Protecting Your Funds at Closing
What every buyer and seller should know about wire fraud — and how to protect yourself.
The Reality of Wire Fraud
Real estate transactions are among the largest financial events in most people's lives — and criminals know it. According to the FBI's Internet Crime Complaint Center, real estate wire fraud accounted for over $446 million in reported losses in a single year, with the average victim losing more than $100,000.
Texas is consistently among the most targeted states. The combination of high transaction volumes, large dollar amounts, and multiple parties communicating under deadline pressure creates opportunities that sophisticated criminals exploit.
We believe education is the best defense. That starts with making sure you know what to look for.
How Wire Fraud Works
Business Email Compromise (BEC)
The most common scheme targeting real estate transactions
Monitoring
Criminals gain access to an email account belonging to an agent, lender, or attorney involved in a transaction — or even a buyer's or seller's personal email — often through phishing. They quietly monitor communications to learn the details of upcoming closings.
Timing
They wait until just before closing day, when urgency is highest and scrutiny is lowest. Timing is everything — the email arrives when the buyer is expecting wiring instructions.
Spoofing
The criminal sends an email that looks nearly identical to a legitimate message from the title company, with altered wiring instructions directing funds to their account.
Extraction
Once the buyer wires funds to the fraudulent account, the money is moved — often offshore — within hours, making recovery extremely difficult.
Seller Impersonation Fraud
In a less common but growing scheme, criminals impersonate property owners — often of vacant land or investment properties — to initiate fraudulent sales. They forge identification documents and attempt to close the transaction before the real owner discovers what has happened. Thorough title searches and identity verification are critical defenses against this type of fraud.
Red Flags to Watch For
If you notice any of these warning signs during your transaction, stop and call your title company directly.
Last-Minute Wiring Changes
An email requesting changes to wiring instructions close to your closing date — especially if it comes with a sense of urgency.
Pressure to Wire Immediately
Requests to send funds right away or outside of normal business hours, often with language designed to create panic.
Slightly Misspelled Email Addresses
An email that looks almost right but has a subtle difference — a swapped letter, an extra character, or a different domain.
Wiring to a Personal Account
Instructions directing you to wire funds to a personal bank account rather than a verified business escrow account.
Requests for Secrecy
Any instruction to keep wiring details confidential or not to verify them with your title company or agent.
Conflicting Instructions
Wiring details in an email or PDF attachment that differ from what you received during your pre-closing meeting or initial communication.
Why Education Matters
No title company can guarantee protection from wire fraud. The schemes are sophisticated, the criminals are patient, and even experienced professionals can be caught off guard.
That's why we believe the most important thing we can do is make sure our clients know what to look for. An informed buyer who knows the red flags is far less likely to fall victim to a fraudulent wire request.
We encourage every client to read this guide, ask questions, and verify everything independently. When it comes to protecting your funds, your awareness is your strongest safeguard.
What You Can Do to Protect Yourself
You don't need to be a security expert — just informed. Here are the most important steps you can take.
Always verify wiring instructions by calling your title company directly using a phone number you obtained independently — from the company website or your agent, not from the email containing wiring instructions.
Never send funds based solely on emailed instructions. A legitimate title company will confirm wiring details by phone before your closing.
Be suspicious of any last-minute changes to closing details, especially changes to where or how to send money.
Confirm the name on the receiving account matches your title company's name. Funds should never go to a personal account.
If something feels wrong, stop and call. A legitimate title company will never pressure you to wire quickly or penalize you for verifying.
Ask your title company about their wire fraud prevention protocols before closing. Understanding their process gives you one more layer of protection.
Frequently Asked Questions
What is real estate wire fraud?
Real estate wire fraud is a scheme where criminals intercept or impersonate communications during a real estate transaction to trick buyers into wiring closing funds to a fraudulent bank account. It typically involves compromised email accounts and spoofed messages that appear to come from your title company, lender, or agent.
How common is wire fraud in Texas real estate?
Very common. According to the FBI’s Internet Crime Complaint Center, real estate wire fraud accounted for over $446 million in reported losses in a single year, with the average victim losing more than $100,000. Texas is consistently among the most targeted states due to high transaction volumes and large dollar amounts.
How do I verify wiring instructions from my title company?
Always call your title company directly using a phone number you obtained independently — from the company’s website or from your real estate agent, never from the email containing the wiring instructions. A legitimate title company will confirm wiring details by phone before your closing.
What are the warning signs of a wire fraud attempt?
Key red flags include last-minute changes to wiring instructions, pressure to wire immediately, slightly misspelled email addresses, instructions to wire to a personal account instead of a business escrow account, requests for secrecy, and any wiring details that conflict with what you received during your pre-closing meeting.
What should I do if I sent money to a fraudulent account?
Act immediately. Contact your bank and request a wire recall — banks typically have a 24 to 72 hour window to attempt recovery. Then call Fairfax Title at (214) 521-7771. File a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov and report the fraud to the Federal Trade Commission at reportfraud.ftc.gov.
What can I do to protect my funds at closing?
The most important thing you can do is verify all wiring instructions independently. Call your title company using a phone number from their website — never from an email. Confirm the account name matches the title company. Be skeptical of any last-minute changes, and never wire funds under pressure. Your awareness is the strongest defense against wire fraud.
Should I trust wiring instructions received by email?
You should never trust changed wiring instructions received via email from any title company, lender, or attorney. If you receive an email with new or different wiring details, do not act on it — call the company directly using a phone number from their website to verify. Legitimate changes will always be confirmable by phone.
If You Suspect Fraud
Time is critical. If you believe you've wired funds to a fraudulent account, take these steps immediately.
Fairfax Title(214) 521-7771
Call us immediately if you receive suspicious wiring instructions or believe you may have sent funds to the wrong account.
Your Bank
Contact your bank as quickly as possible and request a wire recall. Time is critical — banks often have only a 24–72 hour window to attempt recovery.
FBI Internet Crime Complaint Center (IC3)www.ic3.gov→
File a complaint online with the FBI's dedicated cybercrime division.
Federal Trade Commissionreportfraud.ftc.gov→
Report fraud to the FTC to help protect others and support federal investigations.
Banks typically have a 24–72 hour window to attempt recovery of wired funds. The sooner you act, the better your chances of recovering your money. Do not wait — call your bank and Fairfax Title immediately.
