Cybersecurity Awareness Month: Protecting Your Information and Your Real Estate Closing

Buying or selling a home is one of the biggest financial transactions many people will make in their lifetime. From sharing personal information to coordinating closing documents and transferring funds, real estate transactions involve a great deal of sensitive information. Unfortunately, that can make buyers, sellers, real estate professionals, and title companies attractive targets for cybercriminals.

October is Cybersecurity Awareness Month, making it the perfect time to review how you can protect yourself from online scams and fraud. As more of the real estate process takes place electronically, understanding common cyber threats and knowing how to recognize warning signs can help protect your information, your money, and your peace of mind.

At Bosshardt Title, we believe an informed client is a better-protected client. Here are some important cybersecurity tips to keep in mind, especially when buying or selling property in Florida.

What Is Cybersecurity, and Why Does It Matter in Real Estate?

Cybersecurity refers to the steps we take to protect our devices, accounts, personal information, and financial data from unauthorized access and online threats.

In real estate, cybercriminals may attempt to intercept emails, impersonate real estate professionals, steal personal information, or trick buyers into sending closing funds to fraudulent accounts. These schemes can look surprisingly convincing, particularly when scammers use familiar names, copied email signatures, or information about an actual transaction.

One of the most important things you can do is slow down, pay attention to unusual requests, and independently verify important information before taking action.

Wire Fraud: A Serious Risk During Real Estate Closings

Wire fraud is one of the most important cybersecurity risks for anyone involved in a real estate transaction.

A homebuyer may receive an email that appears to come from someone involved in their closing, complete with wiring instructions that look legitimate. In reality, a scammer may have intercepted the conversation or impersonated someone involved in the transaction, providing fraudulent instructions that direct the buyer to send their money to the wrong account.

Because real estate transactions often involve substantial sums of money, a single mistake can have devastating financial consequences.

How Can You Protect Yourself From Wire Fraud?

• Verify wiring instructions by phone. Before sending funds, call your title company using a trusted phone number you already have or one you independently obtain from its official website. Do not rely on the phone number provided in a suspicious email.
• Never assume emailed instructions are legitimate. Even if an email appears to come from someone you know, verify any new or changed wiring instructions independently.
• Be cautious of last-minute changes. Unexpected requests to change bank account details, routing numbers, or payment instructions should always be treated as a warning sign.
• Do not let urgency override caution. Scammers often create a sense of urgency to prevent you from taking time to verify their requests.

Remember: Always independently verify wiring instructions before sending money. A quick phone call can help you avoid a potentially costly mistake.

Watch Out for Phishing Emails and Messages

Phishing is a common scam in which criminals attempt to trick people into clicking malicious links, opening harmful attachments, or sharing personal information. These messages may claim to come from a bank, lender, real estate agent, title company, or another trusted organization.

During a real estate transaction, you may receive numerous emails and documents, making it especially important to stay alert.

Watch for these warning signs:

• Unexpected emails requesting passwords, financial information, or sensitive personal details.
• Messages containing suspicious links or attachments.
• Slight misspellings in email addresses or website names.
• Unexpected changes in payment instructions.
• Messages that pressure you to act immediately or threaten negative consequences if you do not respond.

If something seems suspicious, do not click the link or open the attachment. Instead, contact the person or organization through a verified phone number or a communication method you already trust.

Protect Your Personal Information

Real estate transactions often require the exchange of sensitive documents and personal information. Take care when sending or receiving documents containing financial details, identification, or other private information.

Avoid sending sensitive information through unverified email addresses or unfamiliar links. Confirm that you are communicating with the correct person and using an approved, secure method for sharing documents.

It is also wise to be cautious about what you share on social media. Information about a home purchase, travel plans, or personal details can sometimes be used by scammers to make their messages seem more believable.

When in doubt, ask the professionals involved in your transaction how they prefer to receive sensitive documents securely.

What Should You Do If You Suspect Fraud?

If you believe you have received fraudulent wiring instructions, shared sensitive information with a scammer, or sent money to the wrong account, act immediately.

• Contact your bank immediately if you have initiated a suspicious wire transfer. Request that the transfer be recalled or frozen if possible. Time is critical.
• Notify your title company and real estate professional using verified contact information so they can help address the situation.
• Secure any affected accounts. Change compromised passwords and contact the relevant financial institutions or service providers.
• Report the incident. You can report suspected scams to the Federal Trade Commission at ReportFraud.ftc.gov.

Do not assume that a transfer cannot be stopped simply because it has already been initiated. Contacting your bank immediately gives you the best chance of limiting further losses, although recovery is not guaranteed.

Make Cybersecurity a Year-Round Priority

Cybersecurity Awareness Month is a great reminder that protecting yourself online does not have to be complicated. By recognizing suspicious messages, using strong passwords, enabling multifactor authentication, and verifying financial instructions independently, you can take meaningful steps toward protecting yourself and your family.

At Bosshardt Title, we understand how important it is to protect your investment throughout the closing process. We encourage buyers, sellers, and real estate professionals to stay vigilant, ask questions, and verify important information before sending funds or sharing sensitive documents.

If you have questions about your upcoming closing or need help knowing how to verify information related to your transaction, contact Bosshardt Title. Our team is here to help you navigate the closing process with greater confidence and peace of mind.