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How Real Estate Fraud is Robbing Homebuyers Blind

by Eric Seyboldt, MBA

The American Dream of homeownership is under attack. What should be a moment of triumph—buying a home—has become a high-risk financial trap, with criminals lurking behind emails and transaction portals, waiting for a single lapse in vigilance. This isn’t just an inconvenience. This is a national financial crisis, siphoning away life savings in seconds.

The 2024 State of Wire Fraud report by CertifID lays out the brutal reality: 1 in 20 Americans who have bought or sold a home in the past three years have been victims of real estate fraud. The median loss? More than $70,000—money meant for down payments, meant for securing a future, meant to be safe. And yet, it vanishes in an instant, funneled into fraudulent accounts, often unrecoverable.

The fraudsters aren’t amateurs. They are skilled, strategic, and relentless. They have turned real estate transactions into a hunting ground, exploiting blind trust and gaps in security.

The Invisible Enemy in Every Real Estate Deal

Cybercriminals have refined their approach to perfection. They infiltrate email systems, manipulate documents, and impersonate brokers, title agents, and attorneys with alarming accuracy. Public records, once intended to create transparency in real estate, now serve as a roadmap for these criminals, arming them with just enough information to fool even the most cautious buyer.

Business Email Compromise (BEC) fraud is the weapon of choice. The FBI reported $446.1 million in real estate losses in 2022, a number that continues to rise as scams grow more sophisticated. Here’s how they do it:

• Hijacking Email Threads – Fraudsters monitor real estate communications and jump in at the perfect moment, sending revised wiring instructions that look authentic.

• Fake Title Company Emails – Buyers receive emails with near-identical formatting to real title company correspondence, instructing them to wire funds to an account controlled by criminals.

• Bogus Sellers – Scammers pose as property owners, tricking title companies into sending large wire transfers meant to pay off a mortgage—except the payment goes straight into a scammer’s hands.

A Homebuyer’s Nightmare

Just ask Darryl Aldrich, a Virginia homebuyer who thought he was wiring his down payment to a title company—until he arrived at closing and was asked where the funds were.

Two days before closing, Aldrich received a real email from his title company, stating that wire instructions would follow. The next day, he received the instructions—same logo, same formatting, same official tone. Trusting the process, he wired $28,000.

Only when he showed up to sign the final paperwork did reality sink in. The money had not been received. The email had been an illusion, a masterful deception. Aldrich scrolled back through his emails, noticing a barely perceptible change in the sender’s address. But by then, it was too late.

“Our hearts just sank,” Aldrich recalled. “That money was gone.”

By sheer luck, Chase Bank flagged the fraudulent account and reversed the wire. But most victims don’t get that second chance. The money disappears into a labyrinth of offshore accounts, never to be seen again.

The Industry’s Failure to Protect Consumers

There is no excuse for the lack of consumer awareness and protection in real estate transactions. CertifID’s survey revealed that 51% of buyers had no prior knowledge of real estate wire fraud before closing, and 60% received little or no fraud education from their agent or title company.

This is a systemic failure. Credit card fraud detection is near-instantaneous. Banks employ sophisticated security measures to block suspicious transactions. So why, in the largest financial transaction of most people’s lives, are security measures still laughably weak?

Tyler Adams, CEO of CertifID, warns that first-time homebuyers are particularly vulnerable. “If you’re entering a real estate transaction today, you’re stepping into one of the biggest cybercrime environments we’ve ever seen,” Adams cautions. “And no one is warning you.”

Title companies are also bleeding money. In one rising scheme, criminals impersonate sellers, duping companies into wiring massive sums to fraudulent accounts. By the time the fraud is detected, the money is long gone.

How to Fight Back Against Real Estate Fraud

Homebuyers and sellers must take their own security into their hands. Here’s how:

1. Verify All Wire Instructions by Phone – Never trust email alone. Call the title company using a known, verified number before wiring funds.

2. Assume Every Email About Money Could Be Fake – If you receive an email about wire instructions, be suspicious. Fraudsters specialize in timing their attacks right before closing, when buyers expect these emails.

3. Avoid Email for Financial Transactions When Possible – If an in-person alternative exists, take it. Paper checks and in-person verification significantly reduce fraud risk.

4. Examine Every Email Address Carefully – Even one incorrect letter in an email address can indicate fraud. On mobile devices, where full email addresses aren’t always visible, always double-check.

5. Demand Security from Title Companies – Buyers should insist on using secure, encrypted communication for wiring instructions and advocate for multi-factor authentication in all real estate transactions.

This Cannot Be the Future of Real Estate

Real estate fraud isn’t just a crime—it’s a direct assault on financial stability. A single fraudulent email can wipe out a lifetime of savings. A single moment of misplaced trust can destroy a family’s financial future.

And yet, despite this growing crisis, the real estate industry remains woefully unprepared. Fraud detection systems lag behind, consumer education is lacking, and financial institutions continue to process fraudulent wires without hesitation.

The Aldrichs got their money back. Most people don’t. And until system-wide reform forces title companies, lenders, and financial institutions to take this threat seriously, real estate transactions will remain a minefield of financial devastation.

Reach out to us for a complimentary, 10-minute consultation call. Let's explore together how we can help you select the right Medicare Supplemental Plan, ensuring your golden years are as fulfilling and worry-free as you’ve always imagined. Give us a call today at 614-943-2265 to schedule your consultation. Let's make your retirement dreams a reality!

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*Please read the offering circular and related risks at invest.modemobile.com.

The Tax Harvesting Revolution: How Smart Investors Reap What They Sow

by Eric Seyboldt, MBA

Client: "Eric, tax season is here, and I keep hearing about "tax harvesting." It sounds like farming. Is this really a strategy I should be using?"

Eric: You’re absolutely right—it is like farming, but instead of harvesting corn or wheat, investors harvest losses. And just like a farmer who carefully decides when to harvest crops for maximum yield, an investor must strategically manage gains and losses to optimize their tax burden.

Tax harvesting—more formally known as tax-loss harvesting—is the deliberate selling of securities at a loss to offset capital gains taxes. This technique ensures that investors only pay taxes on their net gains, potentially saving them thousands, if not millions, over a lifetime. And much like a farmer who faces unpredictable weather and fluctuating market prices, investors must navigate economic conditions, tax laws, and portfolio constraints to ensure they reap the maximum benefit.

The Mechanics of Tax Harvesting: Timing the Market’s Seasons

A skilled farmer doesn’t just go into the fields with a scythe and cut everything down. He waits, observes, and harvests when conditions are ideal. Likewise, tax harvesting is a calculated process requiring precision and patience. Here’s how it works:

1. Identifying the “Loss Crops” – Investors comb through their portfolios, looking for underperforming assets that have declined in value since purchase. These are the "unripened crops"—losses that can be strategically realized to offset taxable gains.

2. Selling at the Right Time – Just as farmers time their harvests based on market prices and weather forecasts, investors must sell underperforming assets before December 31st to lock in losses for the current tax year.

3. Reinvestment Without Violating the Wash-Sale Rule – The IRS enforces the wash-sale rule, which prevents investors from repurchasing the same or "substantially identical" security within 30 days of selling it. Think of it as crop rotation—a farmer cannot just replant the same crop in the same soil immediately; they need to introduce diversity. Investors can reinvest in a similar but not identical asset to maintain market exposure.

4. Using the Harvested Losses – Once the losses are realized, they can be used in three key ways:

   • Offsetting Capital Gains – First, losses are used to offset taxable gains, dollar for dollar.

   • Offsetting Ordinary Income – If losses exceed gains, up to $3,000 can be deducted from ordinary income annually ($1,500 if married filing separately).

   • Carrying Forward to Future Harvests – If losses still remain, they roll forward indefinitely, much like a farmer storing excess grain for future use.

The Economic and Social Implications: Tax Harvesting as a Wealth Engine

Tax harvesting isn’t just an individual wealth-preserving tool—it has broader economic and social effects. Like large-scale agricultural practices that feed entire populations, tax harvesting feeds capital back into the financial markets, encouraging reinvestment and long-term economic growth.

• For High-Net-Worth Investors: Tax harvesting can significantly reduce taxable income, allowing for greater compounding of wealth. This is why hedge funds, institutional investors, and family offices incorporate it into their long-term tax strategy.

• For Everyday Investors: Robo-advisors and automated platforms now use algorithm-driven tax harvesting, allowing even small-scale investors to benefit. What was once a sophisticated strategy for the ultra-wealthy is now accessible to millions.

• For the Government: Some argue that widespread tax harvesting creates revenue shortfalls, as investors consistently offset taxable gains. However, proponents counter that the reinvestment encouraged by tax harvesting spurs economic growth, leading to greater overall tax revenues.

The Ethical and Strategic Debate: Is Tax Harvesting a Loophole or Smart Strategy?

Just as industrial farming has revolutionized agriculture, tax harvesting has reshaped portfolio management. Some critics argue that it’s an exploitation of tax code loopholes, disproportionately benefiting the wealthy. Others contend that it’s simply intelligent financial planning—using the legal framework to maximize efficiency.

Ultimately, tax harvesting is not about avoiding taxes—it’s about deferring and optimizing them. Like a skilled farmer managing soil fertility for long-term sustainability, an investor uses tax harvesting to ensure their portfolio remains robust for future generations.

Conclusion: The Harvest Never Ends

The tax code is a dynamic landscape, much like the changing seasons on a farm. New regulations, shifting market conditions, and global economic events all impact the way tax strategies should be executed. Investors who fail to adopt tax harvesting as a strategy risk overpaying in taxes—akin to a farmer leaving crops in the field to rot.

Tax harvesting is not just a seasonal strategy—it’s a year-round discipline. Those who master it will see their wealth grow and compound with greater efficiency, securing financial stability for decades to come. The question is not whether tax harvesting is valuable, but how soon one should start using it.

And with tax season upon us, the best time to start harvesting… is now.

Contact us for a free, brief 10-minute consultation. Let’s explore strategies to protect your wealth and create the retirement you’ve always dreamed of—one filled with peace of mind and financial confidence. Schedule a free 10-minute consultation today at 614-943-2265, and let’s start turning your retirement vision into reality.

Fixed annuities can be an essential component of a well-rounded retirement strategy, offering security, predictability, and efficiency in financial planning.

These are current fixed annuity rates and their durations from Top A-rated carriers (subject to change at any time, not FDIC insured):

Rates Stayed Level This Week But Likely To Drop In The Near Future! Don’t Wait To Lock These Fixed Annuity Rates In Today!

3-year: 5.20% (under $100k Deposited)

3-year: 5.15% (over $100k Deposited)

5-year: 5.15% (under $100k Deposited)

5-year: 5.35% (over $100k Deposited)

Please feel free to call Eric at 614-943-2265 if you’d like to ask any questions or request information on these fixed annuities or other retirement topics that are on your mind.

REAL ASSETS, Invest Like the Ultra-Wealthy

Have You Considered Adding ‘Real Assets’ like Gold or Bourbon to Your Investment Portfolio?

Amid the current economic uncertainty, savvy investors are increasingly turning to physical assets as a safeguard for their retirement savings. Tangible options like gold and even bourbon barrels are gaining traction, offering a reliable shield against the effects of inflation and excessive currency production. These real assets not only provide a strong defense but also add valuable diversification to portfolios, even during stable economic periods.

Historically, physical assets have demonstrated superior performance compared to other investments during times of market turbulence and financial instability. They consistently deliver dependable protection against economic upheavals. Integrating tangible assets into your investment strategy can be both strategic and rewarding.

In light of today’s economic challenges, considering physical assets may be a smart move to bolster the resilience of your financial plans. Are you interested in discovering how these investments could strengthen your portfolio?

Allocating funds into the asset class known as “Real Assets” may be a strategy that you should consider.

Ask us how to Rollover a portion of Your IRA or 401k To A BOURBON IRA (www.bourbon.fund/how-it-works/) or a GOLD IRA (see link below) and:

• Safeguard your assets from the collapsing dollar

• Incorporate the ‘REAL ASSET’ class into your portfolio like the ultra-wealthy

• Hedge against the current high-inflation conditions

• Protect your retirement assets against economic crises

Just get in touch. We make it easier than ever.

Feedback or Questions?

You’re invited to get in touch with us if you’d like to find out how the Novus Financial Group can help you on your journey to a happy, fulfilling life in Retirement. 

Office: 614-943-2265

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Investment advisory services are offered by duly registered individuals on behalf of CreativeOne Wealth, LLC a Registered Investment Adviser.

The content we provide here isn’t financial advice and cannot be taken as such. Please speak to your financial advisor before making any investment decision. Also, note that every investment comes with its risks and drawbacks. Lastly, we would like to remind you that past results cannot guarantee future returns.

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