Man loses nearly $100K in home down payment wire transfer scam

DENVER (KDVR) — Americans have lost $311 million to wire transfer scams, according to the Federal Trade Commission, and those looking to buy their dream home are common targets.

One homeowner told FOX31 that he and his wife saved nearly $100,000 for a down payment on their new home, but it only took a matter of seconds for scammers to steal all of it.

“This is people’s livelihood that you’re messing with, people spend their whole lives saving to be able to afford a house,” he said.

Like other victims across the nation, the couple received a realistic-looking email from the bank requesting the wire transfer to complete their home purchase. It even included accurate account information. The homeowner suspects his emails were hacked.

“Some of that stuff was happening outside of, you know, an encrypted system, so they were able to get into emails,” he said.

Once the money was transferred to the scammers, it was gone and could not be recovered.

The FBI received more than 2,000 wire fraud complaints per day in 2023, a 10% increase over the year before.

Real estate consultant Grant Muller of Compass Real Estate said the swift development of faster and easier ways to complete home sales has presented some challenges for buyers.

“Technology is an incredible way to save time. We no longer have to run across town with paper checks, but at the same time, we need to understand what the weaknesses are,” Muller said.

How homebuyers can avoid getting scammed

Muller has a firm policy when it comes to down payments sent through wire transfers.

“Do not send any money unless you’ve heard from me or had a conversation with me,” he said.

Muller said clients should be educated about wire fraud as part of the home purchase process.

“We send out wire fraud disclosures and wire fraud warnings in our emails, so we’re trying to cover all of the bases,” he said.

Muller advises all homeowners to investigate security options at banks and title companies.

“Great title companies will have secured the online portals and they’ll use those portals for secure confirmations, secure communications, and that often adds another layer of protection,” he said.

The FTC advises homebuyers to talk to the intended recipient of any funds being transferred before completing a transfer, including while using Zelle and other payment transfer services.

Always look up the bank’s phone number for yourself. Scam emails requesting a money transfer can include a phone number to call, which is fake and will only lead victims to yet another scammer who will answer the phone and pose as a legitimate bank employee.

Report all scams to the FBI and Colorado Attorney General’s Office.