Purchasing or selling a home is one of the largest financial transactions most people will ever make. During the closing process, you’ll likely transfer a significant amount of money, making real estate transactions an attractive target for scammers.
Wire fraud has become an increasing concern across the real estate industry, but understanding how these scams work and knowing what warning signs to watch for can help protect your investment.
What Is Real Estate Wire Fraud?
Wire fraud occurs when a scammer impersonates someone involved in your real estate transaction, such as your title company, real estate agent, lender, or attorney. Typically, the scammer gains access to or closely monitors email communications between the parties involved. As closing approaches, they send an email that appears legitimate, often using company logos, transaction details, and email addresses that look nearly identical to the real ones.
The email usually includes “updated” wiring instructions or claims there has been a last-minute change. Believing the request is legitimate, the buyer wires their funds to the fraudulent account instead of the correct one.
Unfortunately, once a wire transfer is completed, recovering those funds can be extremely difficult.
Common Warning Signs
While wire fraud scams have become increasingly sophisticated, there are several warning signs that should never be ignored.
Be cautious if you receive:
- Last-minute changes to wiring instructions
- Requests to wire funds to a different account than originally provided
- Emails creating a sense of urgency or pressuring you to act immediately
- Messages asking you not to verify the information by phone
- Emails with slight misspellings in the sender’s address or a domain name that looks similar, but isn’t quite right
If something feels unusual, trust your instincts and take the time to verify the information before sending any money.
How to Protect Yourself During Closing
Fortunately, there are several simple steps you can take to reduce your risk of wire fraud.
Verify wiring instructions by phone.
Always confirm wiring instructions by calling your title company or real estate professional using a trusted phone number you already have. Never rely solely on an email or a phone number provided in the message itself.
Be cautious about last-minute changes.
Established title companies rarely change wiring instructions just before closing. If you receive updated instructions unexpectedly, stop and verify them before taking any action.
Don’t send sensitive financial information through email.
Avoid sending bank account numbers, passwords, or other confidential financial information through standard email whenever possible.
Confirm your wire transfer was received.
After sending your wire transfer, contact your title company to confirm the funds arrived safely and were received by the intended recipient.
If something doesn’t seem right, ask.
It’s always better to pause and ask questions than to rush through the process. A quick phone call could prevent a costly mistake.
Why Working with Trusted Professionals Matters
Working with experienced local real estate professionals can help protect you from many types of real estate scams, from wire fraud to increasingly sophisticated AI scams. An experienced team knows what warning signs to watch for, follows secure communication practices, and can help you verify important information before any funds are transferred.
At Ohio Real Title, wire fraud prevention begins well before closing day. Buyers receive secure wiring instructions through our closing platform, along with educational resources that explain how wire fraud works and what to watch for. Before funds are ever sent, we ask buyers to review and acknowledge important wire safety reminders, including Ohio’s good funds requirements, so they know exactly what to expect throughout the transaction.
Our team also takes additional steps behind the scenes to help keep your transaction secure. We verify identities, monitor transactions for potential fraud risks, and use secure methods to collect and share sensitive information throughout the closing process. While no system can eliminate risk entirely, these safeguards help provide another layer of protection for buyers and sellers.
If you ever receive unexpected wiring instructions, a request to change payment information, or any communication that seems suspicious, contact your Ohio Real Title team before taking action. We’re always happy to help you verify the information and ensure your transaction stays on track.