Buying a home involves several important financial transactions, including transferring funds for your down payment and closing costs. As technology has become a standard part of the real estate process, cybercriminals have increasingly targeted buyers through wire fraud scams.
Understanding how these scams work—and the simple steps you can take to verify information—can help protect your transaction.
Whether you’re purchasing a home in Rockville, Gaithersburg, Bethesda, Potomac, Silver Spring, Frederick, or elsewhere in Maryland, staying informed is one of the best ways to reduce risk.
Jeremy Rosenthal, REALTOR®, helps buyers throughout Maryland, Virginia, and Washington, DC understand every step of the home buying process, including best practices for protecting sensitive financial information before closing.
What Is Real Estate Wire Fraud?
Real estate wire fraud occurs when a scammer attempts to trick a buyer into sending funds to the wrong bank account.
In many cases, scammers impersonate someone involved in the transaction, such as a settlement company or another trusted party, using emails or messages that appear legitimate.
Their goal is to convince the buyer to send closing funds to a fraudulent account.
Common Warning Signs
While every situation is different, some common warning signs include:
- Last-minute changes to wire instructions
- Emails requesting immediate payment
- Unexpected changes to bank account information
- Messages creating a sense of urgency
- Slightly altered email addresses or company names
If something seems unusual, pause and verify the information before taking action.
How Buyers Can Help Protect Themselves
Verify Wire Instructions by Phone
Before sending funds, contact the settlement or title company using a verified phone number from a trusted source—not the number included in an unexpected email.
Be Careful With Email Requests
Treat any email requesting new payment instructions with caution.
If payment information changes unexpectedly, verify it directly with the appropriate party before transferring money.
Double-Check the Recipient Information
Before authorizing a wire transfer:
- Confirm the recipient’s name
- Verify the bank account number
- Review the routing number
- Confirm the amount to be transferred
Taking a few extra minutes can help prevent costly mistakes.
Avoid Public Wi-Fi
When reviewing financial documents or initiating wire transfers, use a secure internet connection whenever possible.
Ask Questions
If you’re uncertain about any instructions, ask your REALTOR®, lender, or settlement company for clarification before sending funds.
What Should You Do If You Think You’ve Been Targeted?
If you believe you’ve received fraudulent payment instructions:
- Do not send funds.
- Contact your settlement company immediately using a trusted phone number.
- Notify your REALTOR® and lender.
- If funds have already been sent, contact your bank as quickly as possible to report the situation and discuss available options.
Prompt action may improve the chances of recovering funds, depending on the circumstances.
Frequently Asked Questions
Will my title company email wire instructions?
Procedures vary by settlement company. Buyers should ask early in the transaction how payment instructions will be delivered and verified.
Is a cashier’s check an alternative?
In some transactions, certified funds such as a cashier’s check may be accepted. Requirements vary, so buyers should confirm acceptable payment methods with the settlement company.
Should I trust emailed payment changes?
Unexpected payment changes should always be verified directly through a trusted contact before any funds are sent.
Key Takeaways
Before sending closing funds:
- Verify all wire instructions.
- Use trusted phone numbers.
- Watch for unexpected changes.
- Confirm recipient information.
- Ask questions whenever something seems unusual.
A few minutes spent verifying information can help protect one of the largest financial transactions you’ll make.
Work With Jeremy Rosenthal
Jeremy Rosenthal is a REALTOR® serving buyers and sellers throughout Maryland, Virginia, and Washington, DC. Whether you’re buying your first home or preparing for closing, Jeremy provides guidance throughout every stage of the transaction, helping clients understand the process, avoid common pitfalls, and make informed real estate decisions.
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