Real Estate Wire Fraud: How to Protect Your Closing in 2026

Real estate wire fraud remains one of the most common and costly cybercrimes in the United States, especially during property closings, where large sums of money are transferred quickly and often electronically. Each October, as part of Cybersecurity Awareness Month, it’s essential for buyers, sellers, lenders, and title professionals to understand how wire fraud happens and what steps they can take to prevent it.

According to the FBI’s 2024 Internet Crime Complaint Center (IC3) Report, Americans filed over 859,000 complaints last year, representing $16.6 billion in reported losses. This marks a 24% increase from 2023. Within those totals, Business Email Compromise (BEC), the primary vehicle for real estate wire fraud, accounted for $2.77 billion in losses. This makes BEC one of the top three most financially damaging forms of cybercrime.

For the real estate industry, the threat is especially severe. In 2024, there were 9,359 real estate and rental fraud complaints, resulting in losses exceeding $173.6 million. These crimes target the very trust that drives a closing, and they often strike just days before a buyer wires their down payment or full purchase funds.

How Real Estate Wire Fraud Happens

Most cases of real estate wire fraud stem from Business Email Compromise (BEC) or Email Account Compromise (EAC) scams. In these attacks, cybercriminals hack or spoof legitimate email addresses belonging to real estate agents, title companies, or attorneys. Once inside the communication thread, they quietly monitor the transaction, waiting for the right moment to intervene.

When the time is right (typically right before closing), the scammer sends a convincing message with “updated” wire transfer instructions. The email appears authentic, incorporating the correct logos, professional language, and accurate property details. But the wiring information directs funds to a fraudulent account. Once sent, that money often disappears within hours through a web of international accounts.

While law enforcement continues to make progress, recovery rates remain limited. The FBI’s Recovery Asset Team (RAT) reported that it successfully froze or recovered 66% of attempted stolen funds in 2024 using its Financial Fraud Kill Chain. However, time is critical—victims who report within hours stand the best chance of recovery.

Under 18 U.S.C. §1343, wire fraud occurs when a person uses electronic communication—such as email or phone—in a scheme to defraud. Each message sent as part of such a plan can constitute a separate offense, carrying severe penalties including imprisonment and restitution.

Best Practices to Prevent Real Estate Wire Fraud

Protecting your transaction begins with proactive communication and digital awareness. Here are several best practices that every buyer and professional should follow:

• Always confirm wiring instructions in person or by phone to ensure accuracy. Never rely solely on email, even from trusted contacts. Call using a verified number from your title company’s official website or business card.

• Never email financial information. Sensitive details, such as bank account or routing numbers, should never be transmitted unencrypted.

• Check website security. Before entering financial data, make sure the site begins with “https”—the “s” signifies a secure, encrypted connection.

• Avoid clicking on unknown links or attachments. Even familiar email addresses can be spoofed. Phishing attachments can install malware designed to steal your credentials.

• Keep software current. Regularly update your computer, phone, and browser security tools to close known vulnerabilities.

• Report suspicious activity immediately. If you suspect wire fraud, contact your title company, bank, and the FBI’s IC3 (www.ic3.gov) right away.

Cybercriminals often prey on busy buyers and older adults—groups that collectively lost nearly $4.9 billion to online scams in 2024. Awareness and a quick phone call can stop an irreversible mistake before it happens.

Stay Vigilant During Cybersecurity Awareness Month

Real estate wire fraud thrives on urgency and misplaced trust, but it’s preventable with diligence and awareness. By confirming every instruction and utilizing secure systems, you can safeguard your transaction against the most common form of cybercrime in the real estate industry today.

Plymouth Title Guaranty Corporation prides itself on educating clients and partners about wire fraud prevention and implementing the highest security standards across all our services. If you receive unexpected or suspicious wiring instructions, please call our office directly before sending any funds. A quick verification can save you from a costly mistake. Stay alert. Stay secure. And remember: always verify before you wire.

For further information on wire fraud, contact the Chicagoland title insurance and escrow specialists at Plymouth Title Guaranty Corporation.