You’ve saved for years. You found the house. Closing is days away, and an email lands in your inbox with “updated wiring instructions” for your down payment. It looks exactly like it came from your title company.
This is how wire fraud works, and it’s one of the most common types of fraud in real estate. It isn’t new. It just shows up in the news every so often. The good news: it’s preventable when you know what to watch for.
How the scam works
Criminals hack or imitate the email accounts of people involved in your transaction: agents, lenders, title companies, even attorneys. They watch the conversation, wait until right before closing, and then send fake wiring instructions. The logo, the signature, and the tone all look right.
Once money is wired to the wrong account, it’s often gone within hours. Recovering it is difficult and sometimes impossible.
The protocol I use with every buyer
- We talk about it on day one. Before you ever make an offer, I will remind you that wiring instructions will NEVER change by email. If they “change,” that is a red flag and you need to treat it as a scam until proven otherwise.
- Verify by phone, using a number you already trust. Call the title company using the number from their official website or your original paperwork. Never use the phone number in the email asking you to wire money.
- Confirm the details out loud. Read back the bank name, routing number, and account number before you send anything.
- Send a small test, or confirm receipt right away. Ask your title company to confirm the funds arrived as soon as you wire. Minutes matter if something goes wrong.
- Slow down when it feels urgent. Scammers create pressure: “Closing will be delayed if you don’t wire today.” Real professionals will always wait for you to verify.
Red flags to watch for
- An email saying the account or bank has changed at the last minute
- A slightly off email address (one letter different, or a different domain)
- Requests to keep the change quiet or to act immediately
- Instructions sent by text or a personal email account
- Any request to wire money to an individual instead of a company
If you have already hit send
Call your bank immediately and ask them to recall the wire. Then call your title company, your agent, and local law enforcement, and file a report with the FBI’s Internet Crime Complaint Center at ic3.gov. The faster you act, the better the chance of stopping the transfer.
Buying a home should feel exciting, not scary
Wire fraud is serious, but you don’t need to panic. A few simple habits keep your money safe. When you work with me, my team has safety protocols in place, so you can focus on picking out paint colors instead of worrying about your down payment.
Thinking about buying in the Lehigh Valley? Let’s talk about your plan.