Location: Missouri
My father was closing on a home purchase. Unbeknownst to us, the title company’s email system appears to have been compromised. A fraudster inserted themselves as a “man in the middle”.
**•** The fraudster emailed the title agent while posing as my father.
**•** The fraudster emailed my father while posing as the title agent.
**•** The real title agent was corresponding back and forth with the fraudster (not realizing it), and in those emails shared the closing statement, closing amount, and wiring details.
**•** The fraudster then forwarded/relayed those wiring instructions to my father, who wired \~$250,000 on Friday afternoon.
**•** On Monday at the actual closing, the fraud was discovered. The title company was confused too and realize they were corresponding with the fraudster. There was a couple valid emails between both parties, but the fraudster and title agent communicated back and forth at least 5 emails
•. After my father sent the wire on Friday, the realtor emailed the actually title agent to be on the look out. He never responded and we later found out her instructed the fraudster (thinking he was my father) to bring a check. You would have thought he would question why a wire was being sent.
We are working with the police, FBI and banks to see if we can recover the money. Fully expecting them to not and we will need to take legal action against the title company. Does it seem like we have a case? I recognize my father also had some negligence but I can’t believe the closing agent was email the fraudster and even sent him the final closing statement. That is what allowed him to make it seem believable.
We don’t know yet whether the title company’s email was hacked directly, or whether somewhere else (real estate agent, etc.) was the point of compromise. We verified my dad’s account had no foreign logins so it doesn’t seem likely to be his. We also don’t know how the fraudster knew my father was buying a home.