A real estate closing moves large sums of money by wire, and that is exactly what makes it a target. Wire fraud is the one risk at closing that can cost you everything in a single transfer. Let me explain how it works and, more importantly, how I keep your funds safe.
Written by Anthony I. Shin, Esq., Principal and real estate attorney at Prime Title & Escrow
Most of the risks at a closing can be fixed if something goes wrong. A redirected wire often cannot. That is why I treat wire fraud prevention as one of the most important parts of my job, and why I want every client to understand it before closing day.
A criminal impersonates a trusted party in your closing, often the title company, your agent, or your lender, then sends or changes wire instructions by email so your money lands in their account. The FBI reports these scams move fast and are hard to reverse, which is why a few minutes of verification is the best protection you have.
How big the problem is
This is not a rare event. In its 2025 annual report, the FBI Internet Crime Complaint Center recorded more than one million complaints and over $20.9 billion in reported losses, a 26 percent increase from the year before. Business email compromise, the category that covers most real estate wire fraud, was the second costliest crime by total losses at $3.04 billion, and the FBI notes that 86 percent of those funds moved by wire transfer or ACH. Real estate closings remain a consistent target precisely because they involve large, time sensitive transfers between parties who often communicate by email.
How the scam works
The pattern is consistent. A criminal gains access to email in the transaction, watches for an upcoming closing, then sends a message that looks like it came from a trusted party, carrying wire instructions that route your funds to a fraudulent account. The FBI warns that these messages are increasingly convincing, with criminals now using artificial intelligence to mimic a real person’s writing and even clone a voice on the phone. I break down the anatomy of the scam in how real estate wire fraud works.
How I protect your funds
My side of the protection is built into the process. I give you my wiring instructions through a secure, verified channel, I do not change them by email, and I confirm the receiving details independently. I describe these safeguards in how I protect your funds in escrow, and they are reinforced by Virginia law, which requires recording and disbursement on a tight timeline under the Wet Settlement Act.
How you send funds safely
Your side is just as important, and it is simple. Verify every wiring instruction by calling a known phone number for my office, never a number printed in an email, and treat any last minute change as a warning sign. The American Land Title Association recommends exactly this. I lay out the steps in how to send your closing funds safely and the warning signs in the red flags of wire fraud.
The single most valuable habit is to pause before sending. If wire instructions arrive or change by email, if there is sudden urgency, or if anything feels off, stop and call me at (703) 552-4155 before moving any money. A two minute phone call has saved buyers from losses that could never be undone. If you think funds have already gone to the wrong place, see what to do if you have been a victim and act within hours.
Protection on both sides of the state line
These safeguards apply on residential and commercial closings across Virginia and West Virginia. Fraud does not respect a state border, and neither does my approach to stopping it, as I describe in wire fraud and escrow safety in West Virginia. An owner’s title policy also adds a layer of protection against related fraud such as forgery and seller impersonation, which I cover in how an owner’s policy helps against fraud.
Wire fraud is frightening because of how fast and final it can be. The good news is that it is also highly preventable, and prevention is something we do together. I will make sure you know exactly how I send instructions and what to verify before you move a dollar.
Send me your contract and I will walk you through exactly how I handle wiring instructions so your funds stay safe.
Get Your Free Quoteor call (703) 552-4155Frequently asked questions
What is real estate wire fraud?
Real estate wire fraud is a scam in which a criminal impersonates a trusted party in your closing, usually the title company, your agent, or your lender, and sends or changes wire instructions so your funds go to their account instead. The FBI reports these scams move quickly and are difficult to reverse, which is why prevention matters more than recovery.
How common is wire fraud in real estate?
It is a consistent target. In its 2025 annual report, the FBI Internet Crime Complaint Center recorded more than one million complaints and over $20.9 billion in losses, a 26 percent increase from the prior year. Business email compromise, the category that covers most real estate wire fraud, was the second costliest crime by losses at $3.04 billion, and 86 percent of those funds moved by wire or ACH.
How can I protect my closing funds from wire fraud?
Verify every wiring instruction by calling a known, trusted phone number for my office, never a number from an email, and treat any last minute change in instructions as a red flag. Confirm the details before you send and call again right after to confirm the funds arrived. I walk every client through this.
What should I do if I think I have been defrauded?
Act within hours, not days. Call your bank immediately and ask for a wire recall and the FBI Financial Fraud Kill Chain, notify everyone in the transaction using known phone numbers, and file a report at ic3.gov. The recovery window is often as short as 24 hours.
Does title insurance protect against wire fraud?
An owner’s title policy does not reimburse a wire you personally sent to a scammer, but it does protect against related fraud such as forgery in the chain of title and certain seller impersonation schemes. The strongest protection against a redirected wire is prevention, which is the focus of my closing process.
This article is general information about wire fraud and escrow safety in Virginia and West Virginia. It is not legal or financial advice for your specific transaction, and statistics come from the cited FBI and industry sources as of their publication. If you suspect fraud, contact your financial institution and me immediately.