Rana Robillard, after a yearlong search, was thrilled to secure a home in Orinda, California. In late January, her mortgage broker emailed instructions to wire a $398,359.58 down payment to a JPMorgan Chase account. Without delay, she sent the money, believing it was a response to her query about the final steps before closing.
The next day, a duplicate payment request alerted Robillard to a scam that had hijacked her life savings. Instead of paying the title company, she had wired her funds to criminals. “That’s when I went into a full panic,” Robillard, a tech veteran, recalled.
Cybercriminals had penetrated the email systems of her mortgage broker, lying in wait for the perfect moment to strike with a fake email. Real estate transactions, with large sums and frequent wire transfers, have become prime targets for such fraud, which can move funds quickly and irreversibly.
Fraud in real estate deals has surged, with losses rising from under $9 million in 2015 to $446.1 million in 2022. Criminals swiftly move stolen funds through multiple accounts, often converting them to crypto or laundering them through mules, making recovery difficult.
Robillard’s money moved from JPMorgan Chase to Citigroup and Ally Bank. She alerted her bank, Charles Schwab, immediately. Days later, the FBI cyber branch informed her that the funds were frozen. Yet, months passed with little progress, leading Robillard to advocate tirelessly for her case, contacting officials, agencies, and even LinkedIn connections from Chase.
By early July, Robillard remained unsure if she’d ever recover her money. Her dream home had been relisted, and she decided to share her story to raise awareness about real estate wire fraud.
Robillard admitted she could have been more cautious, such as verifying wire instructions directly with the title company. She also believes improvements are needed from all parties involved: real estate agents, banks, and mortgage brokers. A single email from a cybercriminal, indistinguishable from legitimate ones, led to the scam.
After persistent efforts and media involvement, Robillard received a $150,000 wire from Chase and nearly $250,000 from Citi, recovering her entire down payment. Despite her ordeal, she warns that the industry must brace for more sophisticated cyber threats, driven by advancements in artificial intelligence.
“The banks and real estate companies weren’t even prepared for the old world, how are they going to handle the new one?” Robillard said. “Nobody’s ready for what’s coming.”
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