FBI issues scam alert for San Antonio real estate.
Title companies and Realtors® targeted.
It seems that there’s always a scam floating about and we’re always being warned of potential threats to our wallets, especially when it comes to the internet. This recent scam alert, issued by the FBI, is targeting title companies and Realtors® in the San Antonio area. Typically the scams target the consumer, so this San Antonio real estate scam, stands out from the pack.
The premise is simple, a foreign buyer (typically from Canada or Japan) contacts a local San Antonio Realtor®, interested in purchasing property. After negotiating a contract, the buyer overnights a check to the Realtor® for the earnest money deposit and a large down payment. The checks come from a financial manager for the buyer and are drawn on an investment account. Unfortunately, the check and the account are bogus.
Once the checks are deposited by the title company, the buyer cancels the transaction and demands their funds be returned immediately. The title company wires the funds back to the buyer (who is the scammer), completing the scam.
The scam is also using electronic document signature software to further keep the scammer from the San Antonio Realtor® and title company.
My question is this: why is the title company returning funds that have not yet cleared their escrow accounts? It seems to me that they would be a little more cautious about returning money to someone when the checks have not even cleared. In addition, title companies require certified funds, so this shouldn’t be happening. The FBI scam alert does not name title companies that have been affected, but I will be checking into that with some friends in the title industry.
photo courtesy of B*2
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Comments
Most title companies would never refund the money ESPECIALLY in a transaction that crosses international borders.
Just my .05 cents worth….
Pat – That’s what I would think, but someone in San Antonio got hit by it. I want to know who.
I agree though, it seems like common sense (and good business practice) for a title company.
Pat,
This exact scam is also happening in the Charleston SC area right now. I personally was emailed from the guy in Japan who goes by TAKEUCHI KEIGO and have spoken to his finance guy in Canada WALTER D. ATKINS. They have signed the contract and have sent the Earnest money. We need to let as many people know about this as possible.
Dave – I was wondering if any other places were experiencing this scam. Thanks for letting me know. Hopefully, the FBI will catch these people quickly. Feel free to spread this post around anywhere you can.
These scammers are targeting real estate agents and sellers throughout the US.
I too got “hit” with scam attempt.
I documented my experience with screen caps of cashier’s check as well @ http://www.sarasotahomesforsalenow.com/sarasota-real-estate-scam/
This is NOT just an attempt to steal from a careless closing agent that doesn’t clear funds before refunding.
This is a “phishing” attempt to steal people’s identity.
You’d better believe I’m criticizing Trulia for NOT emailing every member and alerting them to this specific type of scam.
I’ve heard from sellers who incurred cost to move out of their home, expecting to sell. One family spent $6,000 to move out & sign a short term rental agreement.
I’ve heard from 3 title agents (or they claim to be title agents) who claim to have been defrauded by refunding before clearing funds.
Really? Is such a title company in existence today…not clearing funds????
I don’t wish to sound mean. For heaven’s sake, I almost caused a seller to incur costs as well. When you check out what happened to me, you will see that I *thought* the scammer contacting me was a previous “private” Asian client I had worked with (successfully) a few years ago.
BTW, I’d not spoken even one time to this client who bought. All communication occurred through the buyer’s assistant. Buyer never saw the property. I never met the buyer either. It was a “mail” closing. And, no, we didn’t insist on wired funds to open a file and submit an offer. This was a few years ago.
But still….
That experience could have been a scam.
That is why I was a little slow jumping on this one. I *thought* I was hearing from a previous customer.
This one was too close for comfort. In fact, I almost paid for inspections out of my pocket as requested by scammers.
That’s what I did previously, only to be reimbursed later.
Bottom line – it’s now wired funds if you are out of the area and want to open escrow. Sorry for any inconvenience, but the risk is too great.
Best of luck to all of you.
Stay safe & sane in today’s tumultuous market.
Mike
Sarasota Realtor
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