Before You Wire: How to Protect Your Closing Funds from Real Estate Fraud

Buying a home is exciting. By the time closing day arrives, buyers have usually spent weeks—or months—touring homes, negotiating, completing inspections, securing financing, and preparing for the big day.

Unfortunately, that final stretch is also when buyers can become a target for real estate wire fraud.

October is Cybersecurity Awareness Month, making it a good time to highlight one of the most important precautions anyone involved in a real estate transaction can take: always verify before sending money.

Real Estate Fraud Is a Growing Concern

According to the FBI’s 2025 Internet Crime Report, reported losses categorized as real estate fraud reached more than $275 million in 2025, compared with approximately $174 million in 2024.

Business Email Compromise, or BEC—a broader category of fraud that can include criminals impersonating trusted businesses and professionals—accounted for more than $3 billion in reported losses in 2025.

Real estate transactions can be particularly attractive targets because they involve large transfers of money and communication between multiple parties, including buyers, sellers, real estate agents, lenders, attorneys, and title professionals.

A fraudulent email does not always look suspicious. In some cases, criminals gain access to or imitate a legitimate email account, monitor an ongoing transaction, and then contact a buyer at exactly the right moment with convincing—but fraudulent—payment instructions.

Watch for Last-Minute Changes

One of the biggest warning signs is an unexpected change to wiring instructions.

The Consumer Financial Protection Bureau warns that scammers may pose as a real estate or settlement professional and send buyers instructions directing their closing funds to a fraudulent account.

The message might look legitimate. It may reference the property, closing date, people involved in the transaction, or other details that make the request seem credible.

That is why buyers should never assume an email is legitimate simply because it contains accurate information.

If you receive new or changed wiring instructions—especially close to your settlement date—stop and independently verify them before sending anything.

5 Ways to Help Protect Your Closing Funds

1. Confirm instructions using a trusted phone number.

Before sending a wire, speak directly with your title or settlement professional using a phone number you already know and trust.

Do not rely solely on the phone number included in an unexpected email requesting money.

2. Be suspicious of sudden changes.

A last-minute change in an account number, financial institution, payment method, or wiring procedure should always be independently confirmed.

Even if the email looks familiar, take the extra few minutes to verify it.

3. Don’t send sensitive financial information through ordinary email.

The CFPB advises consumers not to email sensitive financial information. When exchanging documents or financial details, follow the secure procedures provided by the professionals handling your transaction.

4. Slow down when a message creates urgency.

Fraud attempts often rely on urgency: Send this immediately. The account changed. We need the funds right away.

Closing day is already busy, which can make an urgent message feel believable.

Instead of reacting quickly, pause and verify.

A legitimate professional will understand why you want to confirm instructions involving a significant amount of money.

5. Know who you’re working with before closing day.

Save the contact information for your real estate agent, lender, and title or settlement representative early in the transaction.

The CFPB specifically recommends identifying trusted contacts in advance so you know exactly whom to call if you receive a suspicious message.

What If You Think You’ve Sent Money to the Wrong Account?

Act immediately.

The FBI advises victims of fraudulent transfers to contact their financial institution as quickly as possible and request that the transfer be recalled or stopped.

You should also report suspected internet-enabled fraud to the FBI’s Internet Crime Complaint Center (IC3).

The faster a fraudulent transfer is reported, the better the opportunity may be to intervene.

A Simple Rule: Stop, Call, Confirm

Technology has made real estate transactions faster and more convenient, but some of the best protection still comes from something remarkably simple: talking to the people you trust.

If anything about your closing instructions feels unfamiliar, unexpected, or different from what you previously discussed, don’t be afraid to ask questions.

At CoreTitle, we believe a great closing experience should feel exciting—not stressful. Taking a moment to verify important information can help protect your transaction and keep the focus where it belongs: getting you safely to the closing table.

Before you wire, stop, call, and confirm.

Sources: Federal Bureau of Investigation Internet Crime Complaint Center, 2025 IC3 Annual Report; Consumer Financial Protection Bureau, “Beware of Mortgage Closing Scams”; Cybersecurity and Infrastructure Security Agency, Cybersecurity Awareness Month resources.