Quick Answer
The single biggest risk you face at closing is wire fraud: criminals intercept the title company's real wiring instructions and send you fake ones that route your money to them. The rule that protects you: never trust emailed or texted wiring instructions on their own. Always verify by phone using a number you independently looked up, not the number in the email. If you already wired to a wrong account, contact your bank immediately to attempt a recall, and report it to the FBI's IC3 at ic3.gov.
Here is the blunt version: fraudsters do not need to break into your bank. They break into the email chain. They watch your title company, your agent, and your lender, then drop into the conversation right as your down payment is about to move. Closing is when the biggest single sum of your life changes hands, and that is exactly when they strike.
The good news: a legitimate title company will never be annoyed by a verification call. They would rather you double-check than lose your funds. This page gives you the exact checklist that keeps your money in the right account, plus the other scams targeting mortgage buyers right now.
Why Wire Fraud Happens at Closing
It is called business email compromise, and it is a setup, not a hack of your bank. Scammers watch an active transaction, then impersonate the title company, your agent, or your lender to send a last-minute change and an invoice. Closing is the one moment when a large, legitimate transfer is expected, so you are least suspicious right when the money moves.
They switch an account number, add a "new" instruction, or lean on you with language like "closing is delayed until we receive the funds." Every one of those is a cue to stop and verify, not a reason to wire faster. If you want the full picture of what that day involves and where wiring fits in, my answer on what to expect on closing day walks you through it step by step.
Your Wire Fraud Protection Checklist
Keep this list on your desk while you close and run every line before any money moves. And before you send a single dollar, make sure you know exactly what you are paying: my breakdown of closing costs for Texas buyers shows what each line means, so a fake invoice is easier to spot.
- Confirm your closing costs and account details with your title company and lender by phone, using independently verified numbers you looked up yourself.
- If you are wiring, call the title company and confirm the exact bank and account number before you send.
- Be extra suspicious of any last-minute change to wire instructions or a "new" account. Legitimate instructions do not switch at the last minute.
- Verify the recipient name matches exactly. A mismatched name is a stop sign, not a typo.
- If something feels off, act fast and contact your bank immediately, before the funds clear.
- Never share your online banking credentials with anyone, no matter who they claim to be.
Reality Bites
Title companies and lenders will happily confirm wiring instructions over the phone. That is not an inconvenience, it is their job, and they expect the call. A legitimate wire instruction that "changed at the last minute" and arrives only by email is the classic red flag. Real closings do not rewrite your wiring details an hour before funds move.
Other Mortgage Scams to Know
Wire fraud gets the headlines, but three more scams target buyers at the start and the edges of the process:
- Advance-fee loan scams: You pay an upfront fee for a "guaranteed" loan or a too-good interest rate that never materializes. No legitimate lender collects a large fee before you apply.
- Credit repair scams: Anyone who promises to erase accurate history from your credit report is lying. Accurate history stays, and charging you to "fix" it is the scam.
- Wiring to an individual: Your closing funds go to a title company or a lender, never to an individual's personal account. If anyone asks you to wire money to a person, stop and call a licensed professional.
Patriot Pro Tip
A five-minute phone call can save your entire down payment. Fraud moves fast and quietly, so the order matters: verify first, wire second. If you ever feel rushed to send funds, that pressure is itself a warning sign. Slow down, call your title company, and confirm.
What Counts as Mortgage Fraud
- Income fraud: Exaggerating or fabricating income on your application.
- Asset fraud: Claiming assets you do not have or borrowing money without disclosing it as a loan.
- Occupancy fraud: Claiming a home will be your primary residence when you plan to rent it out.
- Straw buyers: Using someone else's credit and income to buy a home for you.
- Appraisal fraud: Inflating the home's value through a biased appraisal.
Red Flags to Watch For
- A lender who suggests you inflate your income or assets.
- Pressure to sign documents without reading them.
- Promises of "guaranteed approval" regardless of your financial situation.
- Requests to wire funds to a personal account rather than a licensed escrow company.
- Deals that sound too good to be true.
How to Protect Yourself
- Work with a reputable, licensed lender you can verify through the NMLS database.
- Be completely honest on your application. Do not exaggerate anything.
- Read every document before signing. Ask questions about anything you do not understand.
- Verify wire instructions directly with the title company using a known phone number.
- Report suspicious behavior to the FBI or CFPB.
Why Lenders Verify Everything
Lenders use sophisticated verification systems. They check tax returns with the IRS (4506-T), verify employment directly with employers, review bank statements for unusual deposits, and confirm that funds for closing are from legitimate sources. Most fraud attempts are caught before closing, but those that slip through are prosecuted aggressively.
Warning
This is general fraud-prevention information, not legal advice. If you believe you are a fraud victim, contact your bank immediately, then your local law enforcement, and file a report with the FBI's IC3 at ic3.gov. Every hour matters while funds are in motion.
Keep Your Money Safe at Closing
As a loan officer and a Realtor, I sit on both sides of closing and I make sure my buyers know exactly who is getting paid and where every dollar goes before it moves. If your closing is coming up, tell me your timeline and I will help you spot the red flags before they cost you.