In 2023, according to FBI sources, a cybercrime transpired every 28 seconds, amounting to $12.5 billion dollars in losses – an all-time high – with real estate and the title industry still a top target. 

Buyers may be ensnared by phishing attacks, spoofed emails, and agent impersonations, a condition likely to increase in the age of AI and machine learning.  

Sellers may fall victim to open-source records, identity theft or social engineering – and title companies and law firms can be victimized by compromised systems, lender impersonation, or fraudulent payoff instructions.  

According to a 2022 survey by the American Land Title Association, 46% of respondents said their employees receive at least one email a month attempting to change wire or payoff instructions. However, customers continue to remain among the most vulnerable in a given transaction: 

• Nearly one in four receive suspicious communications 

• More than one in 10 becomes a target 

• More than one in 20 become victims 

Despite growing collaboration between government and global agencies, recovery of lost funds is often not possible.  

Real estate and title agents need to make every effort to help mitigate the growing crisis. Staying informed about cybercrime trends empowers us to recognize red flags and implement proactive measures. 

As entrusted advisors, it is more than ever necessary to impart these general and industry-specific protective measures to our clients: 

• Be cautious about opening attachments or downloading files from emails, regardless of who sent them, as such files can contain malware. 

• Do not email your financial information. Cybercriminals are always on the prowl.  

• If you give financial information on the web, make sure the site is secure. Sometimes, a false URL may replace the real one. Instead of clicking on a link in an email, look up the URL and type in the web address yourself. 

• Confirm all wiring instructions in person. It is critically important to confirm by phone with a number/person you know before transferring your closing funds. 

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This material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy. This material is not intended to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice.   

About Bobbi Pronin
Bobbi Pronin is an award-winning writer based in Orange County, Calif. A former news editor with more than 30 years of experience in journalism and corporate communications, she has specialized in real estate topics for over a decade.

Bobbi is not an employee of Anywhere Integrated Services or affiliated with its title companies.