Yahoo Finance I’m a Fraud Prevention Expert: 6 Scams To Avoid During the Summer Homebuying Season
A recent report from AARP revealed that 141.5 million adults in the U.S., or 42%, have been victims of fraud. If your home is on the market for sale or you are buying a new house, you could be at greater risk of scams. Cyber-thieves are using peer-to-peer payment platforms, social media advertising, and high-pressure tactics to convince consumers to part with their hard-earned money.
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“As scammers get more creative in their approach, it is becoming increasingly more important for consumers to actively safeguard their identity and finances,” said Brandon Ashton of Cornerstone Financial Services.
Knowing some of the common tactics scam artists use can help you avoid theft and fraud.
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Social Media Advertising Scams
If you’re buying or selling a home, you might enlist the help of professionals like home cleaners or landscapers to get your property in tip-top shape. But be careful hiring someone you don’t know.
“Scammers can use fake online ads to disguise their scheme. Avoid buying products or services in response to ads that pop up on your social media accounts,” Ashton said.
Darius Kingsley, Head of Consumer Banking Practices at Chase, added, “You’ll try to check out, but the only option is to use a digital payment platform, like Zelle®. When it’s time for the service to begin, they never show up.”
Zelle Scams
In general, Ashton said, you shouldn’t pay people you don’t know through peer-to-peer payment platforms.
“Apps such as Venmo, Zelle and Cash App are often used in scams and, unfortunately, do not offer high levels of fraud protection,” Ashton said. “Be sure you are only using these apps with friends and loved ones.”
He further advised, “Consider using a credit card, especially for online transactions, as this form of payment method tends to offer a higher level of protection against fraud.”
Home Warranty Scams
Buying a new home presents the opportunity to protect your investment with a home warranty. But, as with hiring a service provider, research before signing up for a home warranty service.
Be especially wary of solicitations that come in the mail, people selling door-to-door, or cold calls. “Scammers will use real company names to make it look convincing, but don’t be fooled,” Kingsley warned.
It’s best to seek recommendations from family, friends, or even your Realtor or mortgage broker to ensure you work with a trustworthy company. Don’t respond to phone calls or emails; instead, reach out to the number on the company website.
“If you want to be sure you’re talking to a legitimate representative of the company that contacted you, call the number on their official website,” Kingsley previously told GOBankingRates.
Wire Transfer Scams
When buying a home, you’re prepared to part with a lot of cash – often in one lump sum. However, your mortgage broker or loan officer should be upfront about payment expectations and the safest way to transfer funds. Kingsley said that wire transfers are fast and convenient but can be risky.
“Wire transfers can be a convenient way to send and receive money; but keep in mind they usually cannot be reversed,” he said. “If you are closing on a home, be very cautious and confirm payment instructions directly with your agent or loan officer through a known phone number to verify wire instructions before you send any money.”
Digital Fraud and Hacking
While many scams require the victim’s knowledge and participation, fraud can also occur without the victim realizing it. Bank accounts can be hacked and credit card numbers can be stolen, leading to substantial financial loss.
Fortunately, you can take steps to prevent online credit card and bank fraud. “Be sure you are monitoring your bank accounts and online purchases and report any suspicious activity immediately,” Ashton told GOBankingRates.
AARP recommends keeping your device’s operating software up-to-date and using multi-factor authentication on accounts to protect your personal information. Additionally, the organization advises avoiding signing into public WiFi accounts without using a virtual private network (VPN).
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Gift Card and Crypto Scams
Scams in which a thief reaches out and tries to convince someone to make a payment using gift cards or cryptocurrency are still surprisingly common, although the AARP survey revealed that most U.S. adults are aware of these tactics.
The survey found that roughly 33% of adults put themselves at risk by responding to calls, texts, or connection requests on social media from people they don’t know. If you are in the middle of buying or selling a home, cybercriminals might pinpoint you as a prime target since you probably have a lump sum of money sitting in the bank while you wait for closing day. Although buying a home is exciting, keep this information closely guarded and think before you post on social media.
Most importantly, step back before proceeding with any correspondence or transaction if something feels wrong or suspicious. “Scammers are constantly finding new ways to take advantage of their targets. Stay up-to-date on the latest scams being used so that you are not caught off guard,” Ashton concluded.
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This article originally appeared on GOBankingRates.com: I’m a Fraud Prevention Expert: 6 Scams To Avoid During the Summer Homebuying Season
