PATRICK'S QUICK ANSWER
Wire fraud spikes at closing because scammers impersonate title companies and email fake wire instructions. The rule that protects you: never trust wiring instructions sent by email, always confirm them by phone with a number you called yourself, and verify the title company directly. I brief every client on wire fraud before closing and repeat the warning in writing. A five-minute phone call can save your entire down payment. Ask Patrick about wire fraud protection.
Scammers impersonate your title company and email fake wire instructions right before closing. This page shows how the scam works, the red flags that give it away, and the simple phone call that can protect your entire down payment.
Wire fraud is a scam where criminals intercept or impersonate your title company or lender via email and trick you into wiring your closing funds to a fraudulent account. It is one of the fastest-growing financial crimes in real estate, with victims losing tens of thousands of dollars.
The best protection is simple: NEVER wire closing funds based solely on email instructions. Always call your title company or closing agent using a known phone number to verify wire instructions before sending money.
How Wire Fraud Scams Work
Criminals hack or spoof email accounts of real estate agents, lenders, or title companies. They send convincing emails with wire instructions that look legitimate. The email often comes right before closing when you are expecting wire instructions. If you wire the money, it is gone, typically unrecoverable.
Red Flags to Watch For
- Email from a slightly different address (one letter changed)
- Urgency or pressure to wire immediately
- Wire instructions arriving right before closing without prior notice
- Any change to previously confirmed wire instructions
- Requests to wire to an unfamiliar bank account
How to Protect Yourself
- NEVER wire funds based solely on email instructions
- Call your title company using a number you independently verify
- Confirm wire instructions by phone before sending
- Visit the title company in person if possible
- Use a cashier's check instead of wire if allowed
- Alert your bank's fraud department about the upcoming wire
- If you receive a last-minute email change to wire instructions, stop and call
What to Do If You Suspect You Have Been Scammed
- Call your bank immediately, request a wire recall
- Contact the FBI's IC3 at ic3.gov
- File a police report
- Contact your title company
Time is critical. Funds move fast, so every minute counts.
The Dollar Sign Problem
Wire fraud losses in real estate totaled over $1 billion in recent years. The average loss per incident is $50,000 to $100,000. This is not a rare crime; it happens daily across the country.
Ask Patrick about wire fraud protection
Get a straight answer on wire fraud, verification, and protecting your down payment.
