Home Buyer’s Dream Turns Into $200,000 Nightmare

CLAYTON – A Clayton man lost more than $200,000 after receiving fraudulent wiring instructions while purchasing a home in Wake Forest.

The 36-year-old victim was preparing to close on the property when he received an email that appeared to come from the attorney handling the real estate transaction.

The email provided instructions for wiring the money needed for closing.

According to the report, someone had gained access to communications involving the home purchase and created an email address closely resembling the attorney’s legitimate address.

Believing the instructions were authentic, the victim wired $200,851 to an account controlled by the scammers.

The fraud was discovered later when the closing attorney told the buyer the money had never been received.

As of the latest report, the funds had not been recovered.

The case is an example of what law enforcement agencies refer to as business email compromise, a type of fraud that frequently targets real estate transactions involving large wire transfers.

In these cases, scammers may gain access to an email account involved in a closing or create an email address nearly identical to one used by an attorney, lender or title company. The fraudulent message is then sent when the buyer is preparing to transfer closing funds.

Buyers are urged to independently verify wiring instructions before sending money, particularly if instructions are changed by email.

A phone number contained in a suspicious email should not be used for verification. Instead, buyers should contact the attorney, lender or title company using a previously confirmed telephone number.

Anyone who believes a fraudulent wire transfer has been made should immediately contact their financial institution and request that the transfer be recalled. The incident should also be reported to law enforcement and the FBI’s Internet Crime Complaint Center.