Wire Fraud in Real Estate: What You Need to Know (and How to Protect Yourself)
If you’ve bought or sold a home recently, you know how many emails, texts, and documents are flying around during a transaction. Between title companies, lenders, agents, inspectors, and attorneys, there’s no shortage of communication. Unfortunately, that’s exactly what makes real estate such a prime target for scammers.
WIRE FRAUD is one of the fastest-growing threats in our industry—and it can happen to anyone. These scams are sophisticated, and they prey on moments when buyers are excited, distracted, and ready to move. Here’s how it works, what to watch for, and how to stay safe.
How Wire Fraud Happens
The bad guys (aka hackers) gain access to someone’s email account—often a title company, lender, or even a real estate agent—and monitor the communication. They wait until the perfect moment, usually right before closing, and send a fake email that looks totally legit.
It might say something like:
“Hi [your name],
We’ve updated our wiring instructions. Please send your funds to this new account.”
They make it easy to believe—the logo looks real, the tone sounds familiar, and the email address might be just one letter off. But once you send that wire, it’s GONE. Long gone. The devastating truth is that even the FBI and banks can rarely recover the funds.
Who and What’s at Risk
Buyers are usually the most vulnerable since they’re wiring large sums for a down payment or closing funds. But sellers and agents can also be targeted through fake payment or refund requests.
And it’s not just the money—it’s the heartbreak. The utter disbelief that you fell for a scam. After a lifetime of saving, years of planning and dreaming, to lose your funds (and your home) in one click is soul crushing.
How to Protect Yourself
Here’s what we recommend every buyer and seller do:
- ALWAYS verify wiring instructions by phone.
Never trust last-minute changes sent via email. Call your title company or lender directly—using a phone number you’ve personally and independently verified—to confirm the details. Do not rely on contact information printed on letterhead or email signatures. - Use secure communication channels.
Avoid sending financial details over regular email. Most title companies now use encrypted portals—take advantage of them. If you aren’t communicating securely with your title company, ask whether they have an encrypted system. - Double (and triple!) check the sender.
Hover over email addresses and look closely for subtle misspellings or extra characters. - Trust your gut—and make the call.
If something feels off or rushed, pump the brakes. Call your real estate agent, lender, or title company. No reputable professional will pressure you to move faster than you’re comfortable. And I can say with 1000% certainty—we would always rather be “bothered” than find out you’ve lost your life savings.
The Bottom Line
Scary people are out there, utilizing scary systems and doing scary things. In a real estate transaction, the key is staying alert, slowing down, and verifying everything before you click “send.”
At Denali Realty Group, we take client security seriously. We will never send you wiring instructions. We include disclaimers in our email signatures and closing prep documents about the dangers of wire fraud and how to protect yourself.
We also work closely with trusted title and lending partners who share our commitment to safeguarding your information.
Buying or selling a home is one of the biggest financial moves you’ll ever make—let’s make sure it’s also one of the safest.
Have questions? We’d love to have a conversation about ways to safeguard your information.