What Is Wire Fraud?
Wire Fraud: A scam where criminals send fake wiring instructions to steal a buyer's closing funds.
Real estate wire fraud happens when criminals impersonate a title company, escrow agent, lender or real estate agent and send fake wiring instructions. Buyers wire their earnest money or cash to close to the criminal's account. It's one of the most costly crimes in real estate.
Warning signs
- An email saying wiring instructions have changed
- Pressure to send money quickly
- Slight differences in an email address or domain
- Requests to keep the change confidential
How to protect yourself
- Get wiring instructions in person or through a secure portal at the start of escrow.
- Before every wire, call the escrow company at a number you found independently, not one in the email, and confirm the account details.
- Never act on changed instructions without that call.
- Confirm with escrow that your funds arrived.
If it happens
Call your bank immediately and ask for a wire recall, call the escrow company, and file a report with the FBI's Internet Crime Complaint Center (IC3). The first hours matter most.