Wire Fraud in Real Estate: How to Protect Your Money Before Closing

Real estate wire fraud is one of the fastest-growing crimes in the country, targeting homebuyers at their most vulnerable moment…right before closing.

How the Scam Works

Criminals monitor transactions by hacking into email accounts. They watch the deal develop and send an email that looks like it’s from your closing attorney with “updated” wiring instructions directing your funds to a fraudulent account.

The emails are alarmingly convincing, because they will often include correct names, correct property addresses, and arrive at exactly the right moment. By the time anyone realizes the funds went to the wrong account, the money is usually gone.

How to Protect Yourself

The single most important rule is to never wire money based solely on emailed instructions. Always verify by calling your closing attorney’s office using a phone number you already have on file. At Edwards Law, we provide wiring instructions through secure channels and encourage every client to call and confirm.

Other precautions to consider are the use of strong passwords, enabling two-factor authentication, and to be suspicious of any last-minute changes to wiring details. Legitimate closing attorneys almost never change wiring instructions at the eleventh hour.

What to Do If You Suspect Fraud

Act immediately. Contact your bank and request a wire recall. File a complaint with the FBI’s Internet Crime Complaint Center (IC3) and notify your closing attorney and real estate agent. Every hour that passes reduces the likelihood of recovery.

Wire fraud isn’t a reason to be afraid of the closing process. However, it’s a reason to be informed and vigilant.

How Edwards Law Can Help

At Edwards Law, we take wire fraud prevention seriously. We use secure protocols for all wiring instructions.

Ready to close safely? Call us at 404-341-9377 or email info@edwardslawatl.com.