Redstone Federal Credit Union

r e d f c u.o r g | 3 Redstone Federal Credit Union does not warrant, guarantee or insure any service offered by Redstone Title Services LLC. RFCU and Redstone Title Services are affiliated but are separate entities. FRAUD WIRE WIRE HOW TO PROTECT YOURSELF Homebuyers should beware of wire fraud schemes involving your home purchase as they are becoming more prevalent. If successful, these crimes can be devastating and could cost a homeowner their down payment. Todd Howard, president of Redstone Title Services, explains that the scheme begins weeks and months before the actual fraud occurs. Mortgage wire fraud Similar to other types of email phishing, mortgage wire fraud involves a person hacking into a title, mortgage or real estate company's email account, then using this information to send a fraudulent email to a client – the homebuyer. e email provides the homebuyer instructions (or sometimes a revision to instructions) on where to wire the down payment just before the loan closes. Unfortunately, the account information belongs to the criminal and is typically located overseas, making recovery of the funds extremely difficult. "e overseas account is a definite red flag because United States real estate transactions should almost never involve foreign banks or accounts," says Howard. Because these wire fraud emails look legitimate, it can be difficult to spot them. However, knowing this type of fraud exists should cause you to stop and think before wiring your down payment. Protect yourself with these tips: • Call your title company or whoever you are wiring the money to, using a phone number you have previously used (not the one in the email) to confirm transfer instructions. You may also want to go to their website and use the number listed there. • Ask your financial institution not to allow any wire transfers from your account without a voice verification or other interaction with you. • If you aren't sure if the email is legitimate, do not click on any links or attachments in it because this could place malware on your computer. • Be suspicious of emails that request immediate action. • If you think fraud has happened to you, act immediately. Contact your financial institution and request that it contact the corresponding financial institution where the fraudulent transfer was sent. Check the safety and security procedures of the mortgage or title agent you use. "Redstone Title Services has a multipronged system in place to protect consumers," says Howard. Your home purchase should bring you joy for years to come. Protect yourself against wire fraud and it can.

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