Buying a home is one of the largest financial transactions many people will make. While most real estate transactions are completed without issue, criminals sometimes attempt to exploit the closing process by impersonating trusted parties and providing fraudulent payment instructions.
Understanding how these scams work, recognizing common warning signs, and verifying payment instructions are some of the most important tools in minimizing your risk during the homebuying process.
Real estate wire fraud is a type of financial scam in which criminals attempt to deceive buyers or sellers into sending funds intended for a real estate transaction to a fraudulent account.
These scams often occur during the closing process, when large financial transfers are expected and multiple parties are communicating. Fraudsters may impersonate a title company, settlement professional, lender, attorney, or real estate professional—or attempt to intercept legitimate communications—to make fraudulent payment requests appear legitimate.
While fraud tactics continue to evolve, understanding the fundamentals of how they work can provide an additional layer of awareness.
Wire fraud attempts can take many forms. Common tactics may include:
Emails, text messages, or phone calls that appear to come from someone involved in your transaction.
Requests to update or replace previously provided wiring instructions.
Messages creating a sense of urgency or requiring immediate action.
Communications directing you to use new contact information.
Requests that discourage you from independently verifying payment instructions.
Many fraudulent communications are designed to resemble legitimate correspondence, which is why it's important to verify any request involving the transfer of funds using a known and trusted phone number.
While no precaution can eliminate the risk of fraud, these practices can help reduce the likelihood of becoming a victim.
Verify wiring instructions by calling the title/settlement company directly using a trusted phone number you've previously confirmed—not one provided in a recent email or text message.
Never rely solely on emailed or texted wiring instructions when sending funds.
Be cautious of unexpected or last-minute changes involving payment instructions.
Confirm requests involving money directly with your title/settlement company or another trusted party involved in your transaction.
Ask questions if you're unsure about any communication related to your closing.
Taking a few extra minutes to verify payment instructions can help prevent costly mistakes.
If you believe you've received fraudulent wiring instructions or think funds may have been sent to the wrong account, acting quickly may improve the likelihood of recovering funds.
Consider taking these steps as soon as possible:
Contact your financial institution immediately.
Notify your title company or settlement agent.
Inform your real estate professional or lender, if appropriate.
Report the incident to the FBI's Internet Crime Complaint Center (IC3) and follow any guidance provided by law enforcement.
Your financial institution and transaction professionals can help you understand the appropriate next steps based on your situation.
Title.com including Fidelity National Financial and our family of companies believe buyer education, secure communication practices, and transaction verification are important components of helping reduce wire fraud risk throughout the closing process.
This approach is supported by industry research. CertifID's 2026 State of Wire Fraud Report highlights ongoing wire fraud trends and reinforces the importance of verifying payment instructions and recognizing potential warning signs before transferring funds. Industry research continues to reinforce the importance of buyer education and verification practices.
According to CertifID's 2026 State of Wire Fraud Report:
Nearly one in four homebuyers reported receiving suspicious or fraudulent communications during the closing process.
Sixty percent of title professionals reported an increase in attempted wire fraud over the previous year.
First-time homebuyers are three times more likely to become victims of wire fraud than experienced buyers because they are less familiar with the closing process and common fraud tactics.
Source: CertifID, 2026 State of Wire Fraud Report
Educational Notice: The information provided is for general educational purposes only and should not replace the instructions or guidance provided by your title company, settlement professional, lender, or other parties involved in your real estate transaction.
The definitions provided here are for convenience and general informational purposes only. This information is not intended to be, and does not constitute, legal advice. This website and the information provided should not be used as a substitute for the counsel and services of a licensed attorney regarding the applicability of the information to your specific situation or jurisdiction.
The definitions provided here are for convenience and general informational purposes only. This information is not intended to be, and does not constitute, legal advice. This website and the information provided should not be used as a substitute for the counsel and services of a licensed attorney regarding the applicability of the information to your specific situation or jurisdiction.
The definitions provided here are for convenience and general informational purposes only. This information is not intended to be, and does not constitute, legal advice. This website and the information provided should not be used as a substitute for the counsel and services of a licensed attorney regarding the applicability of the information to your specific situation or jurisdiction.
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