Real estate transactions are some of the largest financial moves most people will ever make—and unfortunately, that makes them a prime target for scammers. Over the past few years, wire fraud has become one of the fastest-growing threats in real estate, costing unsuspecting buyers and sellers millions of dollars annually.
The good news? With awareness and caution, you can protect yourself from falling victim.
What Is Wire Fraud in Real Estate?
Wire fraud typically happens when criminals pose as a trusted party in a real estate transaction—like your agent, title company, or attorney. They create emails that look genuine, often mimicking real signatures, logos, and even writing styles.
Their goal? To trick you into sending your funds to the wrong bank account. Once the money is wired, it’s often transferred overseas within minutes, making recovery nearly impossible.
How Scammers Fool Their Victims
Phishing emails are the most common tool fraudsters use. These emails often look legitimate and may:
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Contain familiar names and email addresses with one letter changed (for example, [email protected]instead of [email protected]).
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Reference real details about your transaction, which they may have obtained by hacking into an email account.
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Convey urgency, pressuring you to “act quickly” to send funds before closing.
Because emotions run high during real estate closings, buyers and sellers are particularly vulnerable. You’re excited, busy, and juggling multiple deadlines—exactly the state of mind scammers count on.
The Rise of AI-Powered Scams
Scammers today are increasingly turning to artificial intelligence (AI) to make their schemes harder to detect. With AI tools, they can:
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Create highly convincing fake emails and documents that are free of spelling and grammar mistakes.
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Mimic writing styles of real professionals by analyzing past email correspondence.
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Generate realistic phone calls or voicemails using voice-cloning technology, making it sound like your agent or lender is speaking.
These advancements mean that fraud attempts are becoming more sophisticated and personalized, making it even harder to spot what’s real and what’s fake. This is why slowing down and verifying through multiple trusted channels is more important than ever.
Warning Signs of a Potential Scam
Be cautious if you see any of the following red flags:
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A sudden change in wiring instructions.
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Emails requesting you not to confirm details over the phone.
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Poor grammar, misspellings, or slightly “off” language.
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Requests to send money immediately or risk delaying closing.
How to Protect Yourself
The best defense against wire fraud is vigilance and verification:
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Always confirm instructions by phone. Call your agent, title company, or attorney using a phone number you already know—not one provided in an email.
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Examine email addresses carefully. Fraudsters often make tiny, easy-to-miss changes.
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Do not click suspicious links or attachments. Phishing emails often contain malware designed to steal your information.
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Establish communication protocols early. Before you even go under contract, ask your agent and title company how wiring instructions will be sent and verified.
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Trust your gut. If something feels off—even slightly—pause and double-check.
Final Thoughts
Wire fraud is a serious and costly threat in real estate, but it can be avoided with awareness and caution. By slowing down, double-checking details, and never relying solely on email for wiring instructions, you can protect your hard-earned money and enjoy the peace of mind that comes with a safe, successful closing.
Your real estate agent’s job is not only to guide you through the buying or selling process but also to help keep you safe from scams. If you ever have doubts about an email, voicemail, or wire transfer request—even if it seems convincing—reach out directly to your trusted professional before taking any action.
