Real estate wire fraud: the warning signs and what to do.

How the scam usually works

A criminal gains access to someone's email (an agent, a buyer, a title officer) or creates a lookalike address. They watch the conversation quietly until closing approaches. Then they send a message that looks legitimate, often with the right names, the right property and the right timing, saying the wiring instructions have changed. The buyer wires the closing funds to the criminal's account. By the time anyone notices, the money may be gone.

Red flags in an email

• Changed wiring instructions, especially late in the process. Legitimate settlement companies rarely change instructions by email.
• Urgency: "wire today or you'll lose the house", "the bank needs this in the next hour".
• A slightly different email address: one letter off, a different domain, or a reply-to that doesn't match.
• Requests to keep it confidential or not to call.
• Unusual tone or grammar from someone you've been emailing all along.
• Requests for bank details, account numbers or passwords by email.

The one rule: verify by phone

Before sending any wire, the buyer should call the title or settlement company using a phone number they already know (from the company's official website, the contract, or a business card received in person), never a number from the email with the instructions. Confirm the account details out loud. If anything changes, verify again the same way. This single habit defeats most wire fraud attempts.

What agents can do

• Warn clients early, at contract and again before closing, that you and the title company will never send changed wiring instructions by email.
• Use strong, unique passwords and two-factor authentication on your email.
• Be careful with links and attachments, especially "shared document" messages.
• Keep sensitive details out of email where you can, and mask account numbers if you must reference them.
• Flag any email in a deal thread that mentions wiring or bank details, and pick up the phone.

The KONAH AI Transaction Coordinator flags any deal email about wiring, bank details or changed payment instructions as "Possible wire fraud: verify by phone", and masks account and routing numbers before anything is stored.

What buyers and sellers can do

• Expect to receive wiring instructions from the settlement company through a secure method they explain at the start.
• Call to verify before every wire, using a known number.
• Confirm receipt with the settlement company right after wiring.
• Be suspicious of any last-minute change, no matter how official it looks.
• Sellers: verify payoff and proceeds instructions the same way.

If it happens: act immediately

1. Call your bank right away and ask them to contact the receiving bank to try to recall or freeze the wire. Speed matters.
2. Call the title or settlement company using a known number.
3. Report it to the FBI's Internet Crime Complaint Center (IC3) and local law enforcement.
4. Notify everyone in the transaction so no one else acts on fraudulent messages.
5. Secure email accounts: change passwords and turn on two-factor authentication.

Why real estate is a target

Criminals go where the money is predictable. In a home purchase, everyone knows a large wire will happen, roughly when it will happen, and who the parties are. Much of that information is easy to find: listings show addresses, public records show owners, and social media posts announce "under contract" and closing dates. Combine that with busy people exchanging dozens of emails, and a single convincing message at the right moment can redirect a buyer's savings. That's why the warning signs matter even for experienced agents.

Protecting your email

Many wire fraud schemes start with a compromised email account. Basic security goes a long way:

• Turn on two-factor authentication for every email account you use for business.
• Use a password manager and unique passwords.
• Be cautious with login pages reached from email links, especially "view document" messages.
• Check your email settings periodically for forwarding rules or filters you didn't create; attackers sometimes add these to hide replies.
• Keep your devices and software updated.

Talking to clients without scaring them

Wire fraud warnings work best when they're calm and routine rather than alarming. Mention it at the start of the transaction as a normal part of the process: "Here's one rule we always follow: nobody on this deal will ever change wiring instructions by email. If you get one, call me or the title company using the number on this sheet before you do anything." Repeat it a week before closing. Give clients a printed sheet with verified phone numbers they can rely on.

Sellers and payoffs are targets too

Buyers aren't the only targets. Fraudsters may try to redirect a seller's proceeds, or send fake payoff instructions for an existing mortgage. Sellers should confirm their proceeds instructions directly with the settlement company using a known number, and any change to payoff details should be verified with the lender. The same rule applies to everyone: verify by phone before money moves.

A pre-closing checklist

1. Remind the buyer, in writing and by phone, that wiring instructions will never change by email.
2. Confirm the settlement company's phone number from an independent source.
3. Have the buyer call to verify instructions before wiring.
4. Confirm receipt of funds with the settlement company the same day.
5. Watch the deal's email thread for any message about banks or payment changes, and pick up the phone if one appears.

Other scams to watch for

Wire fraud isn't the only scheme around real estate. Watch for seller impersonation, where someone pretends to own a vacant lot or unencumbered property and tries to sell it, often pushing for a quick, remote closing. Rental scams copy real listing photos to collect deposits for homes that aren't available. Agents can help by verifying identity carefully on unusual listings, watching for remote-only sellers who resist verification, and reporting copied listings when clients spot them.

Build it into your process

Wire fraud prevention works best as a routine, not a reaction. Put the warning in your buyer consultation materials, your contract-to-close email, and the week-of-closing checklist. Many title companies include their own warnings; reinforce them. Clients remember the agent who kept them safe.