Wire Fraud Warning

1. How Real Estate Wire Fraud Works

Wire fraud in real estate typically occurs when criminals compromise email accounts of parties involved in a transaction — sellers, buyers, agents, title companies, or attorneys. The criminals then:

1. Monitor email communications to learn transaction details, closing dates, and amounts
2. Impersonate a trusted party (title company, attorney, or agent) by creating similar-looking email addresses
3. Send fraudulent wiring instructions that redirect closing funds to a criminal-controlled bank account
4. Move the funds immediately to overseas accounts, making recovery nearly impossible

These emails often appear legitimate, using correct names, transaction details, and professional formatting. They may arrive with urgent language like "updated wiring instructions" or "last-minute change to the wire."

2. Varden Will Never Send Wiring Instructions

Varden does not handle earnest money, closing funds, sale proceeds, or any other financial transfers related to home sale transactions. All fund transfers occur outside of the Varden platform through your chosen title company, escrow agent, or closing attorney.

If you receive wiring instructions that appear to come from Varden, do NOT send any money. Report the communication to us immediately at security@vardenhomes.com.

3. How to Protect Yourself

3.1 Verify Wiring Instructions by Phone

• Always call to verify wiring instructions before sending any money
• Use a phone number you have independently verified — from a business card, website, or prior correspondence — not a number provided in the email containing wiring instructions
• Verbally confirm the bank name, routing number, account number, and amount
• If anyone pressures you to skip verification, treat it as a red flag

3.2 Be Suspicious of Changes

• Last-minute changes to wiring instructions are almost always fraud
• Be wary of any email requesting you to "update" or "change" wiring information
• Legitimate title companies and attorneys rarely change wiring instructions after providing them

3.3 Secure Your Email

• Use strong, unique passwords for email accounts involved in real estate transactions
• Enable two-factor authentication (2FA) on all email accounts
• Be cautious of phishing emails that try to steal your login credentials
• Do not use public WiFi for transaction-related communications

3.4 Verify Email Addresses Carefully

• Check the sender's full email address, not just the display name
• Look for subtle misspellings: @titiecompany.com vs @titlecompany.com
• Be aware that criminals can create email addresses that look nearly identical to legitimate ones

4. What to Do If You Suspect Wire Fraud

If you believe you have been targeted by wire fraud or have sent funds to a fraudulent account:

Act Immediately — Every Minute Counts

1. Contact your bank immediately — Request a wire recall. Banks can sometimes recover funds if notified within 24-72 hours. Call your bank's fraud hotline, do not wait for business hours.
2. Contact the receiving bank — If you know which bank received the wire, call them to request a freeze on the account.
3. File a complaint with the FBI's Internet Crime Complaint Center (IC3) at ic3.gov. Include all transaction details, email correspondence, and wire transfer receipts.
4. File a local police report — This creates an official record and may be needed for insurance claims.
5. Notify your title company or closing attorney — They may be able to assist with recovery efforts.
6. Report to Varden — Email security@vardenhomes.com with details so we can investigate and protect other users.

5. Red Flags to Watch For

• Emails with slightly different sender addresses than expected
• Urgent requests to wire funds immediately
• "Updated" or "changed" wiring instructions sent close to closing
• Requests to wire to a personal account instead of a business account
• Instructions to keep the wire transfer confidential
• Pressure to complete the transfer before verifying
• Wiring instructions sent in a PDF attachment (legitimate title companies often use secure portals)
• Instructions to use cryptocurrency or gift cards for any part of the transaction

6. Varden's Security Measures

To help protect our users from wire fraud, Varden:

• Does not store, transmit, or display wiring instructions on our platform
• Does not handle, hold, or transfer any transaction funds
• Uses encrypted messaging for all buyer-seller communications
• Verifies user identities through our verification process
• Monitors for suspicious activity and phishing attempts
• Provides this wire fraud education to all users involved in home sale transactions

7. Limitation of Liability

Varden is not responsible for losses resulting from wire fraud, including but not limited to losses from fraudulent wiring instructions sent by third parties, compromised email accounts, or social engineering attacks. Users are solely responsible for verifying all wiring instructions and taking appropriate security precautions before transferring funds.

8. Additional Resources

• FBI Internet Crime Complaint Center: ic3.gov
• Federal Trade Commission: consumer.ftc.gov
• Consumer Financial Protection Bureau: consumerfinance.gov

9. Contact Us

To report suspected wire fraud or security concerns: