Wire fraud
A scam where criminals impersonate the title company by email and trick the buyer into wiring closing funds to a fake account. Always call to verify wire instructions using a phone number you already had.
Your Room opens on going under contract and closing, with the offer and everything before it already ticked.
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See how it worksWhere this comes up in a sale, and what follows
- Loan underwriting (comes before)
Part 1 of 4
Why a seller cares
Criminals watch for closings and send fake wiring instructions that look like the title company's. A seller's proceeds and a buyer's cash to close are both targets, and money wired to a fraudster is almost never recovered.
Part 2 of 4
A simple example
Two days before closing an email arrives from an address one letter off the title company's, with new wiring instructions for your proceeds.
| What arrives | What people do who keep their money |
|---|---|
| An email changing the wiring instructions | Call the title company on a number you already had, never one in the email |
| A rush to wire today | Treat urgency as the warning sign it is |
| Instructions that match what the closer said on the phone | Wire, and confirm the money landed |
Wiring instructions never change by email. A phone call to a known number is the whole defense.
Part 3 of 4
What people get wrong
That it only happens to buyers. Sellers' proceeds are wired too, and a changed account number is the same scam in the other direction.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · read against CFPB: mortgage closing scams · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines wire fraud in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.