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Renters, Passengers and Wire Fraud


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Blog by Doug Ingersoll | February 25th, 2017


Renter Reduction  from Elliott Eisenberg:

Until recently, the combination of a shortage of multifamily units, booming demographic demand from Millennials, and an improving economy meant strong demand for apartments. This resulted in strong rental growth and large increases in supply. But, things are reversing. The largest cohort of Millennials is almost 26, job growth is slowing, years of new supply are saturating the market, and now banks are becoming skittish about lending to multifamily developers.  

 
From Elliott D Pollack and Company Monday Morning Quarterback:

Total air traffic at Sky Harbor International Airport (the number of people who boarded and deplaned) was down in December.  This is a continuation of a recent trend. The cause is a declining presence at American Airlines.  It is the result of American (formerly U.S. Airways) moving flights out of Phoenix to its other hubs.  For 2016, the total emplaned was down 1.5% and the total deplaned was down 1.3%.  Total traffic was down 1.4%.

From Signature Title:

QUESTION: I have heard some horror stories about clients losing thousands of dollars purchasing and leasing properties through wire fraud, is this real?

ANSWER: Yes wire fraud is very real! Signature Title reports that title companies can get up to 900,000 attempts to hack into their email DAILY! The hackers will also get into your email (yes it can happen to you without your knowledge) and follow your email chain with your client. Then they will very slightly change the email address such as changing an i to an I and start an email conversation with your client giving them wire instruction for the funds due to them. This applies to Buyers, Sellers, Tenants and Landlords. They are VERY convincing as they are pro’s at this.

To protect everyone, you need to educate your clients not to wire anything without calling and verifying from the person receiving the wire such as the Escrow Officer. The hackers also will text, so again, make sure they phone verify! Typically when the Title Company sends the wire instructions to the client, it is secure. If they send the information to you and you forward it, it is no longer secure so make sure it comes DIRECTLY from the Title Company.

You also might want to put the following language on your email signature to further try to avert any wire fraud.

IMPORTANT NOTICE: Never trust wiring instructions sent via email. Cyber criminals are hacking email accounts and sending emails with fake wiring instructions. These emails are convincing and sophisticated. Always independently confirm wiring instructions in person or via a telephone call to a trusted and verified phone number. Never wire money without double-checking that the wiring instructions are correct.”