Preventing identity theft in real estate is more important than ever, especially for homeowners and homebuyers in the process of making a move. From mortgage applications to online banking, your personal information is constantly at risk. Protecting yourself from real estate identity theft is crucial to safeguarding your financial future and preventing devastating fraud. Here’s what you need to know.
Monitor Your Credit Reports to Prevent Identity Theft in Real Estate
One of the best ways to catch identity theft early is by regularly reviewing your credit report. You can request free reports from AnnualCreditReport.com and check for unauthorized accounts or suspicious activity. If you notice anything unusual, report it immediately to the credit bureaus (Experian, TransUnion, and Equifax).
Freeze or Lock Your Credit to Protect Against Fraud
Placing a credit freeze with all three credit bureaus prevents scammers from opening accounts in your name. A credit lock is a similar option that allows more flexibility. These security measures ensure that even if a thief gets hold of your personal information, they won’t be able to use it to take out loans or open credit cards in your name.
Be Cautious with Online Transactions in Real Estate Deals
Real estate scams often involve cybercriminals intercepting sensitive information through phishing emails or fake websites. Always verify the authenticity of emails requesting personal or financial details, especially when wiring funds. When making online payments, ensure you’re using secure, encrypted websites (look for “https://” in the URL).
Use Strong Passwords and Two-Factor Authentication to Secure Financial Data
Weak passwords are a goldmine for hackers. Use complex passwords with a mix of letters, numbers, and symbols. Consider using a password manager to keep track of them. Enable two-factor authentication (2FA) on financial and real estate-related accounts for an extra layer of security.
Protect Personal Documents Related to Your Home Purchase or Sale
Physical documents like mortgage papers, bank statements, and tax returns contain valuable personal information. Store them in a locked safe at home or in a secure location. When disposing of old documents, use a cross-cut shredder to prevent dumpster-diving thieves from piecing together your details.
Watch Out for Wire Fraud Scams in Real Estate Transactions
Wire fraud is a significant threat in real estate transactions. Scammers impersonate escrow agents or real estate professionals to trick buyers into wiring funds to fraudulent accounts. Always verify wiring instructions by calling your title company or real estate agent directly—never rely on emailed instructions alone.
Set Up Fraud Alerts to Detect Suspicious Activity
If you suspect your personal information has been compromised, set up fraud alerts with the credit bureaus. This ensures lenders take extra precautions before approving new accounts in your name. You can also enroll in identity theft protection services that monitor and alert you to potential fraud.
Secure Your Home Network to Prevent Digital Identity Theft
Hackers can exploit weak home Wi-Fi networks to steal personal data. Protect your network by:
- Changing the default router password
- Enabling WPA3 or WPA2 encryption
- Keeping software and firmware updated
- Avoiding public Wi-Fi for financial transactions
Be Cautious with Social Media to Protect Personal Information
Oversharing personal details online can make you an easy target. Avoid posting sensitive information, like your address, birth date, or travel plans. Scammers often use this information to impersonate you or answer security questions.
Register for Property Fraud Alerts to Secure Your Home Title
In some counties, you can register for property fraud alerts to monitor any suspicious activity related to your home title. Maricopa County, for example, offers a free service that notifies you if documents are recorded under your name. This can help prevent title fraud, where scammers fraudulently transfer property ownership.
As a homeowner or buyer, staying vigilant about identity theft is just as important as securing your home. Taking these proactive steps can protect your financial well-being and prevent costly fraud.
Have questions about protecting yourself during a real estate transaction? Erica Anderson is here to help!
