How to Stop Wire Fraud in Real Estate Transactions

A home purchase is often the largest payment a person ever makes. Criminals know that. They also know exactly when it happens: in the final days before closing, when buyers are excited, stressed, and waiting for instructions.

Real estate wire fraud happens when someone tricks a buyer, agent, or title company into sending closing funds to a criminal's account. Once the money leaves, getting it back is difficult and sometimes impossible. Prevention has to happen before the wire, not after.

This guide walks through the steps brokerages, agents, and their clients can take to stop wire fraud before it starts.

How Real Estate Wire Fraud Usually Works

The pattern is surprisingly consistent:

1. An attacker gains access to an email account belonging to an agent, a transaction coordinator, a title officer, or sometimes the buyer.
2. They read the emails quietly and learn the deal's timeline, names, and amounts.
3. Just before closing, they send a message with "updated" wiring instructions. It often comes from the real account or from an address that looks nearly identical.
4. The buyer wires the down payment to the fraudulent account.

Because the attacker uses real details from the transaction, the message looks completely legitimate.

Step 1: Set Expectations at the First Meeting

The best time to talk about wire fraud is long before closing. At the start of the relationship, tell buyers clearly:

• "We will never send you wiring instructions by email alone."
• "We will never change wiring instructions during the transaction."
• "Before you send any money, call the title company at a number you find independently."

Put this in writing too. Many brokerages include a wire fraud warning in their listing agreements, buyer packets, and email signatures. Repetition helps the message stick when the buyer is under pressure.

Step 2: Verify by Phone Using a Known Number

This is the single most important step. Anyone sending money should confirm instructions by calling a phone number they already have from a trusted source, such as the title company's official website or a contract signed early in the deal.

Never use the phone number listed in the email that contains the wiring instructions. If the email is fake, the phone number will go straight to the criminal.

Step 3: Treat Any Change as a Red Flag

Legitimate title companies and closing attorneys rarely change their bank accounts mid-transaction. If a buyer receives new instructions, the default answer should be "stop and verify," no matter how official or urgent the message seems.

Step 4: Secure the Email Accounts Involved

Many wire fraud schemes start with a single compromised mailbox. Brokerages can reduce that risk by:

• Requiring multifactor authentication on every agent and staff email account.
• Turning on alerts for unusual sign-ins and new forwarding rules.
• Avoiding personal email accounts for transaction communication.
• Training agents to recognize fake login pages and suspicious attachments.

Out-of-office messages also tell criminals when an agent is unreachable. Here's why your vacation auto-reply might be a hacker's favorite email.

Step 5: Use a Secure Way to Share Instructions

Many title companies now deliver wiring instructions through secure portals or verification platforms instead of email. Agents can help by encouraging clients to use those tools and by never forwarding instructions themselves.

Step 6: Confirm Receipt After the Wire

Ask buyers to call the title company shortly after sending funds to confirm the money arrived. If something went wrong, finding out within hours rather than days greatly improves the chance of recovery.

What to Do If Fraud Happens

If a buyer thinks they wired money to the wrong account, every minute counts:

1. Call the sending bank immediately and request a wire recall.
2. File a complaint with the FBI's Internet Crime Complaint Center at ic3.gov. The FBI works with banks to try to freeze fraudulent transfers, and speed improves the odds.
3. Contact local law enforcement and the title company.
4. Preserve all emails involved in the transaction.
5. Review the brokerage's email accounts to determine whether an agent's mailbox was the source.

A Brokerage-Wide Wire Fraud Checklist

• Written wire fraud warning given to every buyer at the start.
• Verification-by-phone rule included in agent training.
• Multifactor authentication on all agent and staff email.
• Alerts for suspicious sign-ins and mailbox forwarding rules.
• No wiring instructions forwarded by agents.
• A documented response plan if fraud is suspected.

Protecting Clients Protects Your Reputation

A wire fraud loss is devastating for the buyer. It can also damage an agent's reputation and a brokerage's relationships for years. The good news is that a few consistent habits and solid email security stop most attempts.

For a wider look at how payment scams work, read about the scam that cost one company $60 million. Maise Technology helps real estate offices strengthen email security and cybersecurity protections so agents can focus on closing deals.

Ready to review how your brokerage handles transaction email? Schedule A 15 Minute Discovery Call.