There’s a lot at stake when you’re buying real estate, not just emotionally, but financially. If you’re financing your investment, there can be a unique element of risk that you need to be aware of to protect yourself.
Buying or refinancing a home is one of the biggest financial decisions you’ll ever make, and with so much on your mind it’s easy to overlook threats that could cost you thousands. One of the fastest-growing dangers in real estate today is mortgage wire fraud, and it’s something every homebuyer or real estate investor should know how to avoid.
In this post, we’ll walk you through exactly what mortgage wire fraud is, how scammers operate, red flags to watch for, and the steps you can take to protect yourself and your money.
What is Mortgage Wire Fraud?
Mortgage wire fraud is a sophisticated scam where cybercriminals pose as your real estate agent, lender, or title company to trick you into wiring your closing funds to the wrong account (theirs). Once the money is gone, it’s incredibly difficult to recover even if you get the FBI involved.
Typically, these scams involve phishing and spoofing techniques. A scammer might gain access to your agent’s email, monitor your transaction, and send you fake but convincing wiring instructions. They may even spoof phone numbers and email addresses so it looks like the message is coming from someone you trust.
What Wire Fraud Looks Like in Real Life
You might assume that you could easily spot a scam like this, but savvy, experienced people fall for it all the time. In reality, it can be harder to recognize than you expect. Here’s how it can go: Imagine you’re just days from closing. You’ve confirmed everything with your lender and are prepared to wire your down payment. Then, you get an urgent email that looks like it’s from your real estate agent:
“There’s been a last-minute change in our wire instructions. Please send your funds to this new account as soon as possible to avoid closing delays.”
The message includes your name, transaction details, and even your agent’s signature. In a panic, you send the money.
But it wasn’t your agent. It was a scammer. And now your closing funds are gone. Unfortunately, this scenario happens more often than people realize, and over $1 billion is lost annually to real estate wire fraud.
Want a real life example? Picture this: you’re just days away from closing on your dream home. You’ve saved for years, done everything right, and you’re finally in the home stretch. But in a matter of minutes, your entire down payment — nearly $129,000 — is at risk of being stolen.
This almost happened to one of our clients.
During a recent home purchase, a scammer gained access to the buyer’s personal email account. Once inside, they monitored ongoing conversations between the buyer, our lending team, and the escrow company, reading every message, gathering transaction details, and waiting for the right moment to strike.
Just days before closing, the scammer posed as our loan processor and sent a new email in the same message thread. It included fraudulent wire instructions and directed the buyer to send their down payment to a fake account. The email looked incredibly convincing. It used real names, matching transaction amounts, and even mimicked our formatting. The only signs something was off? A slightly altered email address and an unfamiliar phone number.
Luckily, someone on our team spotted the red flags and immediately called to confirm the instructions. That extra step prevented what could have been a devastating financial loss. If the transfer had gone through, that money would have been nearly impossible to recover and closing would have been delayed indefinitely.
Watch Out for These Red Flags
To protect yourself, you need to recognize the signs:
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Last-minute changes to wiring instructions
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Urgent emails asking you to send money quickly
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Requests to send sensitive financial info via email
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Messages that look legitimate but are slightly off (spelling errors, strange formatting, etc.)
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Spoofed phone numbers or email addresses that closely mimic your agent’s or lender’s
If anything feels off, pause and verify. Your mortgage lender and your agent will always be happy to respond to you making sure all is well.
Protecting Yourself From Mortgage Wire Fraud
Based on our experience and top tips from FBI fraud experts, here are the best ways to protect yourself from wire fraud.
Know the Closing Process Ahead of Time
Stay connected with your loan officer, or anyone on our team, to remain informed. It’s best to talk with your lender and agent early on about how the closing and wire process will work. Establish clear steps, timelines, and who will be involved. You might even consider setting up a shared passphrase that trusted parties can use to verify their identity. This way, you’ll know if something is happening that isn’t part of the plan, and you’ll have a quick way to verify if a change is legitimate.
Write Down Trusted Contact Information
Keep a hard copy of names, phone numbers, and emails for your lender, agent, escrow officer, and title company. Never rely solely on contact info in an email when you are verifying wiring instructions.
Confirm Wiring Instructions In Person or By Phone
Always verify any wiring instructions over a known, trusted phone number, never from a number provided in an email. Ask your title company to confirm account details verbally, including the routing and account numbers. Remember to be aware even with phone calls because scammers can spoof phone numbers, so be cautious even if someone sounds legitimate. If you receive a suspicious call, hang up and call a number you know is real.
Be Suspicious of Urgency
Scammers tend to use fear and urgency to push you into making mistakes. If you’re being told to act fast, stop and verify the request before doing anything. Your agent, or anyone from our team, will not work to make you feel anxious and rushed.
Never Send Financial Information Over Email
Avoid sending account numbers, bank details, or personal financial info via email. Even if you trust the recipient, phishing attacks can make your messages vulnerable. There are some cases in which you’ll send private or financial information through an encrypted form, but not just in the body of an email.
What If I’ve Already Fallen for Wire Fraud?
If you think you’ve fallen victim to wire fraud:
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Contact your bank immediately – Request a wire recall and explain the situation.
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File a complaint with the FBI via their Internet Crime Complaint Center (IC3).
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Notify your us and your agent – Your lender and realtor team can help you take the next steps.
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Consider consulting an attorney – For legal guidance specific to your situation.
Time is critical. The faster you act, the better your chances of recovering funds.
Wire fraud can affect anyone — even savvy buyers and sellers. The best defense is being prepared, asking questions, and verifying everything directly with your trusted contacts. Our team works closely with clients throughout the entire mortgage process to ensure a secure, smooth experience from start to finish. Remember, one of the best ways to protect yourself from scams is to work closely with trusted mortgage professionals like our team. If you want to learn more about different financing options, apply for a loan, or talk with one of our mortgage experts, contact us any time!