Wire Fraud Is Getting Smarter: The 5 Things Every Buyer, Seller and Agent Should Know
The $500,000 Email You Should Never Trust
Imagine you’re buying a home. You’ve spent months researching locales and visiting listings. You’ve finally found the right property and your offer was accepted. Your loan is approved. Your escrow officer has been working diligently on your transaction with all parties involved, making sure every detail is addressed.
You’re days away from closing.
Then an email arrives.
It looks completely legitimate. It has the name and signature of someone you’ve been communicating with. It refers to your transaction. It may even have the correct property address and closing date.
The message says there’s been a change to the wiring instructions.
You follow the instructions.
And the money goes somewhere it was never supposed to go.
This isn’t a hypothetical problem. The FBI has identified real estate transactions as a significant target for Business Email Compromise (BEC), in which criminals impersonate or compromise accounts belonging to people involved in a transaction and attempt to redirect funds. The FBI has specifically warned that buyers, sellers, real estate agents, attorneys and title/escrow professionals can all be targeted.
The good news is that many wire-fraud attempts can be stopped.
The key is understanding one simple principle:
An email can tell you something. It should not be the only thing you trust when money is moving.
Here are five rules every buyer, seller and real estate professional should know.
1. Never Trust a Last-Minute Change to Wiring Instructions
One of the biggest red flags in a real estate transaction is an unexpected change involving money.
Maybe you’re told the escrow or title company has changed banks.
Maybe you’re instructed to send funds to a different account.
Maybe someone says the seller’s account has changed.
Maybe the message says the change is urgent and needs to happen immediately.
Stop.
A last-minute change doesn’t automatically mean it’s fraudulent. But it should trigger additional verification.
The FBI specifically recommends using a secondary communication channel to verify requests involving changes to account information.
Don’t simply reply to the email and ask, “Is this correct?”
If the email account has been compromised, the person answering may be the scammer.
Instead, independently contact the escrow, title company, lender, attorney or other legitimate party using a trusted phone number you already have—not a phone number included in the suspicious message.
A few minutes of verification can protect hundreds of thousands of dollars or more.
2. Never Rely Solely on Email
Email is incredibly useful during a real estate transaction.
It’s also one of the tools criminals can easily exploit. This is especially true currently with the advancements in AI and compute processing power.
A criminal doesn’t necessarily have to create an obviously fake email. In some cases, criminals compromise legitimate accounts or use information gathered from earlier communications to make fraudulent messages appear convincing. The FBI describes BEC as involving social engineering or computer intrusion and notes that criminals may monitor real estate transactions before trying to redirect funds.
That’s why an email that looks familiar isn’t necessarily safe.
For important financial instructions, set up a second method of verification.
Email says it. Phone confirms it.
For example: “I received an email saying the wiring instructions have changed. Before I do anything, I want to verify the change with you by phone.”
That extra step creates a barrier between the criminal and your money.
3. Call Using a Trusted Phone Number
This may be the most important rule of all.
Don’t verify a suspicious email by calling the number contained in the suspicious email.
During the beginning of the lending process, make sure you connect with and record the contacts and numbers of all the parties involved. Use the number from an established company website or other trusted source. Call the escrow officer, title company, lender, attorney or other professional directly.
The FBI recommends directly calling a business’s main phone line to confirm the identity of an email originator rather than relying on contact information provided in the questionable communication.
And don’t be embarrassed about asking.
A legitimate professional should understand why you’re verifying a wiring instruction.
In fact, the right question isn’t:
“Will they think I’m being difficult?”
It’s: “Have I independently confirmed where my money is going?”
4. Don’t Assume an Email Is Legitimate Because It Looks Professional
This is where wire fraud becomes particularly dangerous.
Many people think they’ll recognize a scam because it will have obvious spelling mistakes, strange formatting or an unbelievable request.
That’s not always the case.
Fraudulent messages can look remarkably convincing. Criminals may impersonate real people, use similar email addresses, copy logos, signatures and use information about an actual transaction to make the communication appear authentic.
The FBI has warned about spoofed email domains that differ from legitimate domains by subtle changes, such as an extra word, character or different domain structure.
So don’t judge an email solely by appearance.
Look carefully at the actual sender address.
But even that isn’t enough.
A legitimate-looking email address does not prove that the account hasn’t been compromised.
Professional-looking doesn’t mean legitimate. Verification is what matters.
5. Ask Questions When Something Changes Unexpectedly
This is the rule that brings everything together.
If something doesn’t look right?
Ask. Has the closing instructions changed?
Ask. The account number is different. Has it changed?
Ask. Why does someone suddenly want you to communicate through a different email address?
Ask. Why are you being pressured to send money immediately?
Ask. Why don’t the seller’s instructions match what you were previously told?
Ask. Why did you receive a message that says, “Please don’t call. Just follow these instructions.”?
Definitely Ask When in Doubt
The FBI has noted that BEC criminals may use urgency and authority to pressure victims into acting quickly.
Don’t let the desire to keep a transaction moving override your instincts.
A legitimate transaction can withstand a verification call.
What If You Already Sent the Money?
If you realize you’ve sent a wire to the wrong account, act immediately.
Don’t wait until tomorrow.
Contact your bank or financial institution at once and report the fraudulent transfer.
Ask whether the transaction can be recalled or reversed.
Also notify the escrow or title company and other relevant professionals involved in the transaction.
The FBI recommends reporting fraudulent transfers promptly because its Internet Crime Complaint Center (IC3) and financial institutions may be able to help with efforts to freeze or recover funds.
The FBI’s 2025 IC3 report also documents a real estate case in which more than $449,000 was fraudulently wired; after the fraud was reported to IC3, the recipient bank was able to place the full amount on hold. That example illustrates an important point: speed matters.
There is no guarantee that funds can be recovered. Once fraudulent funds move through accounts, recovery can become difficult.
That’s why prevention is so important.
The Best Defense Is a Good Process
Wire fraud isn’t simply a technology problem.
It’s a people and process problem.
Technology can help identify suspicious activity. Security systems can provide additional safeguards. Escrow companies can set up procedures requiring independent verification of changes to wiring instructions.
But one of the most effective defenses is still remarkably simple:
Stop. Verify. Then Send.
At Generations Escrow, we believe technology should make escrow safer and more efficient—not replacing the judgment and personal communication that protects a transaction.
Our experienced escrow professionals understand that a wire isn’t just another transaction detail.
For a buyer, it may represent years of savings.
For a seller, it may represent the proceeds from selling a home or investment.
For an agent, it represents the trust their clients have placed in them.
That’s why asking an extra question isn’t an inconvenience.
It’s part of doing escrow right.
The next time you receive an email involving wiring instructions, remember these five rules:
- Never trust a last-minute wiring change without independent verification.
- Never rely solely on email.
- Call using a trusted phone number.
- Don’t assume an email is legitimate because it looks professional.
- When something changes unexpectedly, ask questions.
Because when you’re moving $500,000 or any amount of money, being cautious isn’t being difficult.
It’s being smart.
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