Real Estate Wire Scams - Recent Trends

Authorities are seeing more real estate wire scams, often built around a compromised email during a home's closing. . Because these deals can involve six-figure sums, they’re especially lucrative for cybercriminals. Typically, the scammer spoofs a sender address to look like the real estate or closing agent and instructs the buyer to wire funds to a fraudulent account. Beyond the stolen money, they frequently walk away with personal information they can use for further fraud.

• Confirm every wiring detail by phone, using a trusted number for your mortgage consultant or title representative from an official source.
• Treat any eleventh-hour change as suspicious and verify it directly with the people involved
• Don’t rely on phone numbers or contacts pulled from a questionable email. Go back to sources you already trust.

How These Scams Work

Scammers hack or spoof the email accounts of real estate professionals. They send messages announcing last-minute changes to the wiring instructions, directing you to send closing costs to a new account, one the scammer controls.

• Watch for wiring instructions that change unexpectedly near the closing date.
• Be wary of pressure to send funds immediately or risk derailing the deal.
• Question emails listing phone numbers that don’t match the ones you already have.

If You’ve Been Victimized

Acting quickly gives you the best chance of limiting the damage, though recovery is never guaranteed.

• Contact your bank right away to request a wire recall. Keep in mind that reversing a transfer can be difficult and isn’t always possible.
• Report the incident to the Federal Trade Commission (FTC) and the FBI’s Internet Crime Complaint Center (IC3).
• Watch your accounts for unauthorized activity and follow up with us on the status of the recall.