Cyber Security

How Wire Fraud Happens

Wire fraud is one of the fastest-growing threats in real estate transactions. Here’s how criminals typically steal funds during the homebuying process:

1. Email Account Compromised – A hacker gains access to the email account of someone involved in the transaction—this could be the buyer, seller, real estate agent, lender, or title company representative.
2. Fake Email Sent – The hacker sends a convincing email from the compromised account (or a similar-looking one), providing altered wiring or payment instructions.
3. Funds Sent to Fraudster – If the change isn’t questioned, the buyer or sender unknowingly wires money—often a down payment—to the criminal’s account.
4. Funds Disappear – By the time closing day arrives and the error is discovered, the money is often unrecoverable.

How to Protect Yourself from Wire Fraud

Rule 1: Be skeptical of emails with wiring instructions.
Criminals exploit the fast pace of real estate closings by inserting fraudulent payment details into emails that look legitimate. Always take a moment to double-check.

Rule 2: Verify instructions over the phone.
Before sending any funds, always call your title company or trusted point of contact using a verified phone number—not one provided in an email. Confirm the wiring details directly. Then, for added assurance, call your bank to verify as well.

Rule 3: Confirm after sending money.
Once funds are wired, call your title company immediately to confirm they received the payment. This quick step can help catch issues early.

Rule 4: Act fast if something feels wrong.
If you notice anything suspicious or realize you may have been misled, contact your bank, title company, and mortgage lender immediately. You should also consider contacting your local FBI field office or the FBI’s Internet Crime Complaint Center (IC3.gov) without delay.