Playing Three-card Monte with Wires Will Ruin Your Day

Some scams never go away, and lately an “oldie but not-so-goodie” has reared its head once again.

This scheme isn’t just an email scheme, it can come by phone or even face to face, so the key is to listen for certain key words and phrases that serve as warning signs.

The pattern usually starts with contact from someone who is allegedly a lender, requesting that a significant amount of money be held in escrow related to a possible purchase.

The scammer states that certain “pre-closing disbursements” will have to be made. That is the key phrase to listen for, “pre-closing disbursements.” When you hear that, the red light above your desk should start flashing, and the storm shutters should start to close around your office.

What the scammer wants to take place is for the deposit wire to be accepted and subsequent “pre-closing disbursements” to be made. Once that is done, the initial wire would be recalled and then … whoever held the escrow account agent would be left liable for the amount of those “pre-closing disbursements.”

In all transactions, but especially ones that seem to have non-standard money transfers involved, make sure you independently verify the identities of any parties from whom you accept funds and/or instructions for disbursements. Be especially mindful when instructions are changed during the course of transactions, and/or when international wires are involved.

Again, any requests for pre-closing disbursements should be met with great caution and if made should be taken as a sign to double check all the contact information you have.

When in doubt, give us a call.

For a PDF of this title tip, click here.