Wire Fraud in Real Estate
- Oct 3
- 4 min read
Wire Fraud in Real Estate: What It Is, How It Happens, and How to Protect Yourself
Buying or selling a home should be exciting... the keys to your dream place, the fresh start, maybe even a celebratory glass of champagne. Unfortunately, it’s also prime hunting season for cybercriminals who’d love nothing more than to “celebrate” by making off with your life savings.
Wire fraud in real estate is one of the fastest-growing scams in the country, and it’s every bit as sneaky as you imagine. The good news? Once you know how it really works, and what simple steps to take, you can keep your money safe and enjoy your closing champagne without any bitter aftertaste.
Wire Fraud: Not Quite What Most People Think
When people hear “wire fraud,” they often picture some hoodie-wearing hacker intercepting your money mid-flight like a high-tech game of Frogger. In reality, most real estate wire fraud is far less Hollywood and far more email drama.
Here’s the usual playbook:
Email Compromise - The fraudster worms their way into the email account of someone involved in your transaction- this could be the real estate agent, title company, attorney, or even you. They don’t announce themselves; they just sit quietly, reading every email like it’s their favorite soap opera.
Gathering Intel - They learn names, dates, property addresses, and - most importantly - when you’ll be wiring money.
The Fake-Out - At just the right time, they send you an email that looks exactly like it’s from your trusted contact… except the wire instructions point to their account.
Poof, It’s Gone - You wire the funds, and within minutes, the money is whisked away through a maze of accounts faster than you can say, “Wait, what just happened?”
The Real Danger: Intercepted Instructions, Not Intercepted Funds
It’s important to understand that scammers don’t typically hack the bank transfer itself, they hack the conversation about the transfer. They’re after the wire instructions, not the wire in motion. And because their fake emails look convincing, right names, right property address, even the right signatures, it’s easy to fall for if you’re not hyper-vigilant.
How They Pull It Off
Almost-Identical Email Addresses - They swap one letter or add a period, and your brain fills in the rest.
Stolen Email Signatures - Logos, disclaimers, even favorite quotes—lifted directly from legitimate messages.
Urgency - “Funds must be wired immediately to avoid delays!” Because if you panic, you skip the double-check.
They’re not just playing tech tricks, they’re playing mind games.
Spotting the Red Flags
While scammers are getting better at making their emails look legitimate, there are still some tell-tale signs that something’s not right. Watch for last-minute changes to wire instructions, especially if they arrive out of the blue. Be wary if the sender’s email address is off by even one letter or includes odd punctuation. Poor grammar, unusual phrasing, or slightly “off” formatting can also be a giveaway. Another big red flag? Urgency. If the message says you must wire funds immediately to avoid losing the deal, slow down. And finally, trust your instincts... if anything about the timing, tone, or details feels even a little “off,” stop and verify using a phone number you know is correct.
How to Keep Your Money Safe
1. Verify Wire Instructions by Phone - Always
Call before sending money, using only phone numbers you got from a trusted, verified source at the beginning of your transaction. In my business, every client has access to a private client portal listing the verified names and phone numbers of everyone involved- including the closing company. Never trust a phone number or email address that comes with the wire instructions; those could be part of the scam.
2. Understand Who Sends Wire Instructions
Your real estate brokerage or agent will never send wire instructions. That’s not laziness- it’s policy. It ensures the sensitive details come only from the closing company or escrow officer. If you get wire instructions from me, you should immediately assume someone’s up to no good (and call me, from your verified number, to report it).
3. Slow Down and Breathe
The scammers’ best friend is urgency. If you get an email telling you to wire funds “immediately,” take a deep breath and pick up the phone to confirm. Buying a home is exciting, but it’s not a race to see how fast you can drain your bank account.
4. Trust Your GutIf anything feels off, wording that sounds unusual for your contact, instructions that change at the last minute, or even weird formatting, pause. A five-minute verification call is a lot cheaper than a six-figure mistake.
Humor Aside, This Is Serious
Wire fraud in real estate isn’t about “hacking” in the movie sense, it’s about tricking good, smart people into wiring money to the wrong place. Once it’s gone, it’s almost impossible to get back.
The bottom line? Protecting yourself is simple: verify before you wire. My clients have the tools to do exactly that, and I’ll always encourage - no, insist - that you double-check every single time. And remember: in a real estate transaction, “trust but verify” isn’t just good advice - it’s your wallet’s best friend.
📍Naples, Florida
📞(239) 293-8079
#️⃣ Instagram: ReneeHahnLuxuryNaples
#️⃣ Facebook: LuxuryRealEstateinNaples
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