Question 1

What is wire fraud in Florida real estate?

Accepted Answer

Wire fraud (18 U.S.C. Section 1343): a federal crime involving: the use of wire communications (email, phone, fax, or internet) to: defraud someone of money or property. In FL RE: wire fraud has become: one of the most common crimes targeting real estate closings. The scheme: typically involves a cybercriminal who: hacks into the email of a real estate agent, attorney, or title company, monitors email communications to identify upcoming closings, and sends a fraudulent email to the buyer with: fake wire instructions directing the buyer’s closing funds to the criminal’s account. The loss: is often catastrophic (the buyer loses their entire down payment or purchase price).

Question 2

How can Florida real estate parties protect against wire fraud?

Accepted Answer

Protection: verify wire instructions (always verify wire instructions by: calling the title company or attorney at a known phone number: not a number provided in the email), do not change wire instructions (legitimate closing agents rarely change wire instructions; if you receive: new or changed instructions: call to verify), use encrypted communications (request that the closing agent use: encrypted email or a secure portal for transmitting wire instructions), multi-factor authentication (enable MFA on all email accounts: to prevent hackers from accessing your email), and title company protocols (the title company should: never send wire instructions by email alone, require: verbal confirmation before accepting incoming wires, and use: a secure platform for document exchange).

Question 3

What are the federal penalties for wire fraud in Florida?

Accepted Answer

Federal penalties (18 U.S.C. Section 1343): prison (up to 20 years for each count of wire fraud; if the fraud involves: a financial institution: up to 30 years), fines (up to $250,000 for individuals; up to $500,000 for organizations; if the fraud involves a financial institution: up to $1 million), restitution (the defendant must: pay restitution to the victims for their losses), and asset forfeiture (the government can: seize assets obtained through the fraud). Federal prosecution: the FBI investigates wire fraud; the U.S. Attorney’s Office prosecutes. FL: the State Attorney may also prosecute under FL fraud statutes. Victims: should report immediately to: the FBI’s IC3, the bank (to attempt a wire recall), and local law enforcement.

Wire Fraud Federal Prosecution

Wire Fraud in FL Real Estate

The Scheme

Protection

Penalties

Related Terms

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