Real Estate Wire Fraud and How to Protect Your Closing Funds
Real estate wire fraud can put your home funds at risk. A fake email may look like it came from your lender, agent, or title company. It may even name the home you plan to buy.
Before you send closing funds, pause and check the details with someone you trust. A short call can help you spot a problem before money leaves your account.
For buyers in Knoxville and across Tennessee, safe steps to send funds should be part of each closing plan.
How real estate wire fraud works
A scammer may pretend to be someone who is part of your sale. The message asks you to send money to an account the scammer controls.
Sometimes the request appears in a known email thread. Other times, it uses a look-alike address or a copied company logo. Those details can make a false message seem real.
The CFPB warns that scammers may send fake wiring instructions while posing as your agent or closing team. For that reason, a known name alone does not mean it is safe to send funds.
Watch for changes and pressure
Treat a last-minute change in where to send funds as a reason to stop. Be especially careful if a message says your closing will fail unless you act right away.
Other warning signs include:
A new bank account for your closing funds.
A request to keep the transfer private.
An email address with a small spelling change.
A new phone number for payment questions.
A link asking for bank passwords or account access.
A message can still be false even if it has no spelling errors. Check what it asks you to do, even if it looks real.
Set up a trusted contact before closing week
Ask your closing team how you will get the bank details. Agree on a phone number you can use to check them. Save it before any request to move money appears.
Set this up with a person you know is part of your closing team. You can do this in person. A number supplied in the same strange email does not give you a safe way to check.
Also ask how to send private documents safely. Use the safe method your team gives you.
Check before sending your funds
Before any wire transfer, call the trusted number you saved. Ask your closing team to check the name on the account and all bank details.
If anything differs from what you expected, stop. Ask the team to check and explain the change first. Do not skip this check to save time.
After sending the funds, ask that same trusted person if the funds arrived. Keep your bank’s transfer record with your closing papers.
Act quickly if you suspect fraud
If you already sent money to the wrong account, call your bank right away. Tell its fraud team what happened and ask about a wire recall.
Next, call your real closing team through the trusted number. File a report with the FBI’s Internet Crime Complaint Center at IC3.gov. Save emails, phone numbers, transfer details, and other records.
A fast report may help the bank get your funds back. There is no promise that it can. Do not wait for a reply from the sender before you seek help.
Ask payment questions early
You should feel comfortable asking your closing team to explain how to send funds. It is better to pause for a clear answer than to rush through a transfer you do not understand.
Planning a Tennessee home purchase? Contact Crossland Title to discuss your plans and how to check where to send your funds. Ask these questions well before the week you close.