Wire Fraud in Real Estate Closings

How Wire Fraud Scams Work

In a typical real estate wire fraud scheme, criminals hack or spoof the email account of a real estate agent, lender, or title company and monitor the conversation until closing is near. Just before funds are due, the buyer receives what looks like a legitimate email with updated wiring instructions, directing them to send their down payment or closing funds to a fraudulent account. Once the money is wired, it is often gone for good.

Why Real Estate Closings Are a Target

Home purchases involve large, one-time wire transfers, and buyers are often unfamiliar with the process, making them easy targets. With agents, lenders, title companies, and sometimes attorneys all emailing back and forth, there are multiple points where a criminal can insert themselves into the conversation.

Warning Signs to Watch For

Wire fraud scams have become increasingly sophisticated, often using details pulled directly from the actual transaction to appear convincing. Knowing the common red flags can help you catch a scam before it costs you your closing funds.

• A last-minute change to previously provided wiring instructions
• Urgent or pressure-filled language pushing you to act immediately
• Email addresses that look almost, but not quite, correct
• Requests to keep the updated instructions confidential
• An unexpected phone call or text message following a suspicious email

How to Protect Yourself

• Always call your title company directly, using a phone number you look up independently, to verbally confirm wiring instructions before sending any funds
• Never rely on wiring instructions received only by email, even if the email looks legitimate
• Treat any last-minute change to instructions as a red flag
• Use a secure closing portal if your title company offers one
• Monitor your bank accounts closely in the days after closing

What to Do If You Suspect Fraud

If you believe you've wired funds to a fraudulent account, contact your bank immediately to request a wire recall, notify your title company right away, and file a report with the FBI's Internet Crime Complaint Center at IC3.gov. Speed matters enormously here. The sooner you act, the better the odds of recovering the funds.

Our Commitment to Secure Closings

We take wire fraud prevention seriously and follow verified callback procedures before releasing any wiring instructions to our clients. Our staff will never change wiring instructions over email alone, and we encourage every client to independently verify instructions by phone no matter how legitimate an email may appear.

If you ever receive wiring instructions that seem even slightly off, or that differ from what we've previously provided, call our office directly using a number you already have on file before sending anything. A five-minute phone call can save you from an irreversible financial loss.