How Homebuyers Can Protect Themselves Against Wire Fraud

In today’s digital real estate environment, wire fraud has become an increasingly serious threat—especially for homebuyers making large financial transfers during closing. Cybercriminals are exploiting email communication and targeting unsuspecting buyers, leading to devastating losses that are often difficult, if not impossible, to recover. Fortunately, there are effective ways to protect yourself and ensure your funds get to the right place.

Here’s a guide to help you stay safe and informed.

What Is Real Estate Wire Fraud?

Real estate wire fraud typically occurs when a hacker gains access to the email account of a real estate agent, attorney, or title company. They monitor communications until just before closing, then send fake wire instructions to the buyer—often appearing legitimate and urgent. If a buyer sends the funds to the fraudulent account, the money can disappear within minutes.

Red Flags to Watch For

1. Last-Minute ChangesIf you receive updated wiring instructions close to closing—especially from a new email address or without prior discussion—treat it as suspicious. Reputable professionals rarely change banking information at the last minute.

2. Urgent or Unusual RequestsEmails urging you to “act fast” or wire money “immediately to avoid delays” are common tactics used by scammers. A legitimate title company will never pressure you under tight, suspicious deadlines.

3. Email InconsistenciesCybercriminals are clever with domain spoofing. For example, you might receive an email from "yourtitlecompany@titlecompnay.com" instead of "yourtitlecompany@titlecompany.com". One misplaced letter can make all the difference.

Steps to Protect Yourself

1. Establish a Secure Communication Plan EarlyAt the beginning of your transaction, talk with your real estate agent and title company about how wiring instructions will be shared. Confirm they will not change mid-process and agree on a verification protocol.

2. Always Call to Verify—Using a Trusted NumberBefore wiring any funds, call your title company or escrow officer directly to confirm the instructions. Use a phone number you received from a verified source (like an earlier business card or website), not one from the email with the wire instructions.

3. Be Wary of Public Wi-FiAvoid sending sensitive information or making transfers over public networks. Hackers can intercept communications easily on unsecured connections.

4. Use Two-Factor Authentication (2FA)If your email provider supports it, enable 2FA. This adds an extra layer of security to your accounts, making it harder for criminals to gain access.

5. Educate Yourself and Ask QuestionsDon’t be afraid to ask your real estate or legal team about the steps they’re taking to prevent fraud. Professionals in the industry are increasingly aware of this issue and should be prepared to help you navigate it safely.

What to Do If You Suspect Fraud

Time is critical. If you think you’ve been targeted or sent money to a fraudulent account:

• Immediately contact your bank and request a wire recall or reversal.

• Contact the FBI’s Internet Crime Complaint Center (IC3) at www.ic3.gov.

• Notify your real estate agent and title company so they can alert others and potentially prevent further damage.

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Final Thoughts

Buying a home should be an exciting milestone—not a financial nightmare. As wire fraud becomes more sophisticated, staying vigilant and informed is your best defense. By taking a few proactive steps, you can protect yourself and your investment, ensuring a safe and successful closing.

Remember: When in doubt, double-check. One phone call could save you from losing your entire down payment.

If you found this post helpful, consider sharing it with friends or family who are in the homebuying process. Awareness is the first line of defense against fraud.