Buying or selling a home requires sharing a lot of personal information. Bank statements, identification, credit information, mortgage documents and large financial transfers can all be part of the process.

That makes protecting your identity important every day — and especially important when you're involved in a real estate transaction.

As a Realtor working with buyers and sellers throughout New Hampshire and Massachusetts, I believe clients should know not only how to navigate a real estate transaction, but also how to recognize situations that could put their personal and financial information at risk.

Here are 10 practical ways to better protect yourself.

1. Consider Freezing Your Credit

A credit freeze is one of the simplest tools available to help prevent someone from opening a new credit account using your identity.

When your credit is frozen, potential creditors generally cannot access your credit file until you lift the freeze. You can place a freeze directly with Equifax, Experian and TransUnion, and federal law allows you to do so for free.

When you legitimately need access to your credit — such as when applying for a mortgage — you can temporarily lift the freeze.

2. Make a Habit of Reviewing Your Credit

You don't need to wait until you're applying for a mortgage or car loan to find out what's on your credit report.

Periodically review your reports for accounts, credit inquiries, addresses or other information you don't recognize. The sooner you discover suspicious activity, the sooner you can begin addressing it.

The federally authorized website for obtaining your free credit reports is AnnualCreditReport.com.

3. Stop Reusing Important Passwords

It's convenient to use the same password everywhere, but it also means one compromised account can potentially put several others at risk.

Your email, banking, credit card and financial accounts should each have strong, unique passwords. A reputable password manager can make this much easier to manage.

4. Use Multi-Factor Authentication

Whenever it's available, turn on multi-factor authentication.

This adds another layer of security beyond your password. Even if someone obtains your login information, they may still be unable to access the account without the additional verification.

Pay particular attention to your email, banking, investment, credit card and financial accounts.

5. Treat Unexpected Messages With Caution

Scammers have become very good at making emails and text messages look legitimate.

A message may appear to be from your bank, mortgage company, delivery service or another business you recognize. It may even create a sense of urgency by claiming your account has been locked or that immediate action is required.

Rather than clicking the link in the message, go directly to the company's website or contact the company using a telephone number you already trust.

A little skepticism can save you a major headache.

6. Protect Your Email Like a Financial Account

Your email account deserves more protection than many people give it.

Think about how much information passes through your inbox: purchase confirmations, financial statements, password-reset messages, mortgage correspondence and personal conversations.

If someone gains control of your email, they may be able to use it to gain access to other accounts.

Use a unique password, enable multi-factor authentication and periodically review your account for unfamiliar devices or login activity.

7. Turn On Banking and Credit Card Alerts

You shouldn't have to wait for a monthly statement to discover an unauthorized transaction.

Most banks and credit card companies allow customers to receive notifications when purchases, withdrawals or transfers occur. You may also be able to receive alerts for password changes or unusual account activity.

These notifications give you another opportunity to catch something quickly.

8. Buying or Selling a Home? Be Extremely Careful With Wire Transfers

This deserves special attention.

Real estate transactions can involve substantial amounts of money, which makes buyers, sellers and real estate professionals attractive targets for criminals.

One particularly dangerous scam involves fraudulent wiring instructions. A criminal may impersonate a title company, attorney, lender, real estate professional or another party to the transaction and send instructions directing money to an account they control.

Never send money simply because you received wiring instructions by email.

Before transferring funds, independently contact the title company, closing attorney or appropriate party using a telephone number you have previously verified.

And if you receive an unexpected message saying wiring instructions have suddenly changed, don't assume it's legitimate.

Stop. Call. Verify.

Those three steps could prevent a devastating loss.

9. Be Selective About Sharing Personal Information

Your Social Security number, driver's license, tax documents, bank statements and other financial records shouldn't be provided casually.

Before sending sensitive information, make sure you know who is requesting it, why it's necessary and how they want you to transmit it.

During a real estate transaction, don't hesitate to ask questions if you're uncomfortable with a request for personal or financial information.

10. If Something Looks Wrong, Act Quickly

A transaction you don't recognize, a password-reset message you didn't request or an unfamiliar account appearing on your credit report shouldn't be ignored.

Contact the financial institution involved, secure any potentially compromised accounts and review your credit reports.

The Federal Trade Commission also operates IdentityTheft.gov, where identity-theft victims can report what happened and receive guidance for developing a recovery plan.

Protecting Yourself During a Real Estate Transaction

Buying or selling a home is exciting, but it's also a time when you're exchanging more financial and personal information than usual.

My advice to clients is simple: don't allow the excitement or pressure of a transaction to make you rush when money or sensitive information is involved.

If an email, text or telephone call doesn't seem right, verify it independently before taking action.

As your Realtor, I'm always happy to help you determine who you should contact when you receive an unexpected request related to your transaction.

Thinking About Buying or Selling in New Hampshire or Massachusetts?

Whether you're purchasing your first home, preparing to sell, relocating or simply trying to understand your options, I'm happy to help.

Todd Feyrer
REALTOR® | Licensed in New Hampshire & Massachusetts
RE/MAX Town Square

This article is intended for general educational purposes only and should not be considered legal, financial or cybersecurity advice.