Wire fraud has become one of the most costly scams in real estate. Criminals monitor email conversations between buyers, agents, and title companies, then send fake “updated wiring instructions” right before closing. Once the money is wired to the fraudulent account, it is almost impossible to recover.
How the scam works
- A hacker gains access to an email account involved in a transaction.
- They watch for a pending closing and learn the parties, amounts, and timing.
- Just before closing, they email the buyer new “wiring instructions” that look legitimate.
- The buyer wires funds to the criminal’s account instead of the title company.
How to protect yourself and your clients
- Always call to confirm wiring instructions using a phone number you already have on file — never a number from the email.
- Be suspicious of any last-minute changes to wiring details.
- Never send sensitive financial information over unsecured email.
- Warn every buyer, in writing, that wiring instructions will not change by email.
- If you suspect fraud, contact your bank immediately and report it to the FBI at ic3.gov.
As a licensed professional, protecting your clients from fraud is part of protecting your reputation. When in doubt, slow down and verify.