Real Estate Wire Fraud: How One Fake Payment Instruction Can Steal Your Money

Real estate wire fraud is one of the highest-stakes scams because the losses can be enormous. In some cases, a buyer can lose a house down payment or closing funds, or a seller can lose the proceeds from a home sale, after one fraudulent wire transfer.

Often, the scam looks like a normal email from someone already involved in the transaction, such as a real estate agent, title company, closing attorney, mortgage lender, or settlement company. That's what makes it so dangerous. It’s usually just one believable message at the wrong time.

The FBI’s Internet Crime Complaint Center reported more than $3 billion in Business Email Compromise losses in 2025, and real estate-related complaints accounted for more than $275 million in reported losses. Those numbers only reflect reported complaints, so the real impact may be higher.

What real estate wire fraud is

Real estate wire fraud happens when a scammer tricks someone into sending real estate money to the wrong bank account. For a buyer, that money may be the down payment, closing costs, or other funds needed to complete the purchase. For a seller, that money may be the proceeds from the sale of the home.

The scam often happens near closing, when everyone is busy, the paperwork is moving quickly, and large payments are expected. A fake email may say that wiring instructions have changed or that the buyer or seller needs to use a different account.

The message may look real. It may use familiar names. It may mention the property, the closing date, or the transaction amount. But the account belongs to the scammer.

How buyers are targeted

Buyers are common targets because they're often expected to send money before or at closing. The scam may start with an email that appears to come from the title company, closing attorney, settlement agent, mortgage lender, or real estate agent. The message may include wiring instructions or say that previous instructions have changed.

The message may say something like:

• “Please use the updated wiring instructions attached.”

• “Do not use the earlier account. Funds must be sent to this account instead.”

• “We need the wire today to avoid delaying closing.”

That kind of message can feel believable because buyers are already expecting payment instructions. They may also be nervous about delaying the closing, losing the house, or creating problems at the last minute.

That pressure is exactly what the scammer wants. The CFPB warns that scammers may pose as a real estate or settlement agent and suggest last-minute changes to wiring instructions so they can steal closing funds.

How sellers are targeted

Sellers can be targeted too. A seller may be expecting the proceeds from the sale to be wired after closing. A scammer may try to redirect those proceeds by impersonating the seller, the seller’s attorney, the title company, or another person involved in the transaction.

For example, a scammer may send a fake message to the title company, closing attorney, or settlement company pretending to be the seller. The message may say:

• “Please send my proceeds to this updated account.”

• “My bank information has changed.”

• “Use these wire instructions for my seller proceeds.”

If the closing party accepts the fake instructions, the seller’s proceeds may be wired to the scammer instead of the seller. This is why sellers should treat the carefully the wire instructions for receiving their proceeds. The risk is not only that someone may trick the buyer. The risk is also that someone may impersonate the seller and redirect the sale proceeds.

Why this scam works

This scam works because real estate closings involve a lot of moving parts. There may be a buyer, a seller, real estate agents, attorneys, a mortgage lender, a title company, a settlement company, and bank representatives. There are documents to review, deadlines to meet, and large sums of money moving between parties. That can create the perfect environment for confusion.

A buyer may assume the email is legitimate because it references the right property. A seller may assume the title company already verified the payment instructions. A closing professional may believe a message came from the correct person because it appears inside an existing email thread.

The scam doesn't need to fool everyone. It only needs to fool the right person at the right moment.

Warning signs to watch for

A fake wire instruction message may not look obviously fake. Still, there are warning signs that should make you stop and verify.

Watch for:

• New or changed wiring instructions near closing

• A message saying previous instructions are no longer valid

• Pressure to send money immediately

• A request to avoid calling and communicate only by email

• A new phone number included in the message

• A slightly different email address or domain name

• A message that feels unusual for the person who supposedly sent it

• Instructions to keep the change confidential

• Pushback when you try to verify the instructions

• A bank account name that does not match who you expected to pay

• A message with links or attachments you were not expecting

The biggest warning sign is a last-minute change to payment instructions. That doesn’t automatically mean it is fraud, but it does mean you should stop and verify before money moves.

What buyers can do

If you're buying a home, ask about the payment process early. Don't wait until closing day to figure out how wiring instructions will be provided.

What you can do:

• Ask your title company, closing attorney, or settlement agent how wiring instructions will be sent.

• Identify trusted contacts before closing.

• Write down their names and phone numbers.

• Use phone numbers you verified earlier, not phone numbers from a new email.

• Confirm wiring instructions before sending money.

• Confirm the bank name, account name, routing number, and account number.

• Be suspicious of any last-minute change.

• Don't send financial information by regular email.

• Don't rely on links, attachments, or phone numbers included in a new or unexpected email.

The CFPB recommends identifying trusted individuals before closing, writing down their contact information, and confirming wiring instructions in person or by using a phone number you previously agreed to. It also says not to follow instructions contained only in an email.

What sellers can do

If you are selling a home, don't treat the instructions for receiving your proceeds as a routine detail. Your sale proceeds may be the largest payment you ever receive.

What you can do:

• Ask your closing attorney, title company, or settlement company how seller proceeds will be handled.

• Ask how your payment instructions should be submitted.

• Avoid sending bank details by regular email when possible.

• Confirm that any change to your payment instructions requires direct verification.

• Use multi-factor authentication on your email account.

• Watch for messages that claim your proceeds were delayed, rerouted, or need to be reprocessed.

• Contact the closing party quickly if your proceeds do not arrive when expected.

Sellers should also be alert to impersonation. If someone sends payment instructions claiming to be you, the closing party needs a clear process to verify whether the request is real.

How closing professionals can help prevent this scam

Buyers and sellers aren’t the only people who need to slow this scam down. Real estate professionals, attorneys, title companies, and settlement companies can help by making the process clear before money moves.

Helpful reminders include:

• Tell buyers and sellers how wiring instructions will be delivered.

• Explain whether wiring instructions ever change.

• Warn clients about fake emails before closing.

• Encourage clients to verify instructions using known phone numbers.

• Require extra verification for any change to payment instructions.

• Avoid relying on email alone for wire instruction changes.

A simple warning early in the process can make a big difference. People are more likely to recognize a fake instruction if someone already told them to expect this scam.

What to do if you already sent the wire

If you think you sent money to a scammer, act immediately. Don’t wait to see if the money arrives. Don’t spend hours trying to decide whether the message was fake. The sooner you act, the better your chance of recovery.

What you can do:

• Contact your bank immediately.

• Tell the bank the wire was fraudulent.

• Ask for a wire recall or reversal, if available.

• Ask what forms or documentation are needed.

• File a complaint with the FBI’s Internet Crime Complaint Center.

• Include the wire amount, date, sending bank, receiving bank, account information, and any contact details connected to the scam.

• Contact your real estate agent, attorney, title company, mortgage lender, or settlement company.

• Report the fraud to the FTC.

• Save emails, attachments, text messages, wire receipts, and call records.

• Contact local law enforcement, especially for large losses.

The FTC says that if you sent a wire transfer through your bank, you should contact the bank, report the fraudulent transfer, and ask whether the bank can reverse it. The CFPB also recommends contacting your bank or wire-transfer company immediately and asking for a wire recall if this happens during a mortgage closing scam.

There is no guarantee the money can be recovered. But speed matters.

Final takeaway

Real estate wire fraud is dangerous because it hides inside a real transaction.

The buyer really is buying a home. The seller really is selling a home. Money really is supposed to move. That's why one fake payment instruction can be so convincing.

The safest habit is simple:

• Before sending or changing wire instructions, verify the details through a trusted channel.

• Don't rely on one email. Don't use a phone number from a suspicious message. Don't let urgency make the decision for you.

• When the amount is large, slowing down isn't being difficult. It's protecting your money.