Closing safetyWire fraud in real estate: how it happens and how to stop it
Real estate wire fraud usually starts with a hacked or look-alike email account: the criminal watches the deal and, just before closing, sends new wire instructions that look like they come from the title company or the agent. The defense is simple and must be repeated to every client: never trust wire instructions from an email alone – call the title company at a number you already know before sending money. If money was sent, call the bank at once to request a recall and file a complaint at ic3.gov.
How the scam works
1. Access
A criminal gets into the email of someone in the deal – agent, buyer, title, lender, attorney – or creates an address that looks almost the same.
2. Watching
They read the thread quietly and learn the closing date, the amount and the people involved.
3. The switch
Close to closing they send "updated" wire instructions or ask to change the payment method, often with urgency.
4. The money moves
Funds go to the criminal's account and are moved on quickly – which is why minutes matter.
Warning signs
- New or "updated" wire instructions by email, especially late in the deal.
- A sender address or link that is one letter off from the real one.
- Urgency or secrecy: "wire today or lose the house", "do not call, I'm in a meeting".
- A request to change from check or the known account to a new account.
How to verify wire instructions
- Call the title or escrow company at a phone number you got at the start of the deal or from its official website – never one in the email with the instructions.
- Confirm the account details out loud, then send a small test only if the title company suggests it.
- Treat any change in instructions as fraud until verified by phone.
- Use two-factor sign-in on every email account in the deal.
If money was already sent
- Call your bank immediately and ask it to recall the wire; ask what documents it needs.
- File a complaint at ic3.gov as soon as possible, whatever the amount.
- Tell the title company and your agent at once, by phone.
What the transaction coordinator does
Send a wire-fraud warning to the buyer when the file opens and again with the closing instructions, in the client's language; give the title company's verified phone number in the same message; and never forward wire instructions yourself.
Questions about wire fraud in real estate
What is wire fraud in real estate?
A scam where criminals send fake wire instructions – usually by a hacked or look-alike email – so the buyer's closing funds go to the criminal instead of the title or escrow company.
How do I verify wire instructions?
Call the title or escrow company at a number you already know or from its official website, not a number in the email, and confirm the details before sending.
What should I do if I wired money to a scammer?
Call your bank right away to request a recall of the wire, file a complaint at ic3.gov, and tell the title company and your agent.
Can wire fraud money be recovered?
Sometimes, if the bank acts fast – that is why the first call should be to the bank, immediately.
What is a wire fraud warning form?
A short notice the agent, TC or title company gives the buyer: wire instructions will never change by email; always verify by phone at a known number.
Related
In ClosingCode every file gets a "send the wire-fraud warning" task with a ready message in English and Spanish – and any message that contains bank account or routing numbers is blocked before it can be sent.
Start free trialSource: FBI Internet Crime Complaint Center, Public Service Announcement I-060923-PSA "Business Email Compromise: The $50 Billion Scam" (June 9, 2023) – real estate sector, protection and what to do after a fraudulent transfer.
General safety information, not legal advice. If you are a victim, contact your bank and law enforcement. ClosingCode is software; it is not a law firm, bank or brokerage.