Fraud-Related Messages Before Closing: What Buyers and Professionals Should Verify

Unexpected messages about closing funds deserve independent verification. A survey of selected respondents would not establish that fraud is the baseline for every transaction; this article makes no population-wide prevalence claim.

How to Interpret Fraud Reporting

• Separate attempted contact from losses. A suspicious message is not the same as a confirmed fraud or financial loss.
• Use primary-source complaint data. Consult FBI IC3 annual reports for the reporting year and category definitions. Complaint totals are not the same as the probability that a particular transaction involves fraud.
• Check the population studied. Survey responses do not establish the experience of every homeowner or transaction.

Use these distinctions when reading fraud statistics. Practical precautions do not require claiming a particular probability of loss.

How the Attacks Are Evolving

Criminals may use look-alike email addresses or compromised accounts to impersonate a trusted party. A familiar thread, logo, or correct transaction detail does not authenticate a payment request.

The FBI's business email compromise guidance specifically describes fraudulent wiring instructions sent to a homebuyer. It recommends verification in person or by calling a trusted contact.

Why Reporting Categories Matter

IC3 reports describe complaints received, not every fraud incident. Category definitions and reporting years matter when comparing figures. A broad real estate complaint category should not be presented as a count of deed theft or as an individual buyer's risk.

These risks justify routine verification, not a prediction that every transaction will involve fraud. Treat unexpected changes to identities, contact details, or payment instructions as reasons to pause and confirm independently.

This Is Why We Built Home Fraud Defense

Our consumer tools are free. Our Home Fraud Defense mobile app is free. The Arizona Department of Real Estate has listed Home Fraud Defense in its consumer resources directory on azre.gov. Home Fraud Defense is also an Affiliate Member of ARELLO — the international association of real estate license law officials — so we can share our tools and join the conversations that matter at the regulator level.

The free consumer toolkit covers the same attack surface the data above describes:

• HFD Fraud Scan — paste any suspicious message, email, link, or wire instruction and get an AI-assisted red-flag pattern checklist.
• Property Visibility Check — review an available public-record snapshot and self-check guidance. Coverage varies; it does not authenticate ownership, calculate equity, or determine occupancy.
• Wire Transfer Safety Center — printable closing checklist plus the FBI IC3-aligned three-call verification workflow before you transfer a dollar.
• HFD Registry — search submitted reports, not a complete official history. A match needs investigation; no match does not prove safety.

The 60-Second Conversation Every Professional Should Be Having

Real estate professionals — agents, brokers, title officers, closing attorneys, and notaries — should share these tools at the start of every transaction. Not at the end. Not in a follow-up email after closing. At the start.

Explain verification early, then reinforce it before payment. If funds are sent to a suspected fraudster, contact the bank immediately and report to IC3. Recovery and insurance coverage depend on the facts; neither is guaranteed.

The script does not have to be complicated:

• "I want to give you three free tools to use during this transaction. They will take you about ten minutes."
• "If anyone — including me — sends you wire instructions, verify them by phone using the Wire Transfer Safety Center checklist before you send a dollar."
• "If you get a text, email, or call about this transaction that feels off, paste it into HFD Fraud Scan first."
• "I will also be running a fraud check on the property before we close."

A conversation supports awareness but does not prevent every fraud attempt. An AI scan can miss fraud or flag legitimate content; independently verify the recipient and instructions regardless of its result.

Where the Industry Goes from Here

Use agency guidance, your closing professional's procedures, and independent contact verification together. Linking a public resource does not imply that an agency endorses Home Fraud Defense or its tools.

If you are a homeowner, review official records when something is unfamiliar. If you are a professional, explain payment verification at the start of a transaction and document the precautions actually taken. No script guarantees a result.

John Rowan

Founder, Home Fraud Defense™ · Licensed Arizona REALTOR® · ADRE-approved fraud education school operator (School #S25-0019) · APAAC-certified instructor providing CLE to Arizona prosecutors · ARELLO Affiliate Member.

Sources: FBI business email compromise guidance and IC3 annual reports, linked above. Complaint categories, attempts, survey responses, and confirmed losses are different measures. No survey prevalence estimate is asserted here.

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