Mortgage wire fraud: how to protect your down payment and closing funds
The short answer
In mortgage wire fraud, criminals send fake emails that appear to come from your title company, agent, or lender with new wiring instructions, then steal the down payment and closing funds you send. Protect yourself by calling your title or escrow company at a phone number you verified independently before wiring any money, and treat any email that changes wiring instructions as a red flag.
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Warning signs
- An email saying wiring instructions have changed, often at the last minute.
- Pressure to wire quickly or keep it confidential.
- An email address or domain that is slightly off from earlier messages.
- A phone number inside the suspicious email that you are told to call to confirm.
How to wire safely
- At the start of your transaction, get your title company's phone number from its official website or your purchase contract, not from an email.
- Before wiring, call that number and confirm the account and routing numbers verbally.
- After sending, call again to confirm receipt.
- Ask whether a cashier's check or another method is available if you are uneasy.
If you think you sent money to a scammer
- Call your bank immediately and ask it to recall the wire. Speed matters most.
- Contact your title company and real estate agent.
- File a complaint with the FBI's Internet Crime Complaint Center at ic3.gov.
- Report it to local law enforcement.
Common questions
Will my title company ever change wiring instructions by email?
Legitimate companies rarely change instructions and usually warn clients never to trust emailed changes. Always verify by phone at a known number.
Can wired money be recovered?
Sometimes, if you act within hours. The faster you contact your bank, the better the chance.