How to prevent homeowner scams

A list of some of the scams I hear about and how you can protect yourself follows.

Q: I hear warnings about wire fraud. How does that work?

A: When buyers go into contract for a house, they typically agree to wire their initial deposit (known as “earnest money,” usually 3% of the purchase price) to the neutral title/escrow company. Scammers will use a variety of methods, but essentially they will try to get the buyer to wire their deposit to a bogus account. They do this by impersonating someone in the transaction (escrow company, bank, real estate agent, etc.) with a legitimate-sounding request: “Because of new regulations, we need you to wire your deposit to this new account number, ABC123456789.” This, of course, is not the escrow company; it’s probably an overseas account and the money will not be returned.

Q: How do I protect myself as a buyer?

A: Only take your wire instructions directly from the escrow company, and call the number on its website or some other official place to confirm the wire instructions you have received. You can also go to one of its offices or get a cashier’s check and take it to the escrow company.

Q: I am selling something on eBay and the buyer said they were out of the country but would send a cashier’s check and have a trucking company come pick up the item. The buyer would include an extra amount in the cashier’s check so that I could pay the trucking company out of my pocket. Aren’t cashier’s checks always legitimate?

A: No. Counterfeiters are getting very good at faking what we used to think was as good as cash. If anyone ever wants to send you a cashier’s check in exchange for cash, be very suspicious. Take it to your bank and wait for it to clear before giving out any cash or merchandise. If not, it might take the bank a few days to figure out that it is counterfeit and you’ll be left without your item and you’ll be out the extra cash.

Q: A gardener, tree trimmer, bricklayer, driveway sealer, painter, etc., stopped by and said something like, “We have an extra crew. We are doing work in your neighborhood and someone canceled. I have this extra (fill-in-the-blank product) to install. We can give you a really good price. We helped your neighbor last month.” You get the idea: an unsolicited offer at what appears to be a really good price. It seems like a deal. Is it?

A: Most likely not. Often these are just scammers looking for a way to get you to pay them for work they won’t finish. Sometimes it really is a legitimate tradesperson looking to get more business, but be very suspicious. Ask for references and call them. Ask for copies of their business license and insurance. If it sounds like a good deal, it probably isn’t. If you need that work done, ask friends and family for references. Ask on Nextdoor. Call your real estate agent. Check with the Chamber of Commerce or Yelp.

Q: I receive a lot of phone calls that sound legitimate. How do I know if they are?

A: There are all sorts of phone scams. They are easy and safer, as they can be done from miles (or countries) away. Most often, they prey on the target’s honesty and trust. Here is what I would tell my very trusting mother: Never – and I mean never ever – give out any banking information, credit card numbers, user names, passwords, etc., to someone who calls you. If you call someone to pay a bill, for example, that’s a different story. If someone calls and you think it might be legit, ask where they are calling from: IRS, PG&E, Wells Fargo, LAPD, etc. Thank them, hang up, go to that website and call the number listed there. Do not call the number the scammer gives you – it’s probably just their cellphone. They might even give you a legitimate number knowing that you might check it out but hope you don’t actually call it.

Bottom line: Scammers are everywhere. If you are ever asked for any kind of money, payment or gift card, don’t be in a rush. Call someone you trust and ask for help figuring it out.

Or call me.

Owen Halliday is a longtime Los Altos resident and realtor who manages the Christie’s-Sereno office in downtown Los Altos. Call him at (650) 492-0062 or email Owen@Sereno.com.