Tips to Protect Yourself from Fraud in a 1031 Exchange Transaction

Now more than ever, taxpayers need to take appropriate measures to protect themselves from fraud when engaging in a 1031 exchange transaction. In this article, we are going to offer up some tips to protect yourself from fraud when conducting a 1031 exchange.

Always be Extra Careful when Communicating via Email

There are a wide variety of fraud schemes that target people via email. It’s important to always be extra careful when communicating via email, especially when someone asks you to share personal information via email. If you get an email from your qualified intermediary or bank asking to approve a wire, for example, you should always call a verified number and confirm that the email is legitimate before proceeding.

Maintain Strong Passwords

Abiding by password best practices across all your online accounts is another great way to safeguard yourself from potential fraud. Make sure to use different passwords for each account you have. Use a password manager so you only have to remember one password.

Work with a Trusted Qualified Intermediary

Qualified intermediaries are not regulated by the federal government. As a result, there are some less than trustworthy intermediaries out there. Be sure to work with a qualified intermediary who has a proven track record and a lot of experience.

Our Minnesota Qualified Intermediaries are Here to Help!

At CPEC1031, our qualified intermediaries are here to help! We have over twenty years of experience working with clients on their 1031 exchanges or real property. We have the knowledge and experience to ensure the success of your next exchange. Don’t hesitate to contact us today to discuss the details of your next like-kind exchange and see how we can help you defer capital gains taxes when selling real estate.

• Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2020 Copyright Jeffrey R. Peterson All Rights Reserved

Corporate Account Takeover - How it Works & Tips for Prevention

Corporate account takeover is a type of cyber attack that is growing more and more common. It’s important for those engaging in 1031 exchanges to be aware of how these attacks work and how to prevent them. In this article, we are going to discuss corporate account takeover and how to protect against this type of cyber attack.

How Does a Corporate Account Takeover Occur?

A corporate account takeover occurs when a cyber-criminal takes over your business account. Usually this happens either through the theft of your online credentials or the hijacking of your online session.

How can Someone Steal your Online Credentials?

Typically the way this works is a cyber criminal will start with some sort of social engineering attack. This often comes in the form of an e-mail that has an attachment or a link they want you to click on. If you download the attachment, malware will be downloaded onto your device. If you click on the link, you will be brought to a website that will download malware to your device, or ask you for your login credentials. This malware could be something like a keystroke logger, which collects your keystrokes as you go through your online banking session. Using this information, a fraudster can gain access to your account. This is just one example of how a fraudster can gain access to your online accounts.

How to Avoid Corporate Account Takeover

Education and awareness on social engineering and how fraudsters gain access to accounts is essential. Everything from the physical elements (such as protecting your computer) to email (knowing how to spot phishing emails and other red flags) are great methods for preventing corporate account takeover. It’s also important to work with your financial institution to ensure that they are offering you the best fraud prevention tools available.

Contact CPEC1031

It’s important to be strategic when approaching a 1031 exchange, and a qualified intermediary is the best advisor you can have on your team. At CPEC1031, we have been facilitating exchanges for clients around the United States for over two decades. Reach out to our qualified intermediaries today to discuss the details of your next 1031 exchange! You can find us at our main office in downtown Minneapolis, or at one of our satellite offices around the country.

• Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

What is Business Email Compromise?

Business email compromise occurs when someone's email account is actually taken over by a fraudster or a fraudster uses an email address that’s very similar to a real email address for social engineering purposes.

For example, let’s say you’re a small business and you process wires for that business. Your CEO sends you an email with instructions for that day’s wire.

A business email compromise attacker will create an account that looks very similar to your CEO’s email address, and then they will send you an email saying something to the effect of: “For this particular wire use these instructions instead. Ignore the instructions I just sent you.”

The danger with this is, if you're just relying on email and you simply take every email on face value, you'll go ahead and authorize the wire transfer.

Another type of attack that falls under the category of business email compromise is where they actually do take over a legitimate email account.

So it’s important to always check the email address itself. In addition to that, when you receive a request for funds transfer you should always validate that request because it could be a legitimate account that has been taken over by a fraudster.

CPEC 1031 – The Leaders in 1031 Exchange Services

CPEC1031 has been helping clients through the ins and outs of the 1031 exchange process for over twenty years. Our qualified intermediaries can help prepare your documents, advise you on replacement property, and answer all of your questions throughout the 1031 exchange process. Contact us today to learn more about the 1031 exchange process and whether or not you’re a good candidate. You can find us at our primary office in downtown Minneapolis, or at one of our satellite offices around the United States.

• Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved