How to Prevent Wire Fraud in Your Real Estate Transaction

Wire fraud is a growing concern in real estate transactions, where criminals pose as legitimate parties to trick buyers and sellers into sending money to fraudulent accounts.

How does wire fraud happen during escrow?

Wire fraud during escrow happens when a criminal gains access to email communications between the parties involved in a transaction. By impersonating an escrow officer or another party, the fraudster provides false wire instructions, leading the buyer or seller to transfer funds to a fraudulent account. This type of fraud is especially dangerous because the funds are often quickly moved or withdrawn, making recovery difficult.

 

1

Always Verify Wire Instructions with a Trusted Source

  • Before sending any money, call your escrow company using a verified phone number (from their official website or paperwork—not an email).
  • Do not trust last-minute changes to wire instructions. Treat any modification as suspicious and confirm it by phone.

2

Be Cautious of Phishing Emails

  • Scammers may send emails that look like they’re from your escrow company but contain fake wire instructions.
  • Check for misspellings, unusual language, or email addresses that don’t match the company’s official domain.
  • Do not click on links or download attachments from unknown senders.

3

Do Not Share Sensitive Information Over Email

  • Avoid sending personal details, bank account information, or wire transfer instructions via email.
  • Instead, use secure, encrypted portals provided by your escrow company.

4

Confirm Account Details Before Sending Any Wire Transfer

  • Double-check the recipient’s name, account number, and financial institution details before wiring funds.
  • If anything seems off, pause and call your escrow company to verify.

5

Be Skeptical of Urgent or Last-Minute Requests

  • Fraudsters create a sense of urgency to pressure you into skipping verification steps.
  • If you receive an email, text, or call demanding immediate action, take a step back and confirm with your escrow officer.

6

Use Strong Cybersecurity Practices

  • Set up multi-factor authentication (MFA) for your email and banking accounts.
  • Use a strong, unique password for each account and change it regularly.
  • Ensure your device has up-to-date security software to prevent hacking.

7

Call to Confirm Funds Have Been Received

  • After wiring money, immediately call your escrow company to confirm receipt of funds.
  • If there’s an issue, acting quickly can improve the chances of recovering your money.

8

Be Wary of Fake Customer Service Calls or Emails

  • Scammers may pose as bank representatives or escrow officers.
  • If you receive a call or email asking for sensitive information, verify the request independently before providing details.

9

Only Work with Trusted, Licensed Professionals

  • Ensure your real estate agent, escrow company, and title company are reputable and licensed.
  • If something feels off, trust your instincts and ask questions before proceeding.

10

Report Suspicious Activity Immediately

If you suspect fraud or mistakenly send funds to a scammer, take immediate action by contacting:

  • Your bank to try and stop the transfer.
  • Your escrow officer to report the issue.
  • The FBI’s Internet Crime Complaint Center (IC3) at www.ic3.gov.

By staying vigilant and following these steps, you can protect your funds and complete your real estate transaction safely.

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We would love the opportunity to connect with you and discuss how Lakeside Escrow can assist with your escrow needs and help ensure a smooth and efficient escrow process.