Real estate transactions are built on trust. Recently, that trust has been tested by the increasing prevalence of wire fraud schemes affecting real estate transactions.
Wire fraud in our industry is no longer a distant cybercrime that happens somewhere else to someone else. It is happening in our communities. It is happening to buyers and sellers. It is happening in transactions handled by experienced professionals. And it is happening at the most vulnerable moment in the process, just before closing.
At a time when purchasing a home should represent a celebratory event, opportunists are inserting themselves at the end of a transaction and stealing significant sums of money representing either transferred deposits or funds needed to close. According to the National Association of Realtors, one of every 20 transactions experiences some form of wire fraud attempt, with collective losses reaching the hundreds of millions of dollars.
What makes these targets troubling is the level of sophistication, as these are not crude attempts easily dismissed. According to the United States Senate Federal Credit Union, wire transfer fraud in real estate typically begins with hackers targeting real estate buyers, sellers, agents, attorneys or title company employees with phishing emails. On the user’s end, when a malicious link is clicked, malware gives scammers access to email accounts. From there, they monitor upcoming closings, studying names, dates and transaction amounts. When the timing is right, they send revised wire instructions that look entirely legitimate, complete with accurate signatures and convincing language. Often, everything appears in order. Yet, upon closer inspection, there is one letter added or deleted in the scammer’s email. An unsuspecting buyer wires funds, believing everything is in order, only to realize the money has been diverted into a fraudulent account. Often, the funds are moved within hours and sent overseas, making recovery difficult.
Here in Florida, the threat is acute. A 2025 Florida Realtors State of Wire Fraud Report revealed that first-time buyers are three times more likely to fall victim than more experienced customers. Inexperience, urgency and the emotional weight of an initial purchase create conditions that are easy to exploit.
We are also seeing increasingly complex tactics. Scammers are impersonating sellers, particularly targeting vacant land or non-homesteaded properties owned by out-of-state residents. They pose as the rightful owner, move quickly to list and sell the property, and attempt to abscond with the proceeds. In some cases, fraudsters are creating fake title company websites that closely resemble legitimate firms, deceiving consumers into sending funds to the wrong place.
There are practical steps every consumer can take to protect themselves, and there are warning signs that should never be ignored. Never rely solely on wire instructions sent by email. Legitimate title companies and lenders understand email is not a secure channel for transmitting sensitive financial information. Before sending funds, call the title company or attorney using a phone number obtained from a trusted source and confirm the account details verbally. Do not simply respond with information to an unsolicited and unverified incoming call, no matter how legitimate it appears.
Real estate professionals know better than to serve as intermediaries in the wiring process, and anyone posing as an agent requesting bank or wiring information should be an immediate red flag. For sellers, ensure that identity verification is being handled thoroughly, whether in person or through secure remote notarization, to reduce the risk of impersonation. Often, it is discovered that the buyer has proven the source of a breach through the use of personal email services or other accounts that lack the highest level of security.
In most situations, even a forensic investigation may not reveal the exact source of the breach, and speculation then takes over, leading to accusations and claims. While experience suggests few instances where the brokerage company is at fault, it is wise to ensure any company chosen for representation carries errors and omissions coverage as well as adequate cyber insurance.
If you suspect you have been targeted or defrauded, contact your bank right away and request a wire recall. Time is of the essence, and acting within hours can make a meaningful difference. File a report with the FBI’s Internet Crime Complaint Center at ic3.gov and notify local law enforcement.
The integrity of our profession depends on vigilance as much as it does on expertise. Almost all losses are avoidable. When buyers and sellers are informed and adhere to clear verification procedures, the risk of fraud is significantly reduced. Together, we must ensure no one can leverage the urgency of a closing to compromise a buyer or seller and undermine confidence in a daily occurrence.
