Wire fraud has become a very relevant problem in recent years in the real estate sector. Malicious actors are able to exploit non-tech savvy users as well as take advantage of apparently legitimate listings and often go unpunished. According to the ALTA 2021 Wire Fraud Survey, one in every three real estate transactions are targeted for wire fraud. Over $9 billion* has been spent on Business Email Compromise (BEC) fraud since 2016. Real estate wire fraud alone is responsible for 16% of those losses.
Due to their high level of security, blockchain-based solutions make it harder to intercept and manipulate wire instructions in real estate transactions. Furthermore, via smart contracts and escrow it is possible to completely avoid the problem by providing specific triggers for transactions to be executed, as well as notarizing every step of the process and authenticating it with a mix of digital identities and Know your customer procedure (KYC).Close