Experts are sounding the alarm for anyone involved in real estate transactions following a distressing incident where a Denver couple, just days from closing, lost a significant amount of money. In 2023, Coloradans fell victim to over $57 million in “BEC scams,” or business email compromise, with real estate deals being a primary target, as reported by the FBI.

Drew LeMay shared their experience, stating, “We were really focused on finding a home suitable for raising kids, ensuring we had enough space to start a family.” They were lucky to discover a property that seemed to meet their needs perfectly, leading them to submit an offer and eagerly anticipate the next steps.

This involved scheduling inspections, gathering necessary documents, and exchanging countless emails. 2. A recent incident involving a Denver couple, who lost tens of thousands of dollars just days before closing on their home, has prompted experts to issue warnings to anyone buying or selling real estate. The FBI reported that in 2023, Coloradans suffered losses exceeding $57 million due to “BEC scams,” or business email compromise, with real estate transactions being a significant target. Drew LeMay expressed their hopes, saying, “We were very much focused on finding a home that would accommodate our future family.”

They were fortunate to find a property that seemed to fulfill many of their requirements, leading them to make an offer and look forward to the next steps. This process included scheduling inspections, gathering important documents, and navigating a flurry of emails.

LeMay shared, “My wife and I are both professionals in the healthcare sector, which makes us quite unfamiliar with this process.” Just days before their scheduled closing, they received an unexpected appeal that seemed to involve a dialogue between their lender and First American, their title company. “They forwarded an email that had been copied and pasted into their own thread, including us in the conversation about closing costs,” LeMay explained.

However, they would soon discover that those discussions were actually with a hacker, as the email address was only slightly altered from the legitimate one.

“The growth in this area is undeniable, and one of the significant advancements people have made is in the creation of fraudulent emails, a practice known as ‘BEC,’ as explained by LeMay. Steve Beaty, a computer science professor at Metropolitan State University of Denver, specializes in cybersecurity and highlights the increasing risks associated with real estate transactions.

“Real estate closings are particularly vulnerable due to the substantial amounts of money involved,” Beaty noted. According to experts like Beaty, scammers often initiate their schemes by sending phishing emails to brokers or title companies. Once they gain access to these email accounts, they can exploit the information contained within to deceive buyers and ultimately steal their funds. “I have very little trust in emails. If I need to wire money, I always make a phone call,” Beaty emphasized.

To safeguard yourself against wire fraud, it’s crucial to communicate directly with your realtor or title company, either over the phone or in person.”

In the situation involving the LeMays, they reached out to their financial advisor responsible for facilitating the wire transfer. “She got in touch with Edward Jones and consulted with the senior branch administrator about the correct procedure for sending the wire. She expressed her concerns, saying, ‘I want to ensure I do this correctly, so I’ll forward you the email correspondence,'” LeMay recounted. The transfer received approval.

“However, the following day, we were informed that the wire had not been received,” he explained. Over $30,000 had vanished. “It represents years of hard work and saving, and it will take even more years to recover that amount,” he lamented. Although they managed to scrape together funds from other savings to finalize the purchase of their home, their dreams of starting a family have now been postponed.