It has been a chilly few weeks across the area, but fortunately, spring isn’t far off. As warmer temperatures settle in, a relatively quiet real estate market is likely to heat up.

Better Business Bureau Northwest & Pacific knows this means real estate transactions will be on the rise, and so to will the risk of escrow fraud. Many major transactions require the use of a third-party escrow company. This entity is charged with holding critical funds in a secure account to be distributed once the deal is complete.

These transactions often involve large sums of money, a prospect which serves as a tempting target for scammers. What’s more alarming, is the fact that his scam is already hitting close to home.

According to a report to BBB Scam Tracker, an Oregon man lost $12,000 to Montana Truck Experts, a fraudulent vehicle distribution website that posed as a legitimate escrow business based out of Montana. But thanks to a joint effort between the Montana Attorney General and Better Business Bureau Northwest & Pacific, the website was taken down.  

It’s not just average consumers at risk, even large companies and organizations can fall victim to these scams. Just last year, The Associated Press reported Southern Oregon University lost $1.9 million in an email scheme. The report says scammers posed as a construction company the university was working with and sent them fraudulent wiring instructions. The school then sent the money to the wrong account and didn’t realize it until it was too late.

BBB urges you to take caution when utilizing an escrow account. Follow these tips to avoid escrow fraud:

• Confirm if the company is licensed and bonded. A buyer should check that the escrow service and agent are licensed and bonded with the appropriate state agency (usually the state in which the escrow service is located) and avoid using an offshore escrow company. Those trying to sell their timeshare should also check with the timeshare’s resort to make sure the sale is legitimate.    

• Be vigilant when transferring money. Legitimate escrow companies ask that buyers wire money from their bank account to the company’s bank. They will not ask for a person-to-person money transfer using Western Union or another third-party wire service. Consumers should work with their personal bank and the other financial institution to verify if they are transferring to commercial account instead of a personal account.     

• Be cautious of “too good to be true” deals whether you’re a buyer or seller. Companies may try to entice consumers with offers above market value or advertise luxury items under retail value. Remember, if it’s too good to be true, it probably is.     

If you are the victim of a timeshare resale/escrow scam, BBB recommends reporting your experience to BBB and filing a complaint with the Federal Trade Commission, Oregon Attorney General’s Office and the FBI. For more tips and scam alerts, download the BBB App at bbbapp.org.

— Stephen Mayer is the Better Business Bureau marketplace manager for Oregon. He can be reached at 971-201-8528 or stephen.mayer@thebbb.org.