten:

    @Jay Hinrichs always great advice!  The calls and emails I'm getting right now are "from the SBA" for the EIDL loans I "applied" for stating that I have to redo the banking paperwork and wire back the monies so it can be done correctly.  After talking to the SBA... they don't do that. 

    Just got another set of escrow instructions  this one not from FATCO like the others.. little different look.. just dont open this stuff :(

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  • Bradley Laddusaw
    Lender 路 Oceanside, CA 路 Member since 2014 路 39 posts 路 50 votes
    6y

    Nothing beats a phone call to confirm it was sent.  We started using an encryption service at the end of last year of which also screens emails and attachments for authenticity.  Nothing is 100% full proof but we are able to log into our portal, check the quarantine folder and see if any good emails were caught up.  You would be surprised, or not, the types of emails that make it in there.

    Great post to bring this up as we all get busy and it is easy to get lost in the craziness that is "fast paced real estate."

    1Reply
  • Zachary Ray
    Investor 路 Durham 路 Member since 2017 路 589 posts 路 251 votes
    6y

    I appreciate the advice from everyone! Always good to be on the look out for shady scams. 

    1Reply
  • Henry Lazerow
    Real Estate Agent 路 Chicago, IL 路 Member since 2017 路 2k+ posts 路 2k+ votes
    6y

    Thanks for letting us know. You should also report this to the FBI and that title company immediately. 

    1Reply
  • Alan Bernardo
    Member since 2020 路 2 posts 路 1 vote
    6y

    Thank you for the heads up @Jay Hinrichs

    0Reply
  • Adam C Harris
    Investor 路 Eagle River, AK 路 Member since 2020 路 11 posts 路 17 votes
    6y

    A couple simple good rules of thumb for emails is 1) if it looks too good to be true, it probably is, 2) links can be disguised as a different URL then it displays, get in the habit of going directly to the site via your own bookmarked link or typing it manually, 3) it's very easy to change the sender name in emails and can display that it's from someone you trust, confirm it is, and 4) attachments are the enemy, make sure you absolutely trust the person sending before opening. 

    2Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor 路 Sioux Falls, SD 路 Member since 2015 路 9k+ posts 路 18k+ votes
    6y
    Originally posted by @Jon K.:

    Just wanted to add for newer folks, any time you are expecting wiring instructions from a title company even if the email looks legitimate and appears to come from the proper email address you still need to look up the company's contact info through google (don't rely on the email message to give you the phone number) and CALL THEM to confirm all of the instructions.

    I am in IT. It is incredibly easy to fake an email from any email address and other such shenanigans.

     Most of the time these e-mails come from spoof looking addresses, but not the same URL as the actual company. If click reply and look closely at the address, it is often something strange, or a G-mail. It is pretty hard to spoof the @XYZ.com portion of an address. But they may have something that looks close to trick you like @XYZloans.com. 

    Any phishing scams should be reported by forwarding the e-mail to the Federal Trade Commission at [email protected] and they will take action.

    2Reply
  • Mary M.
    Rental Property Investor 路 Portland OR 路 Member since 2018 路 2k+ posts 路 3k+ votes
    6y

    i use schwab and they always call to confirm details.  And when i am getting or sending wires, i always voice confirm...  

    Another good thing to do is have a second part double check the info you are using is correct - ie that you did not mis speak or type a number.  

    The digital world can be wonderful and also not so wonderful. Trust... but always verify as many ways as you need to feel confident! 

    0Reply
  • Ian WalshBusiness Member
    Lender 路 Philadelphia, PA 路 Member since 2016 路 2k+ posts 路 1k+ votes
    6y

    Good to know

    0Reply
  • Charlie MacPherson
    China, ME 路 Member since 2014 路 3k+ posts 路 4k+ votes
    6y

    I'll add my two cents.  When calling to confirm by voice, be sure to use a phone number that you know is good - NOT a number you found in an email.  That number could be every bit as phony as the email itself.

    I've been hit with multiple attempts, referring to closings in the next few days - which were not scheduled at all.

    These thieves are clever and sophisticated.  The emails look completely genuine.  Account numbers, closing dates, sales amounts, wire amounts and contact names will all look correct.  Email addresses will make VERY minor substitutions lie an i for an l.

    Look for minor misspellings or foreign grammar.  Colour vs color.  Enquire vs inquire.  Phrases like "confirm your details".

    Here's a story where a home buyer lost $150,000: https://www.cnbc.com/2019/10/0...

    This stuff is no joke.  Be vigilant and suspect everyone.

    1Reply
  • Chris MullinaxBusiness Member
    Property Manager 路 Kokomo, IN 路 Member since 2020 路 172 posts 路 44 votes
    6y

    Thanks for the heads up! I will be letting our Sales Agent know, so she can inform our buyers!

    CRM Properties4.9523 Reviews
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    0Reply
  • Klint Ruud
    Investor 路 Nashville, TN 路 Member since 2019 路 92 posts 路 96 votes
    6y

    So many people trying to poach investors. Thanks for the heads up! 

    0Reply
  • Tom Shallcross
    Rental Property Investor 路 Chicago 路 Member since 2018 路 613 posts 路 1k+ votes
    6y

    Thanks for the warning @Jay Hinrichs. I've heard so many horror stories (with no true recourse!) that I'm the paranoid guy who calls the title company twice for every closing - even when they're sending everything encrypted through a portal. 

    In IL we can also do a cashier's check up to 50k. Whenever my funds to close are under 50k, I go that route as I'm just so hesitant to wire.

    1Reply
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