Real Estate Wire Fraud: Stop. Verify. Then Wire.

Buying a home may involve sending the largest wire transfer you've ever made.

Unfortunately, criminals know that too.

Real estate wire fraud has become extraordinarily sophisticated. Criminals may impersonate title companies, escrow officers, lenders, real estate agents, attorneys or financial institutions.

The email may look right.

The logo may be right.

The signature may be right.

The caller ID may even display the name of a company you trust.

None of those things prove you're communicating with the person you think you are.

Never Verify a Suspicious Message Using Information Inside the Message

This is one of the most important rules in preventing wire fraud.

If an email tells you to wire money somewhere, do not use the phone number in that email to verify the instructions.

Why?

Because if the email is fraudulent, the criminal can simply provide their own telephone number.

Instead, independently find a trusted number.

• Go directly to the company's known website. Check the spelling of the domain carefully.
• Use contact information you previously received and independently verified.
• Or call a trusted professional involved in your transaction using a number you already know.

Then verbally confirm the wiring instructions.

Look at Every Letter

Fraudulent domains can be incredibly difficult to notice.

A criminal doesn't necessarily create an obviously ridiculous email address. They may change, remove or add one character.

At a glance, it looks legitimate.

That's exactly the point.

Before relying on a website or email domain, slow down and read the entire address.

Caller ID Isn't Proof Either

Suppose your phone rings and the caller ID displays your bank's name.

Surely that's safe?

Unfortunately, no.

Caller ID can be spoofed.

If someone claiming to represent your bank, title company or another financial institution unexpectedly calls and asks for passwords, authentication codes, security tokens or sensitive banking information, hang up.

Then independently call the institution using its verified telephone number.

Never Give Someone Your Authentication Code

A one-time security code or banking token isn't something an unexpected caller needs you to read back so they can "check your account."

That code may be exactly what a criminal needs to access it.

Think of an authentication code as a temporary key.

Don't hand someone the key simply because they claim to work for the bank.

Be Extremely Suspicious of Changed Wire Instructions

Here's another enormous red flag:

"We've changed banks. Please use these new wire instructions."

Stop.

Title and escrow companies do not casually move their banking relationships in the middle of transactions.

Changing banks for an escrow operation is not like changing where you buy groceries.

If you receive different wiring instructions, particularly at the last minute, do not send the money until you've independently spoken with the title or escrow company and verified them.

Be Suspicious of Sudden Changes to Closing, Too

Another warning sign is unexpected urgency.

• "Closing has been moved up."
• "We need your funds today."
• "You have to send this immediately."
• "Your closing will be delayed if you don't wire now."

A change in timing doesn't mean something is automatically fraudulent.

But it absolutely means you should verify what's happening independently before sending money.

Criminals Use Urgency Against You

Urgency gets people to stop thinking.

Real estate transactions already involve deadlines, unfamiliar terminology and large amounts of money. Criminals know that.

A legitimate closing professional would much rather have you take another five minutes to verify instructions than have your life savings wired to a criminal.

Criminals Look for Vulnerability

Scammers deliberately look for circumstances they can exploit.

That can include people who aren't comfortable with technology, older consumers, people navigating an unfamiliar closing process, and people communicating in a language that isn't their first.

Tiny spelling differences, strange grammar and altered website addresses can be harder to recognize when someone is already trying to understand an unfamiliar transaction.

There is no embarrassment in saying:

"I'm not sending anything until I've independently verified this."

In fact, that's exactly what we want you to do.

Viking's Rule: STOP. VERIFY. THEN WIRE.

Before sending money connected with a real estate transaction:

And if anything changes?

Start the verification process over again.

Real estate wire fraud can happen incredibly quickly.

Prevention can sometimes be as simple as making one independent phone call.

Make the call.

If You Believe You've Already Sent Money to a Fraudulent Account

Act immediately. See our companion article:

“I Sent a Wire to a Scammer. What Do I Do Right Now?”

This article provides general educational information and is not legal, financial or cybersecurity advice.