Protect Your Real Estate Transaction from Wire Fraud

by First American

Last updated on 6 Dec 2024 4 min read

A woman in her kitchen reviews First American's information about protecting against wire fraud and other cyber threats.

What you’ll learn (TL;DR)

Wire fraud occurs when a bad actor steals a buyer’s purchase funds, such as the down payment for their new home. For example, you may receive wire instructions that appear to be from your title company, escrow officer, or lender, but they are actually from a scammer.
Always carefully examine the sender’s email address when you receive updates on your transaction to verify it is the same as a prior confirmed email address.
Call your escrow officer or settlement agent immediately if you receive an email changing the bank wiring instructions for you to send funds. Always call a trusted or known phone number, NOT the number listed in the email.
If you’ve been targeted, immediately report the fraud to your bank and request a Fraud Wire Recall, inform your escrow officer or settlement agent, and contact the police.

What is wire fraud?

Buying a home is an exciting time, but there can be pitfalls for unsuspecting consumers. Be aware that cyber criminals may be scheming to steal your personal information and money. Wire fraud occurs when a bad actor steals a buyer’s purchase funds, such as the down payment for their new home. For example, you may receive wire instructions that appear to be from your title company, escrow officer, or lender, but they are actually from a scammer.

Real estate cybercrime, including wire fraud, is on the rise nationwide. A survey of title professionals found that 17% of title companies experienced wire fraud and 28% had customers who experienced fraud. [1] Fraudsters remain persistent with their attacks and if they succeed, the impact can be devastating. Luckily, knowing what to lookout for can help reduce your risk of wire fraud.

How to Protect Yourself from Wire Fraud and Other Cyber Threats

As wire fraud and cybercrime risk increases, it is more important than ever to be on alert. Here are some tips to protect yourself:

Do not provide personal information or details about your transaction to any unknown or unnecessary parties.
Secure your devices with a firewall and anti-virus / anti-malware and use strong passwords.
Be on the lookout for phishing attempts to steal your information, which are often designed to create a sense of panic or urgency.
If your escrow officer or settlement agent offers use of an online portal for your transaction, communicate through the portal instead of by email.
Always carefully examine the sender’s email address when you receive updates on your transaction from your real estate agent, escrow officer, or settlement agent to verify it is the same as a prior confirmed email address. Even a slight difference in the email address indicates the email is likely from a fraudster. Some criminals will even create a fake website with a domain name that is slightly different from your title company’s real website.
Call your escrow officer or settlement agent immediately if you receive an email changing the bank wiring instructions (such as a new account number) for you to send or deposit funds for your transaction. It’s rare for your title or escrow company to request any last-minute changes. Be sure to call a trusted or known phone number, NOT the number listed in the email. The number listed in the email could be controlled by the scammer.
Confirm the bank account before sending your funds. Ask your bank to verify the account information before sending a wire.
After wiring funds, immediately call your title or escrow company to verify the funds have been received. Always call using a trusted phone number.