by Karen Tyrrell
Buying a home is no question one of the largest financial decisions individuals and families will make. Unfortunately, it has also become a prime target for cybercriminals. In recent years, wire fraud in real estate transactions has skyrocketed, leaving many homebuyers and sellers devastated.
Scammers often pose as real estate agents, title company representatives, or lenders. They send fake emails or texts with fraudulent wiring instructions, tricking buyers into sending their down payment or closing funds to a criminal's bank account. Once the money is sent, it’s often impossible to recover.
How Wire Fraud Happens
Email hacking: Criminals hack into a real estate agent’s or title company’s email account and monitor communications.
Fake messages: The hacker sends a message to the buyer with “updated” wiring instructions.
Urgency and pressure: The message often creates a sense of urgency, saying the transfer must happen immediately to avoid delays.
Funds stolen: The buyer unknowingly wires their money to the scammer’s account.
How to Avoid Real Estate Wire Fraud
To protect yourself and your hard-earned money, follow these steps:
-
Verify instructions by phone: Always call your real estate agent or title company using a trusted number that has been provided to you by your agent, not the one in an email or text.
-
Be suspicious of last-minute changes: Wiring instructions rarely change. If they do, treat it as a red flag.
-
Use secure communication: Avoid sending sensitive information via email. Ask if your agent uses secure portals or encrypted messaging.
-
Look closely at email addresses: Scammers often use addresses that look almost identical to legitimate ones.
-
Confirm bank details in person: If possible, verify wiring information face-to-face.
-
Report suspicious activity immediately: If you think you’ve been targeted, contact your bank and the FBI’s Internet Crime Complaint Center (IC3) right away.
Final Thoughts
Real estate wire fraud is a growing threat, but by staying vigilant and double-checking every step of the transaction, you can dramatically reduce your risk. Remember: when in doubt, verify before you wire.
Protect your dream home and your savings by taking a few extra minutes to confirm that your money is going exactly where it should.
Karen Tyrrell, a resident of Ponte Vedra Beach since 2005, attended Ursuline Academy, Texas A&M University and l’Université de Paris La Sorbonne graduating with degrees in Economics, International Business, and French. Karen has a love for photography and yet is dialed in to all the neighborhoods of Ponte Vedra Beach and the surrounding areas as a Realtor and team member of The Volen Group.