Wire Fraud
Wire fraud is a cybercrime in which criminals intercept or impersonate communications during a real estate transaction to redirect closing funds to a fraudulent account.
Scammers typically hack or spoof email accounts of real estate agents, title companies, or lenders and send the buyer fake wiring instructions that appear legitimate. Once funds are wired to the wrong account, they are often unrecoverable.
Wire fraud is not a rare occurrence — it is one of the fastest-growing crimes in real estate. The FBI reports hundreds of millions in losses each year. It can happen to anyone, regardless of the transaction size or location. A Closing Protection Letter provides additional safeguards during the closing process.
Why This Matters: Never wire funds based solely on an email. Always verify wiring instructions by calling a known, trusted phone number — not one provided in the email itself. One phone call can prevent the loss of your entire closing funds.
Common question
How does wire fraud work in real estate?
Criminals hack or spoof email and send fake wiring instructions. If you wire to the wrong account, the funds are often gone. Always verify instructions by calling a number you already trust — not one from the email.
How can I protect myself from wire fraud?
Never wire based only on email. Call your title company or lender using a phone number you looked up yourself (website, prior documents) and confirm the wiring instructions before sending any money.
Related Topics
Related Mortgage Terms
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