Wirings Funds is now Risky Business

Scammers have caught up to the real estate transaction. Most of us are familiar with having our email hacked, or know others who have. This is how the home purchase wire fraud begins, by scammers trolling and hacking individual’s email accounts. Although not new, our company has been warning clients for several years now, it has become more frequent and aggressive. FBI data reports that $969 million was diverted or attempted to be diverted from real estate transactions in 2017, and wired to criminally controlled accounts. That is an increase of almost 6 times from 2016. Typically, a cybercriminal will access an email account of any party to the sale – buyer, seller, Realtor, title company, even attorneys – to collect details about a transaction, then use that information to send bogus instructions that seem reasonable to transfer funds to the wrong account. Once that happens, recovering it is nearly impossible.

A central issue, according to Theft Resource Center in San Diego, is that many people do a poor job of protecting themselves online with weak passwords for their email accounts. If one party to the transaction doesn’t practice “online hygiene”, everyone involved can be at risk. A 2017 Data Breach Investigation found about 80% of hacking last year took advantage of passwords that were stolen or easy to guess. Once the thief obtains a few transaction details, they compose a legitimate-looking email to the purchaser, ostensibly from the title company, to transfer closing funds to the fraudulent account. This can result in the loss of not only thousands, but hundreds of thousands of dollars, since people are inclined to follow instructions that appear legit from a title company they trust.

Making sure the devices you use have the latest patches and secure passwords is a good start to deter cybercriminals, and backing up your data on separate devices is critical. Regarding the sale process, all parties should verify by phone, using a known number – not one in a suspicious email, any instructions of where to send money. This is the most critical, as this fraudulent email typically arrives just days before closing when buyers are busy and often don’t take the time to consider whether an email is real or not. The receiver of the money, usually the title company, will send “wiring instructions” containing the name of the institution, an account number, a routing number and other brief information that you will relay to your bank. They are hesitant to send this by email now, and may send by fax or even text. You can avoid this issue by exchanging funds with a cashiers or certified check, if feasible. As your Realtor in a transaction, I will discuss this situation with you at least once, and even have a document that outlines this potentially hazardous issue. Even though this is generally a buyer beware item, it can affect a seller who is bringing money to closing, or having their sale proceeds sent to their bank electronically.

Practice Safe Wiring!

Is Brass In….or Out?

How much brass is in your home today? And is it the newer – softer finish?….or the 80s – high polish style? I have not seen a groundswell for bringing brass back in St Louis, at least not yet. I’m sure some will say it is all the rage, and others not so much. Keep this in mind: Most of what you tend to see in photos and opinions is not produced locally. And every item, texture and color in the photo was likely coordinated by a professional. I have seen some new brass lighting that looks very good in a shade called winter or brushed gold, which is a muted yellow color, not loud or shiny. It tends to be installed in modern décor, and lightly colored rooms, although it can be mixed with various materials. This look is working its way into lighting, and faucets in the kitchen and baths. I have not seen it reach shower frames or door knobs/hinges yet.

Still king today in STL is antique/ oil rubbed bronze (dark) metals in most of the home’s hardware – doors, bath and kitchen accessories, and lighting. Brushed chrome (soft, not shiny)/ nickel is a solid second. Light fixtures are in flux, as they turned dark first, 15-18 years ago, and the kitchen, baths and door hardware followed. Funny thing about baths, though, is that polished chrome has remained a staple for all bathroom fixtures (except cabinet pulls) for many, many years, and brushed chrome/nickel in the kitchen for the last 20. The only metal that has really been out of style the last 10-15 years was.. .brass. Of course, the brass from way back when, if you have the mass produced fixtures and hardware from the 70s-80s, still is.

If you are considering a change in any of these items, I suggest going with whatever you like on an item that is less costly, like a small light fixture or two, a faucet or two. If you are re-doing everything, you should research it more, to see (1) what you like, (2) what is popular in your part of town (sometimes trends are spotty even around St Louis, like really hot in Chesterfield but not in the city or South County), (3) how it goes with the rest of the room, and (4) what has staying power if you are not selling in the next 3 years. These steps will make you feel more certain about spending thousands vs hundreds. Here is one of the ways I realize whether a style is just a trend or a true mainstay – when clients stop asking if they should use it, and start asking what variation of it to use.

There you have it, brass is in….and out, depending on the style!