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Real Estate Wire Fraud Is on the Rise: Don’t Let Scammers Steal Your Closing Funds

Written by Bill Rieger | May 27, 2025 6:50:27 PM

Imagine saving for years. Sacrificing luxuries. Skipping vacations. Then finally—you’re ready. You’ve found the perfect home, signed the contract, and scheduled closing.


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And just like that, it’s gone.

$1.5 billion. That’s how much the FBI estimates was lost to real estate wire fraud scams last year alone. It’s not a typo. That’s billion—with a B.

Real estate wire fraud is fast becoming the financial equivalent of quicksand. It looks solid, safe. But the moment you step in—the moment you click that email or send that wire—you’re stuck. And the more you struggle to get it back, the deeper you sink.

This blog is your guide to staying on solid ground. I’ll break down what real estate wire fraud looks like in plain English, how it happens, and what you can do—today—to protect your hard-earned savings.

No fluff. No fear tactics. Just facts, examples, and real-world tips that can save you from becoming a statistic.

 

What Exactly Is Real Estate Wire Fraud?

Real estate wire fraud is a scam that happens when criminals trick homebuyers into wiring their closing funds—often tens or hundreds of thousands of dollars—to a fake account. They pretend to be someone you trust: your real estate agent, the title company, or your attorney. Their email looks real. Their phone number might even look real. But it’s not. It’s a well-crafted trap.

The moment you send the wire, the money is gone. Poof. Overseas. Untraceable. Almost impossible to recover.

 

The Anatomy of a Real Estate Wire Fraud Scam

Let’s break it down:

1. The Setup

Scammers gain access to someone’s email account—often through phishing—or they create a lookalike address that’s almost identical to the real one. One letter off, and it’s game over.

2. The Timing

They monitor conversations. Wait for just the right moment: usually a few days before closing.

3. The Hook

You get an urgent email. It looks like it’s from your title company or realtor: “Hey, just wanted to confirm the wiring instructions for closing. Please send funds to this account by 3 PM today.”

4. The Action

You send the money, thinking everything is fine.

5. The Fallout

A day later, you find out no one received the funds. And the scammers? Long gone.

 

 

How to Spot a Real Estate Wire Fraud Scam Before It Happens

Here’s what to watch for:

✅ Last-Minute Changes
If you receive an email with new wiring instructions, stop. This is the biggest red flag. Scammers often wait until the last minute to strike.

✅ Urgency or Pressure
Any email that says “You must act today!” or “Funds must be wired immediately!” should set off alarm bells.

✅ Email Address Red Flags
Look closely. Is there an extra letter or number? Does the domain look slightly off (like @tit1ecompany.com instead of @titlecompany.com)?

✅ Grammar and Tone
Many scam emails have small errors—weird phrasing, odd formatting, or unusual requests.

✅ Requests for Unusual Payment Methods
If someone asks for payment via gift cards, cryptocurrency, or cash apps, that’s a huge warning sign.

 

Actionable Steps to Protect Your Closing Funds


1. Verify, Verify, Verify

Always confirm wiring instructions by calling a known phone number for your title company or agent. Never use contact information from the email itself.

2. Establish a Safe Process

At the beginning of your transaction, agree with your team (realtor, title agent, lender) on how closing details will be shared. Stick to that plan.

3. Use a Strong Email Setup

Enable multi-factor authentication on your email accounts. Scammers often gain access through weak passwords or lack of security.

4. Limit Email Use for Sensitive Data

Discuss critical details like wiring instructions over the phone or in person when possible.

5. Get Educated

Read resources from the FBI’s IC3 and your local real estate association. Awareness is your best defense.

6. Work with Reputable Professionals

Choose a title company and realtor with strong cybersecurity practices. Ask how they protect client data.

 

What to Do If You Suspect Wire Fraud

Act fast. Time is critical.

  • Call your bank immediately and ask them to initiate a recall or freeze.
  • Report the fraud to the FBI
  • Contact your local police.
  • Notify your real estate agent, title company, and anyone else involved.

The FBI’s Recovery Asset Team can sometimes freeze funds if they act quickly enough. But the clock starts ticking the moment you hit send.

 

Don’t Let a Scam Steal Your Dream

Buying a home is one of the biggest financial moves you’ll ever make. Don’t let a scammer turn that dream into a nightmare.

Stay vigilant. Slow down. Double-check everything.

The extra five minutes you take to verify wiring instructions could save you from losing your life savings.

Protect yourself. Protect your family. And if you ever have questions, our team at Liberty Savings Bank is here to help you navigate safely.