Tuesday, May 21, 2019
If you are in the process of buying or selling a home, at some point, you are going to have to disclose personal information when you go through the process. Because of this, a home buyer, especially, is much more likely to become a victim of identity theft.
Hereare some ways to protect your identity when buying or selling a new home:
Ask if Communication isSecure
Onething to do is to make sure your mortgage and real estate professionals areusing secure electronic communications. If they can’t articulate theirsecurity, such as they use two step verification, etc, then they aren’tgenerally secure. Otherwise, you should drop documents off in person.
Ask How Personal Info isHandled
Anotherthing to do is ask your lender how they will handle your personal info afterthe loan is complete. Are documents able to be stored securely? Will they beshredded when no longer needed?
Ask About SecurityPolicies
Youshould also ask about the security policies of your lender and/or real estateprofessional. If they don’t have a security policy, they aren’t secure.
Get a Referral
Askpeople you know for referrals for mortgage and real estate professionals.Verify that their licenses are current. Do business with those who others know,like and trust.
Choose a Real EstateTeam That You Trust
Buyinga new home takes a full team on both the sides of the buyer and the seller. So,you have to make sure that you trust them and that all of their credentials areup to date. You should also do your best to read reviews online.
Be Aware of Frauds
Fraudstersare always out there, and they take advantage of people looking to buy a home.For example, according to investigators, a California woman would offer to buy ahome on behalf of the buyer because the buyer was under funded or an illegalimmigrant. After the buyer provided the deposit, she would never be heard fromagain.So keep your eyes open as you go through the process.
Recognize Money WireScams
Whenlooking at the home buying process, a report by the FBI’s Internet CrimeComplaint Center said email fraud involving real estate transactions rose 1,110percent in the years2015 to 2017 and fraud dollars lost rose almost 2,200 percent.
Nearly10,000 people reported being victims of this kind of fraud inWhen looking at the home buying process, a report by the FBI’s Internet CrimeComplaint Center said email fraud involving real estate transactions rose 1,110percent in the years 2015 to 2017 and fraud dollars lost rose almost 2,200percent.
Nearly10,000 people reported being victims of this kind of fraud in 2017 with lossesover $56 million, the FBI report said. Real estate is only now tightening itsbelt and fighting back., the FBI report said. Real estate is only nowtightening its belt and fighting back. The moment a wire transfer is requestedvia email, tell your agent or broker you want to meet them at the office todiscuss. End of story.
Be Cautious on theInternet
Duringthis process, you will be filling out a lot of forms and giving out a lot ofyour personal information. So, to help prevent any identity theft, you shouldonly use a secure device on a secure network. You also have to make sure thatyou are using strong, varied passwords, and if you have to print out copies ofdocuments, you should hide any account numbers or Social Security numbers.
Use Credit Monitoring orID Theft Protection
Whenmaking a large purchase like a new home, you should make sure to have real timecredit monitoring and identity theft protection.
Freeze or Lock YourCredit Until Making an Offer
Youalso might want to consider freezing or locking your credit until you arerequired to have your credit checked. Both options prevent a creditor fromaccessing your credit report, which stops a criminal from opening a newaccount.
Creditlocks are available from consumer credit bureaus for a small fee, and you canlock or unlock your credit whenever you want. A credit freeze is free but slightlycumbersome. Go free and learn it.
Get a Copy of YourCredit Report
It’salso a good idea to get a credit report if you are going to finance a home.Checking this report will give you a good idea of what you can afford eachmonth, and it will allow you to see if there are any mistakes or unusualbehavior on the reports.
Stay Safe During the Closing Process Finally, remember that fraudsters are always out there, especially when people are using large sums of money. The Federal Trade Commission estimates that people lost about $1.48 billion to fraud last year, alone. So, it’s imperative that you keep yourself safe by avoiding things like phishing schemes, and if something sounds too good to be true, it probably is.
Robert Siciliano personal security and identity theft expert and speaker is the author of Identity Theft Privacy: Security Protection and Fraud Prevention: Your Guide to Protecting Yourself from Identity Theft and Computer Fraud. See him knock’em dead in this Security Awareness Training video.