WIRE FRAUD in Real Estate Transactions is REAL-DON'T RISK YOUR DEPOSIT

When I meet with buyers and sellers, I always stress one critical point: wire fraud prevention is not optional — it’s essential. Hackers today are incredibly sophisticated. They infiltrate email chains, especially within small to mid-sized law firms, and patiently wait for the perfect moment to redirect deposits, payoffs, or closing funds.  They also target municipalities, schools and  healthcare facilities. 

Earlier this year, one of my own clients was targeted. A hacker attempted to divert his mortgage payoff to a fraudulent account. Thankfully, the client noticed something was off and sounded the alarm — but it was dangerously close to being a catastrophic loss.

And this isn’t an isolated incident. There is a recent story where the Spotswood NJ School district was scammed out of 3 million dollars simply by spoofing two employee emails.  This  story out of Spotswood is another painful reminder. A $3 million loss may have been thwarted had the two employees actually had a conversation to confirm wire instructions or other aspects of the transaction. One conversation could have prevented the entire situation.

We have to ask ourselves: How have we become so comfortable handling transactions of this size without verbal confirmation? Hackers study communication patterns, mimic writing styles, copy signatures, and even use nicknames to appear legitimate. Their goal is to keep you unsuspecting — and it works far too often.

To help protect yourself, here are some essential safeguards:

Helpful Tips to Avoid Wire Fraud Scams

🔐 1. Always verify wiring instructions by phone.

Use a known, trusted phone number—never one provided in an email. Confirm the account number and routing number verbally before sending any money.

📞 2. Never rely on email alone for financial details.

Emails can be intercepted, altered, or spoofed — even when they appear to come from your attorney, agent, or lender.

📁 3. Be suspicious of last-minute changes.

Any “updated wiring instructions” or “new account number” should be treated as a major red flag.

👀 4. Check email addresses carefully.

Hackers often change one letter or add a symbol to impersonate a trusted contact.

🚫 5. Don’t click links or download unexpected attachments.

If something looks off, pick up the phone and confirm.

🔄 6. Use secure portals whenever possible.

Many lenders and attorneys now use encrypted platforms to share sensitive information — take advantage of them.

🔍 7. Trust your instincts.

If something feels unusual, rushed, or inconsistent with prior communication, stop and verify.