Buying a home is a major milestone for any family. For military families, navigating frequent moves, tight timelines and unfamiliar markets can feel especially rewarding. Unfortunately, the homebuying process, with its complex paperwork, wire transfers and multiple third-party contacts, offers scammers perfect cover — and military families are uniquely at risk.
Once you begin the homebuying process, such as applying for a mortgage, signing digital documents or preparing to wire funds, you may see a spike in calls, texts and emails. Many will be legitimate, but some could come from fraudsters posing as lenders, title agents or even your real estate agent.
Scammers know how to strike when your focus is divided and your guard may be down. “One of our recent borrowers received a DocuSign email that appeared to be from AAFMAA Mortgage Services LLC (AMS) that requested he pay $500. It was a fake, and thankfully, he did not fall for it,” advises Rick Maines, VP Sales for AMS.
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How They Get Away With It
Publicly available data and advanced technology often fuel scams like these. “When you apply for a home loan online, that company may be an aggregator that collects and sells your information to multiple lenders. Those other lenders may then call, text, email, or mail you offers to gain your business. Most are probably legit, but it’s also an opportunity for bad actors to find and purchase your information,” says Maines.
In addition, your lender may share information with other companies to evaluate your credit, verify the information on your mortgage application, and approve your loan. For example, you apply for a mortgage and consent to allow your lender to review your credit report. The credit reporting agencies (Experian, TransUnion, and Equifax) will record that the lender made an inquiry on your credit report and may sell that data to other lenders.
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You’re Not Alone
Real estate and mortgage fraud surged in 2024, with several forms of scams increasingly affecting homebuyers and sellers. In less than 10 years, the annual losses from real estate wire fraud have increased fiftyfold, from $9 million to $446 million, according to the FBI Internet Crime Complaint Center (IC3).
Wire fraud is typically executed through business email compromise (BEC). Nearly one in ten buyers and sellers reported being targeted during property closings, with losses per incident averaging more than $70,000, often due to fraudsters impersonating title companies or agents to divert funds using hacked email threads or spoofed domains.
If a criminal can access this data at any juncture, they might send a convincing email — complete with your correct name, property address, and a professional-looking signature — claiming to be your title company. The message may say the wire transfer instructions have changed, and unless you double-check, you could unwittingly send your life savings to a fraudulent overseas account.
The sophistication of fraudsters continues to evolve, with increased use of AI-generated emails, deepfake identification documents and digital voice scams. As a result, companies across the industry are being urged to adopt stronger authentication technologies and to educate clients proactively at every step of the transaction. Despite the growing threat, over half of homebuyers in 2024 reported not being informed about wire fraud risks before closing.
“Military buyers are particularly vulnerable because they often purchase homes from overseas or across the country, using digital tools to sign contracts and wire money without ever stepping foot in a title office,” Maines says. “This convenience is crucial, but also dangerous if the proper safeguards aren’t in place.”
Spotting the Fakes
Wire fraud remains the biggest threat, he says. “Title companies and lenders won’t suddenly change wiring instructions via email or text. If you receive such a message—no matter how authentic it looks—call the company directly using a phone number you already have on file,” Maines says. “Never use the contact information provided in a suspicious message.”
These scams work because they’re precise and manipulative. Fraudsters often register fake domains that look like real companies, changing just one letter or using a different top-level domain like ".net" instead of ".com." They create a sense of urgency and fear with messages like “Wire funds today to avoid delays,” or “Act now or your closing will fall through.”
“Take that urgency as a red flag, not a call to action,” notes Maines. “If something feels off, slow down and reach out to the people you know and trust. Legitimate professionals will never rush you.”
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How to Report Fraud
If you fall victim to a mortgage scam, contact your bank and request a recall to halt the transfer. Report the crime to the FBI’s IC3.gov and the Federal Trade Commission at FTC.gov. Of course, if you’re working with an AMS Military Mortgage Advisor, contact us immediately too.
Time is critical, as early reporting can sometimes make the difference between recovery and permanent loss.
We’re Here to Help
Whether you’re thinking about buying, ready to start home-shopping in earnest, or considering a refinance, one of our Military Mortgage Advisors, a licensed mortgage loan originator, will be happy to provide you with an honest and fair comparison of your mortgage options, including a wide range of affordable mortgages designed to meet your needs.
Ensuring Armed Forces Mutual Members obtain the best mortgage possible is our mission. Get your free mortgage assessment today or give us a call at 844-422-3622!