Real Estate Wire Fraud: A Closing Funds Safety Checklist

Real estate transactions are attractive targets for criminals because a single transfer can involve a large amount of money. A common scheme—business email compromise—uses a convincing message that appears to come from a title company, real estate agent, attorney, lender or client. The message directs the recipient to send closing funds to an account controlled by the criminal.

The safest mindset is simple: email alone is never enough to verify wiring instructions. Build verification into the transaction before funds are due.

Before you receive wiring instructions

1. Ask how instructions will be delivered. At the beginning of the closing process, confirm the title company’s normal secure delivery method.
2. Save a trusted phone number. Obtain it from the company’s official website, signed engagement documents or a known contact—not from a later email asking you to call.
3. Protect your email account. Use a unique password and multifactor authentication. Criminals may monitor an inbox for weeks before inserting themselves at the right moment.
4. Limit transaction details on public channels. Avoid posting closing dates, email addresses or financial details where they can help an attacker craft a believable message.

When instructions arrive

Pause before acting, even when the message looks familiar.

• Call the title or closing office using the trusted number you saved independently.
• Read back the receiving bank name, account name, routing number and account number.
• Confirm the exact amount and any reference information.
• Ask whether a small verification transfer is appropriate; do not send one unless the closing office and your bank approve the process.
• Keep written notes of whom you spoke with and when.

Never use the phone number in a suspicious email, attachment or text to perform the verification. That channel may also belong to the attacker.

Red flags in a closing message

A fraudulent message may use correct names, property details and signatures. Look beyond obvious spelling errors. Warning signs include:

• last-minute instructions to send funds to a different bank or account;
• pressure to act immediately or keep the change confidential;
• a sender address that differs by one character from a known address;
• an unexpected PDF, cloud document or login page;
• a request to bypass a secure portal;
• a bank account name that does not match the expected recipient; or
• an explanation that the usual contact cannot be reached by phone.

Treat any change in payment instructions as a new transaction that requires full, independent verification.

If wiring instructions change

Stop. Do not reply to the same email thread to ask whether the change is legitimate. Call your known closing contact directly. Legitimate businesses understand that a change involving funds deserves additional scrutiny.

If you cannot reach the correct person, wait. Missing a bank cutoff is inconvenient; sending money to a criminal can be devastating.

If you think money was sent to the wrong account

Speed matters. Take these steps immediately:

1. Call your bank’s fraud or wire department and request a wire recall or hold.
2. Notify the legitimate title or closing company using a verified phone number.
3. Contact local law enforcement and report the incident to the FBI’s Internet Crime Complaint Center.
4. Preserve emails, headers, attachments, text messages, phone numbers and transfer confirmations.
5. Change compromised passwords from a trusted device and enable multifactor authentication.

Do not wait for an email response before calling the bank. Financial institutions may have a narrow window to interrupt or recover a fraudulent transfer.

Safety checklist for buyers and sellers

Before sending or receiving closing funds, confirm that you can answer yes to each item:

• I know the title company’s official delivery process.
• I obtained the verification phone number independently.
• I called and read back every material banking detail.
• The recipient name matches what I expect.
• I did not rely on an emailed change without voice verification.
• My email account uses a unique password and multifactor authentication.
• I know whom to call at my bank if anything goes wrong.

Agents and lenders can help set expectations

Professionals should discuss wire safety early instead of waiting until a buyer receives final figures. Remind clients that criminals can imitate any party in the transaction. Avoid forwarding bank details through ordinary email, and direct clients back to the title company’s approved secure process.

MLJ Title clients should follow the specific funds instructions provided for their file and independently call the applicable MLJ Title office with any question. Never send funds based solely on website content or an unverified message.

Sources and further reading

• Consumer Financial Protection Bureau: Closing on your new home
• FBI Internet Crime Complaint Center