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How Earnnest is eliminating wire fraud one transaction at a time
Agent Resources

How Earnnest is eliminating wire fraud one transaction at a time

Earnnest secures your transactions from wire fraud by eliminating wires all together.

Cara Brewton
May 10, 2022

In real estate, wire fraud occurs when a homebuyer’s money is sent to the wrong bank account due to criminal activity. Criminals reach out directly to homebuyers (usually via email) pretending to be an agent involved in the home purchase. The imposter instructs the buyer to wire funds to a fraudulent account — wiping out the homebuyer’s savings in the process. The American Land Title Association reports less than 29% of these cases fully recover their lost funds.

How can agents protect buyers from wire fraud?

One tangible thing agents can do to protect their buyers is implement digital earnest payments using Earnnest. You might be thinking, “Hey, isn’t moving money digitally just as risky as a wire?” It’s not, and here’s why: Earnnest has created a fully vetted, closed network of escrow holders. This means fraudulent accounts can’t show up in the transaction. When creating an earnest deposit request, the agent choses their trusted escrow account inside our secure system. Next, the request is sent to the buyer. When the buyer pays, the funds are transferred to the correct account — every time.

How are escrow accounts vetted?

The process we’ve developed to register and onboard escrow holders prevents false accounts from making it into our network. Each escrow holder starts by talking with our team and registering as an Earnnest user. Their business is then registered and reviewed using Earnnest’s secure vetting process. Once registration is complete, escrow deposit accounts are added and verified using micro-deposits. This entire process can be completed in as little as two business days and our helpful staff are available with guidance through every step.

What does this mean for me?

Before any money is transferred, both the sending (buyer) and receiving (escrow) accounts are verified. So, agents and homebuyers can rest assured that using Earnnest’s secure, closed network will protect them from wire fraud. In fact, Earnnest has completed over 120,000 transactions with zero instances of fraud.

Get the Earnnest smartphone app to start your secure transaction today!

Ready to go digital?

Download the app and connect your escrow holder. Once they're registered, you'll be ready to start requesting digital earnest money payments from homebuyers.

ABOUT THE AUTHOR
Cara Brewton

Cara Brewton has been educating Earnnest user since 2019. Whether by visual design, by creating training resources, or by sharing client stories, her goal is to ease the way for the agents and homebuyers using Earnnest’s products.