Protecting yourself from wire fraud is critical in every real estate transaction. Learn how scammers operate and how to stay safe.
First Source Title Agency will never send wiring instructions via email. We will never request changes to wiring instructions by email. We will never ask you to wire funds to a personal account. If you receive any communication claiming to contain wiring instructions from us, do not act on it. Call us directly at (855) 716-9000 to verify all wiring information before sending any funds.
Real estate wire fraud is a cybercrime in which criminals intercept or impersonate communications between parties involved in a real estate transaction to redirect closing funds to fraudulent accounts. According to the FBI's Internet Crime Complaint Center (IC3), real estate wire fraud resulted in over $446 million in losses in a single recent year, making it one of the fastest-growing financial crimes in the United States.
Scammers exploit the urgency and complexity of real estate closings, knowing that large sums of money are being transferred under tight deadlines. They rely on the fact that buyers, sellers, and even real estate professionals may not question last-minute wire transfer instructions if they appear to come from a trusted source.
The consequences are devastating. Once funds are wired to a fraudulent account, they are typically moved offshore within minutes. Recovery rates are extremely low, and victims may lose their entire down payment or sale proceeds with little chance of getting the money back.
Understanding their tactics is your first line of defense.
Criminals gain access to the email accounts of real estate agents, loan officers, title company employees, or the buyers and sellers themselves. They monitor email threads to learn transaction details, timing, and the names of all parties involved. When the time comes to wire funds, they send convincing emails with fraudulent wiring instructions from the compromised account or a look-alike domain.
Scammers create email addresses that closely resemble legitimate ones, often changing just one letter or using a different domain extension. For example, they might use "firstsourcetit1e.com" instead of "firstsourcetitle.com." These subtle differences are easy to miss, especially when the email content looks professional and references accurate transaction details.
Criminals may send phishing emails to real estate professionals and clients, tricking them into revealing login credentials or clicking malicious links. Once they have access, they can monitor communications and time their fraud attempts to coincide with the actual closing date, making the fraudulent instructions seem perfectly natural.
Fraudsters often create a sense of urgency, sending messages like "the wiring instructions have changed" or "you must wire funds immediately to avoid delaying your closing." This pressure tactic exploits the buyer's anxiety about potentially losing the deal and discourages them from taking the time to verify the information through a separate channel.
If you notice any of these warning signs, stop and call us immediately at (855) 716-9000.
Any email containing wiring instructions should be treated with extreme suspicion, even if it appears to come from your title company, lender, or real estate agent. Legitimate title companies do not send wiring instructions solely by email.
Any request to change previously confirmed wiring instructions, especially close to the closing date, is a major red flag. Legitimate wiring instructions almost never change once they have been provided.
Messages that pressure you to wire funds immediately or claim that your closing will be delayed if you do not act right now are classic fraud tactics. Take the time to verify through a known phone number.
Wiring instructions that direct funds to a personal bank account rather than a business escrow account are always fraudulent. Title company escrow accounts are always business accounts in the company's name.
Carefully examine the sender's email address for subtle misspellings, extra characters, or different domains. Hover over the "from" address to reveal the actual sending address, which may differ from what is displayed.
If someone you have been communicating with by phone suddenly insists on email-only contact for wiring instructions, or vice versa, this change in pattern may indicate that a fraudster has taken over the communication.
Follow these steps every time you need to wire funds for a real estate transaction.
Before wiring any funds, call First Source Title Agency at (855) 716-9000 to confirm the wiring instructions. Use a phone number from a trusted source, such as your original engagement letter or our website. Never call a phone number provided in the same email that contains the wiring instructions.
When you reach our office, ask to speak with your assigned closer and verbally confirm the bank name, account name, routing number, and account number. Do not read the details to them first; ask them to provide the information independently so you can compare it against what you received.
When initiating the wire transfer at your bank, ask the bank representative to verify the receiving account name matches the title company's escrow account. If the account name is a personal name rather than a business name, do not proceed with the transfer and contact us immediately.
After sending the wire, call our office to confirm receipt of the funds. Do not rely on email confirmation alone. Wire transfers typically take two to four hours to process, so plan accordingly and give yourself time to follow up before the end of the business day.
Time is critical. Act within the first 24 hours for the best chance of recovering your funds.
Call your bank's wire transfer department right away and request an immediate wire recall. Time is of the essence. Banks have a narrow window to attempt to recover funds before they are moved out of the fraudulent account. Ask for a reference number and the name of the person handling your case.
Contact us at (855) 716-9000 to report the incident. We will work with our banking partners and your lender to assist in the recovery effort and help coordinate the response with all parties involved in the transaction.
File a complaint with the FBI's Internet Crime Complaint Center at ic3.gov. The IC3 collects and analyzes internet crime complaints and may be able to assist in recovering your funds. Also contact your local FBI field office if the amount exceeds $50,000.
Inform your real estate agent, lender, and attorney about the fraud. If any of their email accounts may have been compromised, they need to secure them immediately. Change your own email passwords and enable two-factor authentication on all accounts related to the transaction.
File a report with your local police department. While local law enforcement may have limited jurisdiction over cyber crimes, a police report creates an official record of the incident that may be needed for insurance claims or legal proceedings.