R.I. Association of Realtors warning about scam

PROVIDENCE – The Rhode Island Association of Realtors said a scam artist hacked a real estate agent’s email, resulting in a buyer losing $13,000 after the scammer directed him to wire money for a deposit.
The association said the scammer monitored transaction information in the agent’s email and then sent emails using the agent’s email address to buyers instructing them to wire funds to the broker’s escrow account.
The association said that in one instance, a buyer who received an email asking for a $13,000 deposit emailed the agent to ask why she needed more money. The scammer then emailed she was in closings and would explain later. The buyer wired the money and the scam was discovered only after the buyer lost $13,000, the association said.
Kerry Park, Rhode Island Association of Realtors spokeswoman, said one of the agents at Keller Williams Realty of Newport was targeted in the scam. In another instance, the scammer attempted to obtain $20,000, but was unsuccessful, Park said. She said both incidents occurred on Sept. 29 and that the state police financial fraud unit has been contacted.
Connor Dowd, the principal broker at Keller Williams Realty of Newport, said that in the first incident, the buyer had email correspondence back and forth with the hacker. In the second incident, the buyer called the Realtor immediately, and the scam was discovered.
“As soon as we figured out what was going on, my agent was on the phone with the client and they recalled the wire, but it was too late,” Dowd said.
Dowd said he thinks this is the first time the scam has hit Rhode Island.
“Apparently this has been happening all over the country,” Park said.
Dowd said what is scary about the scam is that it is specific to a real estate transaction in real time. The buyer is under contract and it is very common to have wired funds and money of this amount to be transferred out, Dowd said.
“The hacker was able to speak about the transaction in great detail because of access to previous emails,” he said.
The Realtor email address was changed by one or two letters, but the transaction amounts and other details were the same, Dowd said. Scam emails often have poor grammar and broken English, but Dowd said these did not have that.
Dowd said they are hopeful they will be able to recover the $13,000.
“It’s unfortunate,” Dowd said. “That’s why we’re spreading this message. It’s happening and people need to know about it.”
An alert from the association reads, “Please alert your fellow agents and clients to fraudulent email and wire scam activity now affecting Rhode Island’s real estate community. If this happens in your office, contact the state police to file a formal complaint immediately and alert your local and state Realtor association.”

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