Imagine saving for years to buy a home. After a long search, you find the perfect property, make an offer and it’s accepted. As closing day draws near, you receive an urgent email from someone who purports to be your closing agent or attorney that contains pre-closing instructions.
You open an attachment to see the address of the home, the name of your title insurance company, the exact dollar amount due from you at closing and detailed wire instructions – all signed by the individual on company letterhead. Someone who claims to be their assistant even calls to make sure you received the message. So, you have your bank wire the funds due to the account listed in the wire instructions. When you show up at closing, however, you discover you were duped out of your five-figure down payment and your closing on that dream home is cancelled.
Scenarios like this are playing out across the globe at an alarming rate.
In 2025, the Federal Bureau of Investigation (FBI)’s Internet Crime Complaint Center (IC3) reported over 1,008,597 complaints exceeding $20.8 billion in losses. Over $275 million of those losses came from real estate transactions, according to the 2025 Internet Crime Report.
Real estate wire fraud is a sophisticated scam that targets both businesses and individuals performing wire transfers of funds. It often stars with business email compromise (BEC), which uses deceptive techniques to hack into the email accounts of real estate professionals. Cybercriminals monitor transaction details and steal or recreate graphics to send spoofed communications that look real, but direct buyers to wire funds into the wrong account. Too often, unsuspecting victims don't realize their money is gone until it's too late to get it back.
It’s easy to be fooled by cybercriminals if you let your guard down, but with a little knowledge and preparation, you can avoid becoming a victim.
Tips for Preventing Wire Fraud
• Be vigilant. Every real estate professional and customer is a potential target. However, cybercriminals tend to prey on older buyers with limited knowledge of cybersecurity or wire transfer protocols.
• Consider using cashier’s checks instead of wiring funds. Your title company can verify checks with the bank prior to funding, which satisfies Good Funds requirements and eliminates your risk of wire fraud.
• Secure your devices and accounts. Taking basic measures to secure your computer, phone, and mobile devices make you less vulnerable to security threats. So does practicing good email and password hygiene. Check out best practices for both with the National Association of REALTORS® Cybersecurity Checklist.. Click here for best practices.
• Learn your title company’s process for wiring funds. Many companies have policies against emailing wiring instructions. Ask your closing agent for a list of approved contacts and wiring instructions at the beginning of your transaction and use them as a reference.
• Slow down. Fraudsters work hard to lull buyers into a false sense of security, so they don’t take the time to properly vet requests. Always check the sender’s email address for irregularities. When responding to an email, use “forward” instead of “reply.” Typing a trusted email address lowers your chance of accidentally responding to a fraudster using a spoofed email.
• Be suspicious of any changes to wiring instructions, especially on Fridays or before holidays. Changes to wiring instructions are rare and should only come from your closing agent. Since it takes just 72 hours to wire money, fraudsters often request wire changes on a Friday or just before a holiday, so the funds are gone by the time anyone notices.
For a printable list of tips for preventing wire fraud, visit our Wire Fraud Flyer #1 and Wire Fraud Flyer #2.
If You Think You Might Be a Victim of Wire Fraud
If you recently complied with a request to change wiring instructions without called a trusted source to verify the request, you could be a victim of wire fraud and need to act immediately. Click here to learn more.
