Protect Yourself Against Wire Fraud in Real Estate Transactions

In today’s digital age, wire fraud is a growing threat, especially during high-stakes transactions like real estate purchases. Criminals are increasingly targeting buyers, sellers, and escrow agents by intercepting emails and altering wiring instructions to steal funds. Here are some essential steps to safeguard your money and ensure a secure transaction.

1. Use Paper Cashiers Checks Whenever Possible

Whenever feasible, opt for paper cashiers checks instead of wiring funds. This minimizes the risk of wire fraud by avoiding electronic transfers altogether.

2. Assume Your Email Conversations Have Been Hacked

It's best to assume that any sensitive email communication could be compromised. Avoid sharing personal financial information or wiring instructions via email.

3. Always Verify Routing Numbers and Account Details

Before wiring money, double-check the routing numbers, account numbers, and bank addresses. Even when calling your escrow agent, verify these details over the phone using a known phone number, not one provided in an email.

4. Use a Known, Verified Phone Number

Keep your escrow agent’s phone number saved in a secure location, like your phone or a written record. Never rely on a number included in an email, as fraudsters can intercept and alter communication. When in doubt, call the number you previously saved.

5. Beware of Spoofed Phone Numbers

Phone numbers can be spoofed by scammers to look legitimate. If you receive an unexpected call or have any doubts about the person on the line, hang up and call back using the trusted number you already have saved.

6. Wire Instructions Rarely Change

Wire instructions generally remain consistent throughout the transaction. Be cautious of any sudden changes, and always verify with your escrow agent before proceeding.

7. Be Wary of Wiring Funds to Individuals

It is extremely rare for funds to be wired directly to an individual. If you are asked to wire money to a person instead of an escrow account, assume it is fraud until proven otherwise.

8. Escrow Agents, Not Real Estate Agents, Send Wiring Instructions

Wiring instructions should only come from your escrow agent, not your real estate agent. If you receive wiring instructions from anyone else, verify them with your escrow agent directly.

9. Add Multi-Factor Authentication to Your Email

To secure your email account, set up multi-factor authentication (MFA). This adds an extra layer of security, making it harder for hackers to access your email, even if they have your password. Make sure the phone number linked to MFA is correct and trusted.

10. Remove Multi-Factor Authentication After Closing

Once your escrow is complete and the transaction has closed, you may consider removing multi-factor authentication if you no longer need that level of security on the account.

By staying vigilant and following these steps, you can protect yourself from wire fraud and ensure a secure real estate transaction. Always err on the side of caution, and never hesitate to double-check instructions or contact your escrow agent if something doesn’t feel right.