Complete Guide to Wire Fraud Prevention in Real Estate (2026)

Updated May 28, 2026 27 min read
Laptop computer displaying security features for wire transfer protection in real estate transaction

Wire Fraud in Real Estate: The $275 Million Problem

Real estate wire fraud cost Americans $275.1 million in 2025, according to the FBI’s Internet Crime Complaint Center. That figure represents 12,368 reported incidents, up from $173 million and 9,359 complaints just one year earlier. The median loss per incident now exceeds $70,000, often representing a buyer’s entire down payment or a seller’s home equity.

This is not a theoretical risk. More than one in five consumers report receiving suspicious communications during their real estate closing, according to CertifID’s 2026 State of Wire Fraud report. First-time buyers are three times more likely to become victims than experienced buyers. And the criminals are getting smarter: business email compromise attempts targeting real estate transactions increased 1,760% in 2025, fueled by artificial intelligence tools that can clone voices, spoof emails, and generate convincing deepfakes.

The good news: wire fraud is almost entirely preventable with the right verification procedures. This guide covers exactly how these scams work, how to protect yourself whether you’re buying or selling, what your title company and agent should be doing, and the critical steps to take if you’ve already sent money to a fraudulent account.

How Real Estate Wire Fraud Works

Wire fraud in real estate follows a predictable pattern. Understanding each stage makes it far easier to spot an attack before you lose money.

Stage 1: Reconnaissance and Access

Criminals begin by compromising an email account belonging to someone involved in a real estate transaction. This could be the buyer’s agent, the listing agent, the title company, the lender, or the attorney. They gain access through phishing emails, credential stuffing from data breaches, or social engineering.

Once inside, they don’t act immediately. They monitor email threads for weeks, learning transaction details: the buyer’s name, the property address, the closing date, the title company involved, and the approximate amount being wired.

Stage 2: Timing the Attack

The criminals wait for the precise moment when wire instructions would normally be sent. This is typically 24 to 48 hours before closing. They know the buyer is expecting to receive wiring details, which makes the fraudulent email feel perfectly natural.

Stage 3: The Spoofed Email

The fraudster sends an email that appears to come from the title company, closing attorney, or agent. The email contains “updated” or “corrected” wire instructions directing funds to a bank account controlled by the criminals. These emails are sophisticated. They use the correct transaction details, reference real conversations, and often mimic the sender’s writing style exactly.

Common tactics include:

  • Spoofing the sender’s email address with one-character differences (using “rn” instead of “m,” or switching .com to .net)
  • Replying within an existing email thread they’ve been monitoring
  • Creating urgency (“wire must be received by 2 PM today or closing will be delayed”)
  • Including real transaction details like the property address and closing date
  • Attaching a letter on the title company’s letterhead with the fraudulent routing and account numbers

Stage 4: The Wire

The buyer, believing the instructions are legitimate, initiates a wire transfer to the criminal’s account. Within minutes to hours, the money is moved to secondary accounts, converted to cryptocurrency, or wired offshore. Once the funds clear the initial receiving bank, recovery becomes exponentially more difficult.

Laptop computer displaying security features for wire transfer protection in real estate transaction
Wire fraud prevention starts with securing your digital communications during a real estate transaction

Why Real Estate Transactions Are Perfect Targets

Several characteristics make home purchases ideal for wire fraud:

Large dollar amounts. A single real estate wire can be $50,000 to $500,000 or more. That is far more lucrative per attack than targeting consumers sending $500 Venmo payments.

Time pressure. Closings have hard deadlines. Buyers feel pressure to wire quickly because a missed deadline could mean losing the home or paying penalties. This urgency overrides the careful thinking that would normally trigger suspicion.

Multiple parties. A typical transaction involves 6 to 10 people emailing back and forth: buyer, seller, two agents, lender, title company, closing attorney, sometimes home inspector and appraiser. Every email account in that chain is a potential entry point.

Infrequent transactions. Most buyers go through this process only a few times in their lives. They don’t know what “normal” wire instructions look like because they have no baseline for comparison.

Expected wire instructions. Buyers know they’ll receive wiring details before closing. When the fraudulent email arrives, it’s exactly what they were anticipating.

The AI and Deepfake Threat in 2026

Wire fraud has evolved dramatically. The FBI reports that IC3 received more than 22,000 complaints referencing artificial intelligence in 2025, with losses exceeding $893 million. For real estate, the implications are severe.

Voice Cloning

Voice cloning technology crossed what researchers call the “indistinguishable threshold” in 2025. With just 3 to 10 seconds of audio (easily obtained from social media videos, voicemail greetings, or phone calls), criminals can generate a synthetic voice that sounds identical to a real person. This includes natural intonation, breathing, pauses, and emotional inflection.

The result: a buyer who calls to “verify” wire instructions may speak with what sounds exactly like their closing attorney or title officer, but is actually a deepfake. Deepfake vishing (voice phishing) attacks surged 1,633% in the first quarter of 2025 compared to the previous quarter.

Deepfake Video

Engineering firm Arup lost $25.6 million after criminals used deepfakes to impersonate multiple executives on a video conference call. While this wasn’t a real estate transaction, the technology is identical. A buyer could potentially receive a video call from what appears to be their real estate agent confirming new wire instructions.

AI-Powered Email Compromise

AI tools now generate phishing emails that are grammatically perfect, contextually appropriate, and free of the telltale signs (broken English, generic greetings) that once made scam emails easy to spot. Business email compromise attempts in real estate transactions are up 1,760% year over year.

Threat Type How It Works Growth Rate (2025) Defense
Email Spoofing Fake sender address mimics title company 1,760% increase Out-of-band phone verification
Voice Cloning AI generates clone from 3-10 seconds of audio 1,633% increase (Q1) Pre-established verbal code word
Deepfake Video Real-time face/voice synthesis on video calls 700% increase In-person verification or code word
AI Phishing Contextually perfect emails with real transaction data 1,210% increase Never trust email for wire changes

Real Cases: What Wire Fraud Victims Experience

These are documented incidents from 2024 and 2025. Every one of these victims was a rational, careful person who simply did not know what to look for.

Nashville couple, 2024: $275,000 lost. A couple purchasing their dream home in Green Hills received what appeared to be legitimate wire instructions from their title company. The email arrived just hours before closing. They wired $275,000 in cash to close. The real title company never sent those instructions.

Franklin, Tennessee real estate investor: nearly $400,000. An experienced investor with decades of real estate experience fell victim when fraudsters simultaneously spoofed his attorney, title agent, and realtor’s email addresses. The coordination made the scam virtually undetectable through normal caution.

Raegan Bartlo, 2024: $255,000. Bartlo and her husband were preparing to close on a home in West Virginia. Days before closing, she received what appeared to be instructions from her title company’s attorney. She wired her $255,000 down payment to the criminals’ account.

Missouri senior citizen, 2025: $1.3 million. The victim received a compromised email with wire instructions for their entire home purchase. The email came from what appeared to be the title company’s actual email address because the title company’s email system had been compromised.

These are not unsophisticated people. They are homebuyers and investors who were caught at a vulnerable moment by criminals with inside knowledge of their transactions.

Red Flags: How to Spot a Wire Fraud Attempt

Train yourself to recognize these warning signs:

Any change to wire instructions. This is the single biggest red flag. Legitimate title companies set wire instructions at the beginning of the transaction and do not change them. If you receive new, updated, or corrected wire instructions by email at any point, assume it is fraud until independently verified.

Urgency language. “Must wire today,” “closing will be delayed,” “new deadline,” “time-sensitive.” Criminals create artificial urgency because they know careful people will verify. If an email makes you feel rushed, slow down.

Slight email address differences. Look at the sender’s email character by character. Common substitutions: “rn” for “m” (exarnple.com vs example.com), adding or removing a letter, using a different domain extension (.net instead of .com), adding a hyphen or underscore.

New or unfamiliar contacts. If someone you haven’t dealt with before sends wire instructions, that’s a flag. The same person who has been handling your file should be the one providing financial details.

Instructions that arrive by email only. Reputable title companies provide wire instructions through secure portals, in person, or through verified phone calls. Email-only delivery of wire details is increasingly rare at security-conscious firms.

Requests to keep the wire transfer confidential. “Please don’t discuss this with your agent” or “send only to this contact” are manipulation tactics to prevent you from verifying with other parties who would catch the scam.

Weekend or after-hours timing. Criminals prefer to send fraudulent instructions on Friday afternoons, weekends, or holidays when the real title company and bank fraud departments are harder to reach.

Person signing real estate closing documents at desk with pen
Verifying wire instructions before signing closing documents is critical for transaction security

The Buyer’s Wire Fraud Prevention Checklist

Follow every one of these steps. A single missed verification can mean losing your entire down payment.

1. Establish a verbal code word at the start of your transaction. When you first meet with your title company or closing attorney, agree on a specific word or phrase that must be spoken before any financial information is shared by phone. This defeats both email spoofing and AI voice cloning because the criminal cannot know the code word established in person.

2. Get wire instructions early and in person (or via secure portal). Ask your title company for wire instructions at the beginning of the process, not days before closing. Receive them in person, through a secure client portal, or via a verified phone call. Never rely on emailed wire instructions alone.

3. Confirm that wire instructions will never change. Ask your title company to state explicitly: “These instructions will not change. If you receive different instructions from anyone, it is fraud.” Reputable title companies will tell you this proactively.

4. Call before you wire. Always. Before initiating any wire transfer, call your title company at a phone number you verified independently (from their website, your original contract, or a business card received in person). Do not call any phone number provided in the email containing wire instructions.

5. Verify account details on the phone. Read back the routing number, account number, and beneficiary name. Have the title officer confirm each digit. Use your code word.

6. Send a small test wire first. If your bank allows it, send a small amount ($50 to $100) and call the title company to confirm receipt before wiring the full amount. This adds a day to your timeline but can save your entire down payment.

7. Use your bank’s fraud verification services. Many banks offer additional verification for large wires. Ask your bank what safeguards they provide. Some banks will call the receiving institution to verify the account before releasing funds.

8. Never wire based on email alone. Even if the email matches every detail of your transaction, even if it comes from an address you recognize, even if it references conversations you’ve had. Always verify by phone using a number you found independently.

Verification Step When to Do It What It Prevents
Establish verbal code word First meeting with title company Voice cloning, impersonation calls
Receive wire instructions early Within first week of contract Last-minute pressure to accept fraudulent instructions
Confirm instructions never change When receiving wire instructions Falling for “updated” instructions scam
Call to verify on known number Day of wire, before initiating Email spoofing, compromised threads
Read back every digit During verification call Transposition errors, partial fraud
Send test wire 1-2 days before closing (optional) Full loss if account is fraudulent
Use bank fraud verification When initiating wire Additional layer of institutional protection

The Seller’s Wire Fraud Prevention Checklist

Sellers are less frequently targeted than buyers (because buyer cash-to-close represents 30% of all wire fraud cases), but seller proceeds are also at risk. When the title company disburses your sale proceeds, those wire instructions can be intercepted too.

1. Verify your account information in person. Provide your bank account details for receiving proceeds in person at the title company, not by email. Use a secure portal if available.

2. Confirm disbursement details before closing. Call the title company on the day funds will be disbursed and confirm where your proceeds are being sent. Use the same code-word protocol.

3. Monitor your email for compromise. If your email has been accessed by a criminal, they could redirect your proceeds by sending “updated” banking information to the title company on your behalf. Enable two-factor authentication on your email immediately when entering a transaction.

4. Watch for suspicious login activity. Check your email’s login history for unfamiliar locations or devices. Gmail, Outlook, and Apple Mail all provide this. If you see anything unusual, change your password immediately and notify your agent and title company.

5. Don’t share transaction details on social media. Posting about your home sale gives criminals the information they need to target you: your name, the property, the approximate timeline, and your agents’ names.

What Your Title Company Should Be Doing

A reputable title company follows industry standards established by the American Land Title Association (ALTA). The latest ALTA Best Practices framework (version 4.2, updated August 2025) includes specific wire fraud prevention requirements. Here’s what to expect:

Secure communication portals. Modern title companies use encrypted platforms (CertifID, Closinglock, Qualia, or proprietary systems) to transmit wire instructions. If your title company is sending wire details by regular email, that is a red flag about their security posture.

Multi-party verification. Before disbursing funds, title companies should verify identity through multiple channels. No wire should go out based on a single email request.

Written wire transfer procedures. ALTA requires documented processes for verifying wire instructions through independent channels, performing daily reconciliation of escrow accounts, and recording disbursement authorizations.

Staff training on impersonation fraud. ALTA 4.2 mandates training on buyer, seller, and borrower impersonation fraud, including validating government-issued IDs.

Proactive client education. Your title company should warn you about wire fraud at the beginning of the transaction. According to CertifID’s 2025 report, only 47% of consumers were informed about wire fraud risks by their real estate professionals at the start of the process. That number should be 100%.

No last-minute instruction changes. A security-conscious title company will tell you upfront that wire instructions are set once and will never change. Any deviation from this is a sign to find a different title company.

Ed Neuhaus, broker of Neuhaus Realty Group, requires every buyer client to receive wire fraud education before reaching the closing stage. “We’ve seen the aftermath of wire fraud in our market,” Neuhaus notes. “A verification phone call takes two minutes. Recovering stolen funds can take months, if recovery happens at all.”

How Your Real Estate Agent Should Protect You

Your agent has a professional obligation to help protect you from wire fraud. In Texas, the Real Estate Commission (TREC) requires license holders to “exercise integrity in the discharge of responsibilities, including employment of prudence and caution so as to avoid misrepresentation.” Brokers are responsible for all brokerage activities, including acts performed by sponsored agents.

What this means in practice:

  • Educate you early. Your agent should discuss wire fraud risks at your first meeting or no later than when you go under contract.
  • Never send wire instructions. Agents should never email wire transfer details on behalf of the title company. That is the title company’s job through secure channels.
  • Coordinate with the title company. Your agent should confirm that the title company you’re using follows ALTA Best Practices or equivalent security protocols.
  • Flag suspicious communications. If your agent notices anything unusual in email threads (new addresses, changed tone, unexpected requests), they should alert you and the title company immediately.
  • Use secure email. Agents handling transaction communications should use two-factor authentication and encrypted email when possible.

Questions to ask your agent: “What is your protocol for preventing wire fraud? Do you send wire instructions by email? What title companies do you work with and what security systems do they use?”

What to Do If You’ve Been Victimized: The Critical First Hours

If you suspect you’ve wired money to a fraudulent account, time is everything. The FBI’s Recovery Asset Team initiated 3,900 wire recovery incidents in 2025 and successfully froze $679 million of $1.16 billion in attempted thefts. That’s a 58% success rate, but only when victims act within the first 24 to 72 hours.

Here is the exact sequence. Do these in order, as fast as possible:

Hour 0-1: Contact your bank’s wire department. Call your bank’s wire operations department directly (not the main customer service line). Request an immediate wire recall. If the wire was initiated within the past 30 minutes, it may be stopped before processing. Ask them to send a fraud alert to the receiving bank and request a freeze on the receiving account.

Hour 0-2: File with the FBI. Go to ic3.gov and file a complaint immediately. The FBI’s Recovery Asset Team (RAT) can contact banks to freeze accounts, but they need your complaint filed first. Include all transaction details: amount, date, time, sending bank, receiving bank, account numbers, and any communications from the fraudster.

Hour 0-4: Notify your title company and agent. Call your title company, closing attorney, and real estate agent. They need to know immediately so they can alert other parties in the transaction and preserve all email communications as evidence. The title company’s errors and omissions insurance may also be relevant.

Hour 0-24: File a police report. File a report with your local police department. This creates an official record needed for insurance claims and any civil litigation.

Hour 0-24: Contact the receiving bank. If you know which bank received the fraudulent wire, contact their fraud department directly. Request they freeze the account. Provide your police report number and FBI IC3 complaint number.

Day 1-3: Document everything. Print all emails related to the fraud. Screenshot the fraudulent email headers (showing full routing information). Preserve all communications. Do not delete anything.

Action Timeline Contact Why It Matters
Call bank wire department Immediately Your bank’s wire operations (not main line) May recall wire before processing
File FBI IC3 complaint Within 1-2 hours ic3.gov Triggers Recovery Asset Team
Notify title company/agent Within 2-4 hours Known phone numbers (not email) Preserves evidence, alerts other parties
File police report Within 24 hours Local police department Insurance claims, civil litigation
Contact receiving bank Within 24 hours Receiving bank fraud department May freeze account before funds move
Document everything Days 1-3 N/A Evidence for recovery and prosecution

Recovery Prospects

According to CertifID’s research, 73% of wire fraud victims recover all or most of their funds when they act quickly. However, 27% recover less than half or nothing at all. The critical variable is speed. Once funds are moved to cryptocurrency or wired offshore, recovery becomes nearly impossible. This is why the first two hours matter more than anything else.

Verification Methods That Defeat Wire Fraud

These specific protocols, used consistently, prevent the overwhelming majority of real estate wire fraud:

The Code Word Protocol

At your first meeting with the title company (in person or via verified video call), establish a verbal authentication code. This is a word or phrase that both you and the title officer will use to begin any phone conversation involving financial information. The criminal cannot know this code because it was established outside of any email communication they may have compromised.

Example: You and your title officer agree that the code word is “bluebonnet.” Before any conversation about wire details, one party says the code word and the other confirms it. If the code word is wrong or absent, hang up immediately and call back on a verified number.

Out-of-Band Verification

“Out-of-band” means using a different communication channel than the one that delivered the instructions. If wire instructions came by email, verify by phone. If they came by phone, verify by calling back on a number from the company’s website. Never verify through the same channel that delivered the original message.

The Callback Protocol

When someone calls you about wire instructions (even if it sounds exactly like your title officer), hang up and call them back at a number you obtained independently. Look up the title company’s main number on their website, call that number, and ask for your contact. This defeats voice cloning because the criminal is calling you from their own phone number, not the title company’s verified line.

Secure Portal Delivery

The most secure title companies now deliver wire instructions through encrypted portals that require authentication (password plus one-time code) to access. If your title company offers this, use it. If they don’t, ask why not.

Texas-Specific Considerations

Texas real estate transactions have characteristics that both increase and decrease wire fraud risk:

Title company as closing agent. In Texas, the title company (not an attorney) typically serves as the closing and escrow agent. This means the title company handles all wire instructions and disbursements. Choosing a title company with strong security protocols is critical.

Independent escrow. Texas requires earnest money to be deposited with the title company or an escrow agent, not held by the real estate agent. This provides an additional institutional layer with its own verification procedures.

TREC regulation. The Texas Real Estate Commission regulates agent conduct and can discipline license holders who fail to exercise prudence. While TREC does not mandate specific wire fraud protocols, the standard of care for Texas agents increasingly includes wire fraud education for clients.

Rapid closing timelines. Texas transactions often move quickly (30 days or fewer), which gives criminals less time to execute their scheme but also gives buyers less time to be cautious. The standard TREC contract’s option period and closing timeline create predictable milestones that criminals exploit.

Community property considerations. In Texas, both spouses typically need to sign closing documents and authorize wire transfers for homestead property. This dual-authorization requirement adds a natural verification layer.

High-value markets. Areas with higher median home prices carry higher per-incident wire fraud risk simply because larger amounts are changing hands. In Austin’s western suburbs, where median prices range from $425,000 in Cedar Park to $650,000 in Bee Cave and over $2 million in Westlake, a single successful fraud can mean six-figure losses.

Title company selection is the buyer’s right. In Texas, the buyer typically chooses the title company (although this is negotiable). Exercise that right wisely. For more on making this decision, see our Complete Guide to Choosing a Title Company in Texas.

For buyers working with Neuhaus Realty Group in the Austin and Hill Country market, wire fraud education is part of the standard buyer consultation. The team recommends specific title companies that maintain robust security protocols and ALTA Best Practices compliance.

Protecting Your Email During a Transaction

Since most wire fraud begins with email compromise, hardening your email security during a real estate transaction is one of the most effective preventive measures.

Enable two-factor authentication (2FA). Turn on 2FA for every email account used in your transaction. Use an authenticator app (Google Authenticator, Microsoft Authenticator, Authy) rather than SMS, which can be intercepted through SIM swapping.

Use unique, strong passwords. Your email password during a real estate transaction should be unique (not reused from any other account) and at least 16 characters. Use a password manager.

Check for forwarding rules. Criminals who compromise your email often set up forwarding rules that send copies of all incoming messages to their own address. Check your email settings for any forwarding rules you didn’t create. In Gmail: Settings > Forwarding and POP/IMAP. In Outlook: Settings > Mail > Forwarding.

Review login activity. Check your email’s recent login history weekly during your transaction. Look for logins from unfamiliar locations, devices, or IP addresses. Gmail: scroll to the bottom of your inbox and click “Details” under “Last account activity.” Outlook: account.microsoft.com/security.

Be cautious with public Wi-Fi. Don’t access transaction-related email on unsecured public Wi-Fi networks. If you must, use a VPN.

Watch for phishing during your transaction. Criminals often gain initial access through phishing. During your transaction, be extra cautious about clicking links in emails, even from people you know. Hover over links to check the actual URL before clicking.

What the Industry Is Doing

The real estate industry has responded to the wire fraud epidemic with multiple initiatives:

ALTA Best Practices 4.2. Released in August 2025, this framework requires title companies to implement written wire transfer procedures, staff training, identity verification programs, and information security policies. Companies that certify compliance with ALTA Best Practices are demonstrating commitment to fraud prevention.

Technology platforms. Companies like CertifID, Closinglock, and Qualia have built verification platforms specifically for real estate wire transfers. These systems verify identities, encrypt wire instructions, and provide audit trails. Many title companies now use these tools as standard practice.

FBI partnerships. The FBI’s Recovery Asset Team works directly with financial institutions to freeze fraudulent accounts. Their 58% recovery rate in 2025 (freezing $679 million of $1.16 billion) shows that the system works when victims report quickly.

NAR Wire Fraud Advisory. The National Association of Realtors provides ongoing guidance to its members about wire fraud prevention, including consumer-facing materials and agent training resources.

Consumer willingness to pay. CertifID’s 2026 research found that 85% of consumers are willing to pay more for title services from companies that prioritize fraud prevention. This economic signal is driving title companies to invest in better security.

Choosing a Title Company with Strong Security

When selecting a title company (which is your right as the buyer in most Texas transactions), ask these questions:

  1. Do you follow ALTA Best Practices? Are you ALTA Best Practices certified?
  2. How do you deliver wire instructions to clients? (Looking for: secure portal, not email)
  3. Do you use a wire verification platform? Which one?
  4. What is your policy on changes to wire instructions? (Looking for: “we never change them”)
  5. Do you have cyber liability insurance?
  6. What training does your staff receive on BEC and wire fraud?
  7. What happens if a fraudulent wire is sent using your name or compromised email?

A title company that cannot answer these questions clearly, or that seems uncomfortable with them, may not have adequate security protocols. For guidance on choosing the right title company for your transaction, see our Complete Guide to Choosing a Title Company in Texas.

Frequently Asked Questions

How common is wire fraud in real estate transactions?
The FBI reported 12,368 real estate fraud complaints totaling $275.1 million in losses in 2025. CertifID’s 2026 research found that more than one in five consumers receive suspicious communications during their closing. First-time buyers are three times more likely to be targeted than experienced buyers.
Can I get my money back if I wire to a fraudulent account?
Yes, but speed is critical. The FBI’s Recovery Asset Team froze $679 million of $1.16 billion in attempted thefts in 2025, a 58% success rate. According to CertifID research, 73% of victims recover all or most of their funds when they act within the first 24 to 72 hours. Contact your bank’s wire department and file an FBI IC3 complaint at ic3.gov immediately.
What is the most common type of real estate wire fraud?
Buyer cash-to-close fraud accounts for 30% of all cases. In this scenario, criminals send fraudulent wire instructions to the buyer shortly before closing, impersonating the title company or closing attorney. The buyer wires their down payment and closing funds to the criminal’s account instead of the legitimate escrow account.
Will my title company ever change wire instructions?
No. Reputable title companies set wire instructions once and explicitly state they will never change. If you receive any email, text, or phone call requesting you use different wire instructions than what you originally received, treat it as fraud and verify independently before taking any action.
Can AI voice cloning be used to impersonate my title company?
Yes. Voice cloning technology now requires only 3 to 10 seconds of audio to create a convincing synthetic voice. Deepfake voice attacks increased 1,633% in early 2025. The best defense is establishing a verbal code word with your title company at the start of your transaction that must be spoken before any financial information is shared.
Is my real estate agent responsible for protecting me from wire fraud?
In Texas, TREC requires license holders to exercise integrity and prudence in all professional activities, and brokers are responsible for acts of their sponsored agents. While agents are not directly liable for wire fraud committed by third parties, the standard of care increasingly includes educating clients about wire fraud risks and connecting them with security-conscious title companies.
Should I send a cashier’s check instead of a wire transfer?
Cashier’s checks eliminate wire fraud risk but introduce different concerns: they can be lost or stolen in transit, take longer to clear, and some title companies prefer wires for large amounts due to verification speed. If you choose a cashier’s check, deliver it in person to the title company. Many title companies accept both methods.
What should I do if I receive wire instructions by email?
Never wire money based solely on emailed instructions. Call your title company at a phone number you found independently (from their website or your original paperwork, not from the email) and verify every detail: routing number, account number, and beneficiary name. Use your pre-established code word. If anything feels off, do not wire until you can verify in person.

Wire Fraud and Your Mortgage Lender

Your mortgage lender is also part of the wire fraud equation. Lenders wire funds to the title company at closing, and their communications can be spoofed just like anyone else’s. Here’s what to know:

Lender wire instructions are separate from yours. The wire you send (your down payment and closing costs) goes to the title company’s escrow account. The lender sends the remaining loan proceeds separately. Both wires need to reach the correct account.

Verify your lender’s communications independently. If you receive any communication from your lender about changes to closing procedures, amounts, or timing, call them at the number on their official website or your original loan documents. For help choosing a lender with strong security practices, see our Complete Guide to Choosing a Mortgage Lender in Austin.

Understand your Closing Disclosure. Your Closing Disclosure (received three days before closing) shows the exact amount you need to wire. Compare this number to what the title company tells you. If there’s any discrepancy, stop and verify. Our Complete Guide to Closing Costs in Texas breaks down every line item so you know what to expect.

Coordinate timing carefully. Wire your funds during business hours when banks and title companies are fully staffed and able to verify. Avoid wiring on Friday afternoons or before holidays when fraud departments may be operating with reduced capacity.

Protecting Earnest Money Deposits

Wire fraud risk does not begin at closing. It starts the moment you go under contract and need to deposit earnest money.

In Texas, earnest money (typically 1% to 3% of the purchase price) must be deposited with the title company or escrow agent within a specified number of days after contract execution. This is usually the first wire a buyer sends in the transaction, and criminals know it.

Apply the same verification procedures to your earnest money wire as you would to your closing funds: call the title company at a verified number, confirm routing and account numbers, use your code word, and never trust emailed instructions alone. For a complete understanding of how earnest money works in Texas transactions, see our Complete Guide to Earnest Money and Option Periods in Texas.

Protect Your Transaction

Wire fraud is one of the few risks in a real estate transaction that can be eliminated almost entirely through proper verification procedures. The criminals are sophisticated, but their attacks rely on one thing: the victim trusting an electronic communication without independent verification. Remove that single point of failure and the scheme collapses.

Before you wire a single dollar toward your home purchase, establish verification protocols with your title company. Get wire instructions early. Confirm they will never change. Set a code word. Call to verify before you send. These steps take minutes and protect hundreds of thousands of dollars.

For buyers and sellers working in the Austin and Texas Hill Country market, reach out to Neuhaus Realty Group for guidance on choosing security-conscious title companies and implementing transaction safety protocols from day one. Start with our Complete Guide to Closing on a Home in Texas and Complete Guide to First-Time Homebuying in Austin for the full picture of what a safe, successful transaction looks like.

Staff

Written by Staff

This article was produced by the Neuhaus Realty Group content team with the assistance of AI writing tools. Staff posts are not personally reviewed by Ed Neuhaus but are published to provide timely information about the Austin real estate market, Texas housing trends, and topics relevant to buyers, sellers, and investors in Central Texas.

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