Wire Fraud in Real Estate: What It Is, How It Happens, and How to Protect Your Sale
Intro:
Buying or selling a home is one of the biggest financial transactions most people will ever make—which makes it a prime target for cybercriminals. Wire fraud is one of the most dangerous and fast-growing threats in real estate today. With one misstep, a buyer or seller can lose their entire down payment or proceeds. In this post, we’ll break down how wire fraud happens, what the warning signs look like, and how you can protect yourself and your transaction.
What Is Wire Fraud in Real Estate?
Wire fraud in real estate typically occurs when a criminal intercepts or mimics email communication between parties involved in a property transaction—most often targeting buyers wiring funds for closing. These scams often involve sophisticated phishing techniques, fake email accounts, and even spoofed websites.
How It Happens
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Email Compromise: A hacker gains access to the email account of a real estate agent, title company, lender, or client—often through phishing scams.
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Monitoring Communication: The hacker quietly monitors messages to learn the timing and details of the transaction.
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Sending Fake Instructions: Just before closing, the hacker sends an email—often from a lookalike address—directing the buyer to wire their funds to a fraudulent account.
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Money Is Gone: Once the wire is sent, the funds are quickly moved or withdrawn, often overseas, and are nearly impossible to recover.
The Impact on a Sale
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Buyers may lose their down payment or full purchase funds, derailing the transaction and causing financial devastation.
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Sellers may face delays or even deal fallout if the buyer’s funds are stolen.
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Agents and Brokers can experience reputational harm and potential legal fallout—even if they weren’t directly responsible.
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Title Companies and Lenders may need to review internal systems and bear the cost of additional security or insurance coverage.
How to Protect Yourself and Your Transaction
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Always verify wire instructions by phone using a known, trusted number—not one from an email.
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Be wary of last-minute changes to wiring details or timing.
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Double-check email addresses—fraudsters often change one letter or use .net instead of .com.
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Use secure communication platforms when exchanging sensitive financial information.
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Educate everyone involved, especially first-time buyers who may not be aware of the risks.
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Consider using a cashier’s check instead of a wire when possible.
Final Thoughts
Wire fraud is a real and growing threat in real estate, but with education, vigilance, and the right protocols, it’s also highly preventable. Whether you're buying or selling, talk to your real estate professional early about how to protect your money and ensure a safe closing.
As an added safety net, always consult with your agent before sending any funds or responding to wiring instructions. A quick phone call can be the difference between a secure transaction and a costly mistake. Your agent is your advocate—lean on them to help verify and guide you through every step.
Thinking about buying or selling in Naples?
Protect your investment with a trusted local expert by your side.
📞 Call Brian J Giacomello at 239-281-5269
📧 Email: [email protected]
