Protecting Your Closing Funds

How real estate wire fraud actually works

Impersonators may compromise a real account, spoof a familiar address, telephone a participant or send deceptive documents and links. They may use genuine transaction details to make false payment instructions look credible. Visual similarity and personal details do not authenticate the sender.

The FBI’s 2025 IC3 report records 12,368 complaints and $275.1 million in reported losses in its real-estate category. That category includes more than closing-wire scams. BEC, a separate category across industries, had about $3.05 billion in reported losses; these figures do not establish that most real-estate losses came from BEC.

This isn't just a buyer problem

Sellers’ proceeds, buyers’ closing funds and mortgage payoffs can be targeted. An impersonator may give the settlement provider false seller account instructions, or pose as a provider when contacting a buyer. Independently verify account changes and identity using established contacts; do not send sensitive banking details in a reply to an unverified message. See NAR’s wire-fraud resources.

Tom's Honest Take

I bring this up with every single client now, buyer or seller, early in the process, before anyone is even close to a closing date. It feels like an odd thing to warn people about when we're still touring homes, but that's exactly the point. If the first time someone hears about wire fraud is the week of closing, when everyone's stressed and moving fast, that's precisely when a fraudulent email is most likely to slip through.

My rule with every client is simple: I will never send wiring instructions by email. Your title company’s procedures need to be confirmed directly with that company. Before sending funds or changing an account, call the appropriate recipient using contact information established independently of the message. No single habit eliminates every fraud risk.

— Tom Gilliam

Have a question about protecting your closing?

I walk every client through wire fraud prevention before we ever get close to a closing date.

📞 248-790-5594 | Homes2MoveYou.com

Warning signs and verification steps

Look for unexpected payment changes, pressure, look-alike addresses, unusual links and requests to leave established communication channels. A legitimate closing can involve a wire, so the payment method alone does not prove fraud. Use a number established independently of the message to confirm the authorized recipient, receiving bank, routing and account details. Ask your bank about confirming the beneficiary name, and confirm receipt with the closing provider after sending. If information differs, stop and resolve it. The CFPB closing-scam checklist also cautions about incoming calls and emailing sensitive financial information.

If money may have gone to a scammer, act immediately

Immediately call the sending bank’s fraud team, explain that the transfer may be fraudulent and request a recall or reversal. Ask it to contact the receiving institution. Notify the closing provider, lender, agent and attorney through trusted channels; preserve messages and transfer records. Report to IC3 and local law enforcement. Act even if you discovered the fraud later—there is no guaranteed recovery window or refund. See the OCC’s response guidance.

For 2025, IC3 reported 3,900 Financial Fraud Kill Chain incidents, about $1.164 billion in attempted theft and $679 million frozen—roughly 58% of those dollars. This is not a 58% chance of recovering an individual real-estate wire, nor proof that all frozen funds were returned to victims.

Tom Gilliam RE/MAX Classic: Protecting Every Closing

Wire fraud prevention starts long before closing day, and I make sure every client understands verification steps intended to reduce fraud risk. As the best real estate agent Oakland County Michigan has to offer, and the best realtor Farmington Hills Michigan trusts, I bring that same diligence whether you're searching for an entry-level home or luxury homes for sale Farmington Hills Michigan and waterfront homes for sale Oakland County Michigan.

📞 248-790-5594 | Homes2MoveYou.com

How common is wire fraud in real estate transactions?

IC3’s real-estate category records reported complaints and losses. It does not provide the fraction of all closings affected, and not every real-estate complaint involves a closing wire. Report totals do not establish an Oakland County incident rate.

How do I verify wire instructions before sending money?

Call the recipient using a phone number you already have on file, obtained independently rather than from the email itself, and verbally confirm the bank name, account number, and routing number match what was provided earlier through a separate channel.

Can wire fraud happen to a seller, not just a buyer?

Yes. Sellers can have their closing proceeds redirected through a fraudulent email claiming their bank account information has changed. Sellers should apply the same phone verification steps as buyers before confirming any account changes.

What should I do immediately if I've already sent a fraudulent wire?

Immediately contact the sending bank’s fraud team and ask for a recall or reversal and contact with the receiving bank. Report to IC3 and notify your title company, lender, agent and attorney through trusted channels. Preserve records. Do not wait because you think a recovery window has passed.

Is it normal for a title company to send wiring instructions by email?

Providers use different delivery methods, including secure electronic systems. An email, attachment or portal link should not be treated as proof of authenticity. Confirm the provider’s process in advance and independently verify instructions with a trusted contact before transferring funds.

What actually recovers stolen wire funds?

Financial institutions and law enforcement may help freeze or recover funds, but outcomes vary. A frozen-dollar statistic is not a case-success rate or a promise of repayment. Report immediately; there is no guaranteed 24-to-72-hour window or guaranteed refund.

Recommended Reading

Multiple Offer Situations: A Guide for Buyers and Sellers · Waiting for Lower Mortgage Rates in Oakland County · FBI IC3: Real Estate Fraud Losses Hit $275M · NAR: Wire Fraud Resources · Michigan Attorney General: Real Estate Scam Consumer Alert