Wire fraud is one of the most serious financial risks in a real estate transaction. Criminals may impersonate a title company, real estate agent, lender, or attorney to trick a buyer or seller into sending closing funds to a fraudulent bank account.
A fraudulent message can look convincing, especially when it arrives shortly before closing and appears to reference your actual property transaction.
Whether you're buying a home in The Villages, selling property in Leesburg, or closing on commercial real estate elsewhere in Florida, understanding real estate wire fraud can help protect your money.
The Most Important Rule: Verify Before You Wire
Before sending closing funds, contact your title or settlement company using a phone number you independently obtained and previously verified. Confirm the recipient's bank name, account name, routing number, and account number.
Never rely solely on instructions, phone numbers, or links received in an email or text message.
What Is Real Estate Wire Fraud?
Real estate wire fraud occurs when a criminal deceives someone involved in a property transaction into transferring funds to an account controlled by the criminal.
These schemes frequently involve business email compromise (BEC), email impersonation, or fraudulent changes to legitimate payment instructions.
Criminals may gain access to an email account, monitor transaction communications, or create an email address that closely resembles one belonging to a trusted real estate professional.
The fraudster may then send what appears to be an ordinary closing update, directing the buyer to wire funds to a different account.
Why Real Estate Wire Fraud Remains a Serious Threat
According to the FBI's 2025 Internet Crime Report, Americans reported nearly $21 billion in losses across internet crime categories during 2025. Business email compromise remains a significant source of financial losses, and fraudulent payment instructions are one way criminals target real estate transactions.
The financial consequences can be severe because a real estate closing often involves large deposits, down payments, or sale proceeds. Recovering money sent to a fraudulent account can be difficult and is never guaranteed.
Source: FBI Internet Crime Complaint Center Annual Reports .
How a Real Estate Wire Fraud Scam Works
1. The Criminal Identifies a Transaction
The fraudster obtains information about an upcoming property closing. This may involve compromised communications, stolen account credentials, or deceptive emails.
2. A Convincing Message Is Sent
The buyer or seller receives a message appearing to come from their title company, lender, attorney, or real estate agent. It may reference the property address or scheduled closing date.
3. Fraudulent Instructions Are Provided
The message directs the recipient to use a supposedly updated bank account, or claims that urgent action is necessary to avoid delaying the closing.
4. Funds Are Diverted
If the recipient sends the wire without independently confirming the instructions, funds may reach the criminal's account instead of the legitimate settlement recipient.
Seven Ways to Protect Your Closing Funds
- Confirm the title company's contact information early. Before closing, save a verified phone number for your settlement professional. Obtain it from a trusted source rather than from an unexpected email.
- Verify all wire instructions by telephone. Independently call your settlement company and confirm the complete receiving account details before initiating the transfer.
- Treat changes to bank instructions as a major warning sign. Unexpected new account numbers, revised recipients, or last-minute payment requests should trigger additional verification.
- Inspect email addresses carefully. Fraudulent messages may contain subtle spelling changes, unfamiliar domains, or altered reply-to addresses.
- Don't trust urgency as proof of legitimacy. A message claiming your closing will fail unless you wire money immediately may be an attempt to prevent careful verification.
- Avoid sending sensitive banking information by ordinary email. Use the communication and document-delivery methods approved by your settlement company.
- Confirm receipt through a verified contact. After sending funds, independently contact the settlement office to confirm whether the transfer has arrived.
Warning Signs of a Fraudulent Wire Transfer Request
| Warning Sign | Recommended Action |
|---|---|
| Unexpected change in bank details | Stop and verify by an independent call. |
| New email address or unfamiliar domain | Contact your previously verified professional. |
| Pressure to wire funds immediately | Do not skip verification to meet a claimed deadline. |
| Instructions to keep payment changes secret | Treat the message as suspicious and verify independently. |
| Request to send funds to an unfamiliar recipient | Verify the receiving account name and full details. |
What If You've Already Sent Money to a Fraudulent Account?
Act immediately. Time can matter when attempting to recover a fraudulent wire transfer.
- Contact your bank's fraud department immediately. Explain that the transfer may be fraudulent and request an urgent recall or recovery attempt.
- Ask your bank to contact the receiving financial institution and initiate the appropriate fraud recovery procedures.
- Notify your legitimate title company and real estate professionals through independently verified contacts.
- Report the incident to the FBI Internet Crime Complaint Center at IC3.gov .
- Contact appropriate local law enforcement and preserve emails, messages, wire receipts, and transaction records.
Recovery is not guaranteed, but prompt reporting provides the best opportunity for financial institutions and investigators to respond.
How Purvis & Company Title Helps Coordinate Secure Closings
Purvis & Company Title provides Florida title insurance, escrow, and settlement services for residential and qualifying commercial transactions.
Our team encourages buyers, sellers, real estate agents, and lenders to verify all payment instructions before transferring closing funds.
If you receive a suspicious message that appears to involve your transaction, contact our office through a trusted, independently confirmed communication channel before taking action.
Learn more about our buyer and seller closing services or explore our commercial title services .
Real Estate Wire Fraud: Frequently Asked Questions
Can a title company's email account be impersonated?
Yes. Criminals may spoof a sender's address, register a similar domain, or compromise legitimate email accounts. A familiar-looking message is not sufficient proof that payment instructions are authentic.
Should I trust wiring instructions sent by email?
Do not rely on email alone. Before sending funds, independently contact your settlement company using a previously verified phone number and confirm the complete receiving account details.
What if the title company says its wiring instructions changed?
Stop before transferring money. Independently verify the change through a trusted contact. Unexpected changes to bank information warrant particular caution.
Can a fraudulent real estate wire transfer be reversed?
Sometimes funds may be recovered, but recovery is not guaranteed. Immediately contact your bank and request an urgent fraud recall or recovery attempt. Report the incident to IC3.
Does title insurance cover wire transfer fraud?
Standard title insurance primarily addresses specified title-related risks under the policy's terms. It should not be assumed to cover money diverted through a fraudulent wire transfer. Review your policy and any separate fraud-protection coverage for applicable terms.
How can Florida homebuyers verify closing funds instructions?
Contact the actual title or settlement company using a known, independently verified phone number. Confirm the bank, account name, routing number, and account number before authorizing the wire.
Have Questions About Your Upcoming Closing?
Purvis & Company Title serves Florida real estate transactions from our Wildwood and Lady Lake offices. Contact our team for title, escrow, and closing assistance.
Order Title Online → Contact Our Team → Phone: (352) 670-4899
Email: orders@purvisco.com
Sources & Further Reading
- FBI Internet Crime Complaint Center — Annual Internet Crime Reports
- FBI — Business Email Compromise
- Consumer Financial Protection Bureau — Mortgage Closing Scams
- CFPB — Reporting Fraud and Scams
Last updated: October 2026. This article provides general educational information and does not constitute legal, financial, or cybersecurity advice.
