In my 25 years working in real estate, I’ve seen the market rise, fall, and evolve, but one of the most chilling trends I’ve witnessed is the rise in real estate wire fraud. I’ve seen clients nearly lose everything, and I’ve even been impacted myself. If you are buying a home, you need to understand this risk and take it seriously. Wire fraud is real, and it is happening every single day across the country.
What Is Wire Fraud in Real Estate?
Wire fraud in real estate typically occurs when a scammer gains access to the email account of someone involved in the transaction, often a real estate agent, title officer, or even a buyer or seller. Once inside, the scammer monitors communication and waits for the right time to strike. That moment usually comes right before closing when the buyer is about to wire a large sum of money for their down payment or closing costs.
The scammer sends a fake email that looks legitimate, complete with closing documents and instructions. The email usually appears to come from a trusted source but has subtle red flags: a slightly misspelled e-mail address, an unfamiliar phone number, or a sense of urgency. And once the money is wired? It is gone. Unlike a credit card or check, wire transfers cannot be reversed. That money vanishes, often into an offshore account, and recovery is nearly impossible.
A Real-Life Warning
One buyer recently shared their story of nearly being scammed just days before closing. They received an email with wiring instructions that appeared legitimate and even included a PDF they had seen before. But a closer look revealed the red flags: a typo in the real estate agent’s email, a generic email domain, and a suspicious phone number. Fortunately, this buyer had enough knowledge of cybersecurity to question the email and contact the real title agent directly. The real estate agent confirmed it was a phishing attempt. If the buyer had followed the fake instructions, they could have lost hundreds of thousands of dollars.
This story is not unique. It happens constantly. In some cases, buyers are not as lucky. I know of transactions where buyers lost everything, their entire life savings, with no way to recover it. The emotional and financial devastation is overwhelming.
How to Protect Yourself From Wire Fraud
Here are the critical steps every buyer must take:
- Confirm Wiring Instructions Verbally
Never trust email instructions alone. Call the title company using a phone number you received in person, from their official website, or your real estate agent. Confirm the wire instructions directly before you send any money. - Be Suspicious of Last-Minute Changes
Title companies rarely change wire instructions. If you receive an email claiming the wiring information has changed or urging you to act fast, treat it as a red flag. - Avoid Clicking on Links in Emails
Phishing emails often include links or attachments designed to collect your information. Do not click. Always verify the sender first. - Use Secure Email and Avoid Public Wi-Fi
Protect your own email accounts with two-factor authentication. Never conduct financial transactions over public or unsecured Wi-Fi networks. - Get Everything in Writing, But Verify in Person
It is okay to receive initial instructions by email, but always verify by phone before sending funds. - Ask the Title Company How They Protect You
Some companies use encrypted PDF instructions or multi-step verification. Ask about their protocols. Choose a title company that takes security seriously.
What Should You Do If You’re Targeted?
If you suspect fraud, stop immediately. Do not respond. Contact your real estate agent and the title company using known phone numbers. If money has already been wired to the wrong account, contact your bank and the FBI’s Internet Crime Complaint Center (IC3) right away. Time is of the essence.
Final Thoughts
Wire fraud is terrifying. I have seen firsthand how easily someone can fall for a convincing email, especially in the high-stress days leading up to a closing. You must slow down, verify everything, and know that it is always okay to double check.
If you are buying a home and want someone in your corner who can walk you through every step with security top of mind, reach out. I will connect you with a vetted real estate expert who knows how to protect your transaction and your money.
