Buying or selling a home involves more than signing papers, it also involves moving large sums of money. Deposits, down payments, loan funds, and seller proceeds all change hands during a real estate transaction, and unfortunately, scammers know this too. Wire fraud has become one of the most serious and devastating threats in real estate today. Criminals use email hacks and phishing tactics to impersonate trusted parties in the transaction. They send fake wiring instructions that look completely legitimate, and if you follow them, your money ends up in the wrong hands. Once it’s gone, it’s nearly impossible to recover.
Here’s the no-BS truth about how wire fraud works and how a great agent keeps both buyers and sellers protected.
How Wire Fraud Works
Real estate scams typically begin with email compromise. Hackers gain access to the inbox of an agent, title company, lender, or even the client themselves. Once inside, they monitor the communication trail sometimes for weeks waiting for the right moment. Just before money is due, they send a perfectly timed email with “updated” wiring instructions. The email might look exactly like the title company’s branding and language, and it usually sounds urgent. If the recipient wires the money without verifying, the funds are gone.
Why Buyers Are at Risk
Buyers are especially vulnerable because they’re often wiring large amounts of money, typically earnest money or full down payments under tight deadlines. Scammers take advantage of this pressure and timing. The moment you receive an unexpected update to wiring instructions, you’re at risk of losing tens or hundreds of thousands of dollars. A sharp agent will warn you ahead of time, advise you to verify all wiring instructions directly with the title company by phone, and walk you through the safe way to transfer funds.
Why Sellers Are at Risk
It’s not just buyers. Sellers can also be targeted, especially when it’s time for the title company to wire out the proceeds. Criminals may impersonate the seller via email and submit fraudulent bank details, tricking the title company into wiring the funds to a fake account. A seasoned listing agent will ensure you confirm your wiring instructions directly with the title officer by phone, not by email or online form to make sure your hard-earned money goes where it’s supposed to.
Red Flags to Watch For
Knowing what to watch for can make all the difference. Be cautious of emails that contain new or urgent wiring instructions, sudden changes to account numbers or financial institutions, poor grammar or unusual formatting, or requests to “confirm” personal or banking details by replying to the email. A great agent knows how to spot these red flags quickly and will guide you on how to double-check everything before money moves.
The No-BS Takeaway
Wire fraud is one of the only risks in a real estate deal that can cause instant, irreversible financial loss, but it’s also one of the most preventable.
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Never trust wiring instructions sent by email alone
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Always confirm instructions by phone with your title officer or closing attorney
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Never send money without double-checking with a trusted professional
Bottom line: With awareness and the right agent in your corner, your money stays safe, whether you’re buying or selling.
