A 'simple' email scam almost cost Barbara Corcoran $400,000—here's how to avoid falling for the same thing
In February, Barbara Corcoran, founder of real estate brokerage firm Corcoran Group and judge on ABC's "Shark Tank," was nearly scammed out of $400,000.
"Scammers found their way to me in the most clever and simple way," she tells CNBC Make It.
The scammers emailed Corcoran's bookkeeper pretending to be her assistant. The message contained an invoice supposedly authorized by her assistant to pay for an investment property in Europe that needed renovations.
"The story was totally plausible because I invest in a lot of real estate and do a lot of renovations for a living," says Corcoran.
However, the investment property it referred to was not real and Corcoran's assistant hadn't actually sent the email.
Corcoran became aware of the scam when her assistant was copied in an email from the bookkeeper about the wire transfer. The scammers had created a fake email address for her assistant by leaving out one letter of her name. Corcoran and her team realized the trick when her bookkeeper added her assistant to the conversation using her real email address.
"No one reads their email addresses that carefully that you see day in and day out, and the scammers knew it," says Corcoran.
Thankfully, though the money was already gone from Corcoran's account, her bank in New York froze the money before it made its way to the scammers in China and she was able to get it all back.
This type of scam is called business email compromise (BEC) or email account compromise (EAC) by the Federal Bureau of Investigations. These scams happen when someone compromises businesses' email accounts in order to conduct unauthorized transfer or funds.
Last year, the FBI received 23,775 BEC complaints with losses adding up to more than $1.7 billion, according to the FBI's 2019 Internet Crime Report.
In order to avoid becoming the latest victim of a scam, Corcoran says to always double check details like email addresses, which she plans to do from now on.
"It is as simple as that," she says.
There are other ways to protect yourself from scammers:
- Beware of any sense of urgency in an email and take your time verifying email addresses and phone-number area codes, an ex-FBI agent previously told CNBC Make It.
- Familiarize yourself with the common tricks scammers rely on, such as pretending to be a loved one in trouble or posing as the Internal Revenue Service to pressure you into paying a debt.
- If you are bombarded with suspicious robocalls, there ways to stop receiving them. Start by filling out a form in the National Do Not Call Registry.
- Report any incident to the Federal Trade Commission if you have fallen victim or received a potential scam.
Disclosures: NBCUniversal and Comcast Ventures are investors in Acorns. CNBC owns the exclusive off-network cable rights to "Shark Tank."
- 1Here's the net worth Americans say you need to be considered wealthy
- 25 free online courses that can help you learn how to invest
- 3The top 1% of Americans have about 16 times more wealth than the bottom 50%
- 4Here's what to do if you're 'bad with money,' says author of 'I Will Teach You to be Rich'
- 5Wealth manager: Here's how to retire with $1 million in 20 years