Buying a home is one of the most exciting milestones for you and your family. It’s also a major investment—and unfortunately, that makes real estate transactions a prime target for scammers. In fact, according to the FBI’s Internet Crime Complaint Center (IC3), annual losses from wire fraud reached $446.1 million in 2022.
The good news? You can protect yourself by staying informed and working with trusted professionals, including a REALTOR®, a member of the National Association of REALTORS®.
What Is Wire Fraud?
Wire fraud is a type of scam that uses electronic communications to trick victims into sending money to a cybercriminal’s bank account.
How Does Real Estate Wire Fraud Work?
Scammers target anyone involved in a home purchase—buyers, sellers, attorneys, title companies, and real estate agents. Here’s how it often happens:
- Cybercriminals hack into email accounts connected to a transaction.
- They monitor progress quietly, waiting for the closing stage when large sums of money are about to be transferred.
- At the critical moment, they send a fake email that looks legitimate—often complete with company logos and nearly identical email addresses.
- The email includes fraudulent wiring instructions that redirect money into the scammer’s account.
Because these emails are so sophisticated, even careful buyers can be tricked.
Why Do Scammers Target Homebuyers?
Home purchases involve large financial transfers and lots of paperwork, much of it handled electronically. Buyers—especially first-time buyers—may be unfamiliar with the process, making them more vulnerable. Scammers take advantage of the confusion and excitement around closing.
How to Protect Yourself Against Wire Fraud
1. Be Informed from the Start
Talk with your REALTOR® early in the process about how money will be handled at each stage—earnest money, down payment, and closing costs.
2. Verify Wiring Instructions in Person
If possible, collect wiring instructions directly from the intended recipient. If you receive instructions by email, call using a known phone number (not one listed in the email) to confirm.
3. Watch for Last-Minute Changes
Legitimate title companies and lenders rarely change instructions suddenly. Be cautious of emails or voicemails with unexpected updates. Double-check email addresses carefully—fraudsters often change just a single letter or number.
4. Confirm Before and After You Wire Funds
Before sending money, verify details by phone with a trusted source. After the transfer, call again to confirm the funds were received.
5. Act Quickly If You Suspect Fraud
If you believe you’ve been targeted:
- Contact your bank immediately to try to stop the transfer.
- File a report with the FBI’s Internet Crime Complaint Center (IC3).
Stay Safe with Professional Guidance
Buying a home should be joyful—not stressful. The best way to protect yourself is to work with trusted professionals, including a REALTOR® who can help you navigate the process safely and confidently.
For more information, visit the Coalition to Stop Real Estate Wire Fraud.
