You are days from closing on a home when an email arrives with last-minute wiring instructions for your down payment. It looks like it came from your title company or agent, and everything seems routine. But if a scammer has been watching the deal, that wire can send your life savings straight to a criminal. Our GetMyPassword team explains how to recognize real estate wire fraud.
How the scam works
Scammers monitor a real estate transaction, often after compromising the email of a title company, escrow officer, agent, or lender, or by impersonating one. As closing nears, they send the buyer fraudulent wire instructions — a new account number, a “change” to where funds should go — styled to match the real parties and timed to the deal. The buyer wires their down payment or closing funds to the scammer’s account. Because wire transfers are fast and hard to reverse, the money is often gone before anyone realizes the instructions were fake. The amounts are huge, which is why this fraud is so devastating.
Red flags to watch for
- Last-minute changes to wiring instructions or account details.
- Urgency — pressure to wire quickly to “avoid delaying closing.”
- Instructions sent only by email, especially with slight differences in the address.
- A request for secrecy or to skip confirming by phone.
- Account details that differ from what you were told in person.
How to verify before you wire
The single most important habit is to confirm wiring instructions by phone before sending anything — using a number you already have for the title company or agent, not one from the email. Treat any change to instructions as suspect, and verify it directly with a known contact. Be wary of email-only instructions, double-check the account details, and never let urgency rush you past that phone call. Legitimate parties expect this caution and will gladly confirm. A few minutes of verification protects the largest payment most people ever make.
Before wiring a down payment, call the title company on a number you already had — never the one in the email. Five minutes on the phone is the cheapest insurance for the biggest check of your life.
How to protect yourself
Always confirm wire instructions by phone with a known number, be skeptical of last-minute changes, and never rush a large transfer. If you suspect fraud after sending, contact your bank immediately to try to recall the wire and report it. Because these scams begin with a compromised mailbox, protect your own email and accounts with two-factor authentication and a unique password from our password generator, and be cautious about what deal details you share by email.
Frequently asked questions
What is real estate wire fraud?
It is a scam where criminals send a homebuyer fraudulent wiring instructions for their closing funds, often after compromising or impersonating a title company or agent. The buyer wires the down payment to the scammer, and the money is hard to recover.
How can I avoid wiring money to a scammer at closing?
Always confirm wiring instructions by phone using a number you already have, not one from the email. Treat any last-minute change as suspect, verify account details directly, and never let urgency rush you past that call.
What should I do if I already wired the funds?
Contact your bank immediately to try to recall or freeze the wire, report it to the authorities, and notify your title company and agent. Acting fast gives the best chance of recovery, and securing your email helps prevent further fraud.