RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Recognizing the Risks of Fraud to Boost Mitigation Efforts

Home Agents
By Liz Dominguez
June 13, 2019
Reading Time: 3 mins read
Recognizing the Risks of Fraud to Boost Mitigation Efforts

Shield with lock on digital display. Network security concept

Today, risk is everywhere in real estate. From wire fraud to commission fraud, the challenges continue to increase; however, so do the ways in which these risks can be mitigated. At the Risk Management Issues Committee: Legal Hot Topics session, held during the REALTORS® Legislative Meetings & Trade Expo on May 15, these topics were discussed, among others risk-related obstacles the audience brought to light.

The biggest unresolved challenge? Wire fraud.

“We’ve been talking about wire fraud for at least five years now,” said Katie Johnson, general counsel and chief member experience officer for the National Association of REALTORS® (NAR). “We as an industry have been trying to educate consumers about the real risks and to provide them with information about avoiding that risk, but the problem has gotten worse.”

Wire fraud continues to be a prominent challenge in the industry, indicated by the show of hands in the audience of those who have personally experienced it in a real estate transaction.

So, what can industry professionals do to lessen the instances of wire fraud? According to Johnson, it all begins with the consumer.

“Through our efforts with the FBI and other associations in real estate, we understand that consumer awareness is the No. 1 most effective key to avoiding wire fraud,” said Johnson.

Here are a few simple steps brokers and agents can take to protect against fraud:

  • Tell consumers to be on guard from the outset to any emails they receive.
  • Ask practitioners to avoid sending wire instructions via email.
  • Tell consumers to confirm the validity of any wire instructions they have received by calling the practitioners before sending any money.
  • Ensure agents have a secure transaction management platform .
  • Avoid Friday closings, as those perpetrating the fraud would have two additional days at their disposal over a weekend.

If fraud is suspected or has been confirmed, vulnerable parties should:

  • Immediately contact their financial institution
  • Contact their local FBI office
  • Report all instances of fraud to the clearinghouse IC3

For consumers and real estate professionals alike, NAR provides the following resources regarding fraud protection and prevention:

  • A wire fraud email notice template
  • A How to Avoid Wire Fraud video
  • FBI, BEC: The 12 Billion Dollar Scam
  • Local FBI offices
  • A Cyber and Fidelity Insurance Report
  • Information on how to create a data security program for a brokerage

In order to combat fraud, the FBI and NAR have partnered with several trade associations, forming a work group among the real estate, title, mortgage and baking industries to inform consumers of the dangers of fraud and how to protect against them.

“The group has decided that if all the factions involved in the real estate transactions agree to the language that will be provided to consumers—so that when they go to their real estate professional or their title and mortgage professionals they are given the same exact message—it will emphasize the importance of it and let it soak in,” said Johnson.

“We have to be savvy for all instructions for payoff,” she added.

Liz Dominguez is RISMedia’s associate content editor. Email her your real estate news ideas at ldominguez@rismedia.com.

Tags: Cyber CrimeNARNAR MidyearReal Estate BrokerageRisk MitigationWire Fraud
ShareTweetShare

Liz Dominguez

Related Posts

Compass to Share Its Private Exclusives With Rivals, on Two Conditions
Agents

Compass to Share Its Private Exclusives With Rivals, on Two Conditions

July 11, 2025
Compass
Agents

Compass Expands in Colorado with Affiliation of PorchLight Real Estate Group

July 11, 2025
NAHB Awards Program Now Accepting Applications
Industry News

NAHB Awards Program Now Accepting Applications

July 11, 2025
PAVE
Industry News

HUD, OMB Eliminate Core Policies From Biden-Era Home Appraisal Task Force

July 11, 2025
media
Agents

Rich Media Isn’t a Luxury. It’s Your New Standard.

July 11, 2025
Affordability
Industry News

Housing Affordability Melts as Market Heats Up for Summer

July 11, 2025
Please login to join discussion
Tip of the Day

More Face Time: 3 Ways to Boost Engagement With Selfie-Style Content

In the age of TikTok, hyper-polished, overly-produced videos are a thing of the past. Today's most effective social media content is simple, scrappy and all you need is your phone. Read more.

Business Tip of the Day provided by

Recent Posts

  • Compass to Share Its Private Exclusives With Rivals, on Two Conditions
  • Compass Expands in Colorado with Affiliation of PorchLight Real Estate Group
  • NAHB Awards Program Now Accepting Applications

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2025 Newsmakers
    • 2024 Newsmakers
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2025 Power Broker
    • 2024 Power Broker
    • 2023 Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X