Texas homebuyer loses $23,000 in fake account email scam
An email scam in Texas has cost a homebuyer his new house after he sent $23,000 to a fake account purporting to belong to his seller's title company. The executive vice-president of the San Angelo Association of Realtors, Kandi Pool, urged buyers to verify the source of any emails dealing with payment instructions, following reports of scam companies operating in Texas. In the scam, criminals hack into emails sent by title firms and use the details to set up fake accounts, before sending the account information to would-be buyers with requests for payment. The FBI is investigating the case.

Krista Johnson

San Angelo Standard-Times

Homebuyers beware: An email scam this week cost a soon-to-be San Angelo homeowner over $23,000 — and the house they were trying to buy.

“A buyer went to his closing only to find out that his down payment and closing cost funds had not been received by the title company,” said Kandi Pool, executive vice president of the San Angelo Association of Realtors.

“We’ve been seeing this particular situation happen around the country,” Pool wrote in an email, adding that the Texas Association of Realtors has been warning the realtors community about these scams moving into the state.

Title companies generally give buyers instructions on where to wire their money shortly before closing on the property; however, scammers are hacking into the emails of title companies, lenders, buyers and real estate agents. Using the information in those emails, the scammer will then set up a fake email account similar to the title company’s, then send the buyer fraudulent wiring instructions.

“In our local case, the FBI and local authorities have been notified and are working the case, but, there’s no expectation of recovering the funds,” Pool wrote. “So, the loss of closing funds is now affecting not only the buyer, who has lost his savings/funds, but the seller, whose property is now not sold and mostly likely it will have to be put back on the market to wait on another buyer.”

She said that those who have worked on the property, such as the appraiser, surveyor and termite company, might not be able to be paid now either.

“It’s a really sad situation, especially for home owners that get duped,” she said.

To avoid falling victim to these scams, Pool said that buyers should always verify the source of the email by calling the title company or their real estate agent and confirming the wiring instructions are legitimate.