You have found your home. Negotiated the price. Signed the contract. You are days away from closing when you receive an email from what appears to be your title company with updated wire transfer instructions. You send the money. The closing never happens. The wire is gone.
Real estate wire fraud occurs when a criminal uses impersonation or compromised communications to redirect closing funds. The FBI's business email compromise guidance describes a homebuyer receiving fraudulent wiring instructions from someone appearing to be a title company. Verify requests in person or through a trusted, independently obtained phone number before sending funds.
What Is Real Estate Wire Fraud?
Real estate wire fraud is a scam in which criminals intercept or impersonate the email communications of a title company, escrow officer, real estate agent, or attorney in order to redirect closing funds — down payments, earnest money, or proceeds — to accounts they control.
Unlike traditional fraud that requires forged documents or in-person deception, wire fraud exploits the ordinary email communications that flow through every real estate transaction. It targets the moment when buyers, sellers, or their representatives are under pressure to move quickly.
How Wire Redirect Scams Work — Step by Step
Step 1: The intercept. A criminal hacks or creates a look-alike email domain belonging to your title company, escrow firm, or real estate agent. Sometimes they compromise an actual email account. They monitor communications silently, waiting for the right moment.
Step 2: The false instruction. Days before closing — when wire transfers are expected — the criminal sends an email that appears to come from your title company or agent. The email contains updated wire instructions with a new routing and account number.
Step 3: The urgency play. The message often includes language designed to prevent you from calling to verify: "Due to banking security protocols, please use the attached instructions only. Do not call as our phone lines are being upgraded."
Step 4: The transfer. The victim sends the wire — often a down payment of tens or hundreds of thousands of dollars — to the criminal's account.
Step 5: Movement of funds. Criminals may move funds between accounts or convert them to cryptocurrency. Contact your bank immediately to request a recall or freeze and report to IC3 and law enforcement. Recovery is not guaranteed; there is no deadline after which reporting becomes pointless.
Red Flags to Watch For
- Any email requesting a change to previously provided wire instructions — especially close to closing
- Urgency language discouraging you from calling to verify
- Slight variations in the email address (e.g., titlecompanyinc.com vs. titlecompany-inc.com)
- Unexpected attachments or changed instructions — PDF format alone proves neither fraud nor authenticity
- An unexpected bank destination — geography alone does not authenticate the account holder
- A request to send wire confirmation to a different email address
How to Verify Wire Instructions Before Sending
Always call to verify — using a number you look up yourself. Never use the phone number in a suspicious email. Look up your title company's number from their official website or a previous communication you initiated. Call before wiring any amount.
Verify exact account and routing details. Confirm with a trusted contact using an independently obtained number. A valid routing number identifies a bank, not the intended recipient.
Verify before authorizing payment. Ask your bank about its procedures; do not assume a wire can be delayed or recalled after authorization.
Establish verification protocols at the start of a transaction. Agree with your agent and title company on how wire instructions will be delivered — and that any changes will be verified by phone.
Scan any suspicious message before acting. If you receive a suspicious email, wire instruction, or closing document that doesn't feel right, use HFD Fraud Scan's free AI scanner to analyze it for fraud patterns before responding.
What to Do If You've Already Wired Funds
Contact your bank immediately to request a recall or freeze and ask it to contact the receiving institution. Report to IC3 and local law enforcement. Preserve records. The applicable payment network, recall options, and insurance coverage vary; recovery is not guaranteed.