Real estate wire fraud is a scheme in which criminals intercept or impersonate closing instructions and convince a buyer to wire funds to a fraudulent account. It is one of the most common and costly scams in real estate, and the protection is simple: never send funds based solely on emailed instructions, and verify every wire by phone using a number you know is correct.

How the Scam Works

The criminal typically gains access to an email account involved in the transaction, monitors the deal, and then sends instructions that look like they come from the title company, the agent, or the attorney. The instructions say the wiring information has changed or direct funds to a new account. The buyer wires, and the money is gone, often within minutes.

  • Compromised email accounts are the most common entry point.
  • The instructions often arrive at the exact moment funds are expected.
  • The fraudulent account is emptied quickly, making recovery difficult.

Why Closing Funds Are Targeted

A real estate closing involves one of the largest wire transfers most people ever make, and the timing is predictable. Criminals know when the money is coming. Investors who close frequently, especially on multiple properties, are repeat targets.

  • Large, time-sensitive transfers.
  • Predictable closing timelines.
  • Multiple parties and email chains to intercept.

The Verification Rule

The single most important protection is independent verification. If you receive wiring instructions by email, call the closing team using a phone number you already know is correct, not a number from the email. Confirm the bank, the account, and the routing details. Never use a number or link contained in the suspicious message.

  • Verify by phone with a trusted, known number.
  • Confirm the exact bank and account details.
  • Be suspicious of any last-minute change to wiring instructions.

What Title Companies Do to Protect You

Title and escrow companies use secure portals, issue warnings, and confirm instructions through multiple channels. Many will never change wiring instructions by email. The closing team is a partner in protecting your funds, but the final verification is always yours.

  • Secure document portals for sharing instructions.
  • Written and verbal warnings about wire fraud.
  • Refusal to change instructions by email alone.

What to Do If You Sent a Wire to a Scammer

Act immediately. Call your bank and ask to recall or reverse the wire, contact the receiving bank, and file a report with the FBI's IC3 and local law enforcement. The sooner you act, the better the chance of recovery, though nothing is guaranteed.

  • Call your bank immediately and request a recall.
  • Contact the receiving bank if you can identify it.
  • File an IC3 complaint and a police report.
  • Notify your title company and agent.

The Bottom Line

Wire fraud is preventable in most cases. The criminals depend on urgency, secrecy, and email-only instructions. Slow down, verify by phone with a trusted number, and never let a deadline push you into sending funds without confirmation.

  • Read the full wire fraud series on the Viking blog.
  • Read the guide on seller impersonation, a related fraud pattern.
  • Contact the Viking team if you have questions about how funds move at closing.