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\nAll that was left was the last wire transfer – $272,000.<\/p>\n
The next day, they were bankrupt.<\/p>\n
Too good to be true<\/h2>\n
Like many older adults, the Butchers entered the real estate market with family in mind. They wanted to live closer to their son, and to have a place big enough for grandchildren to enjoy.<\/p>\n
\u201cWe were truly excited, when through negotiations, we won the bid,\u201d Candace Butcher said. \u201cThrough the entire process, I kept saying, \u2018I can\u2019t believe this is going to be our house.\u201d<\/p>\n
All it took to rob them was a simple confluence: wire fraud and poor security precautions. The email that provided the Butchers with wire transfer details was sent from the proper domains for the Butchers\u2019 pay agreement, under the proper names.<\/p>\n
The only problem, according to the complaint and the Butchers\u2019 attorney, was that those domains had been hacked.<\/p>\n
Someone had gotten inside Land Title Guarantee Co. and Envoy Mortgage and used their contact information to obtain a fraudulent wire transfer.<\/p><\/blockquote>\n
The secret behind the hack<\/h2>\n
It\u2019s a frighteningly simple trick: all it takes is the password to the right email account. The exact dollar amount had yet to be specified, and the Butchers had no reason to think an email from their mortgage company would be anything but legitimate. They\u2019re currently suing both companies for insufficient security.<\/p>\n
They\u2019re also suing Wells Fargo, the bank handling the transfer. According to the complaint, Wells Fargo failed to acknowledge the fraud and neglected to make recourse available, including a 72-hour freeze that would have saved the couple\u2019s savings.<\/p>\n
Instead, while the problem is being resolved, the Butchers are living in their son\u2019s basement.<\/p><\/blockquote>\n
The details of the whole sad saga can be found here<\/a>, but the takeaway is simple: security is everything. Everyone cares about housing. Not everyone is an expert in data security. The real estate industry has a moral and professional responsibility to guarantee secure transactions.<\/p>\n
Better safe than sorry<\/h2>\n
Real estate customers can avoid tragedies likes the Butchers\u2019 by taking precautions on their end.<\/p>\n