Common real-estate scams and wire-fraud prevention

Real-estate transactions combine large transfers, public information, multiple professionals, and long email chains. Criminals exploit that complexity by impersonating trusted people and creating urgency. A simple verification routine can prevent catastrophic loss.

Wire fraud is the highest-stakes closing threat

A criminal may compromise or imitate an email account, study a transaction, and send realistic wiring instructions at the moment funds are expected. Logos, signatures, property addresses, and names can all look correct.

Assume emailed wire instructions could be altered. Before sending money, call the escrow or title company at a number obtained independently and read back the bank name, routing number, account number, and exact amount.

Treat changed instructions as a stop signal

Last-minute changes, secrecy, unusual urgency, a new bank, a different beneficiary, or pressure not to call are danger signs. Do not reply to the suspicious message or use its phone number.

If money was sent incorrectly, contact the bank’s fraud department immediately and request a recall or freeze. Then notify the legitimate escrow/title company and report promptly to the FBI Internet Crime Complaint Center and local law enforcement.

Fake rental and listing scams

Scammers copy real listings, advertise an unavailable property, avoid in-person access, and demand deposits through irreversible methods. Others pose as owners or agents.

Verify identity and authority, inspect the property through a legitimate process, check license information when a licensee is claimed, and do not send money merely to “hold” a property before verification.

Equity, foreclosure, and title pressure tactics

Owners in distress may receive unsolicited offers, foreclosure-rescue promises, deed-transfer requests, or demands for advance fees. Some schemes use confusing documents or pressure owners to act immediately.

Do not sign away title, power of attorney, or sale rights without independent legal advice. Verify licenses and consult a HUD-approved housing counselor or attorney when facing foreclosure.

Protect accounts and transaction details

Use unique passwords and multifactor authentication for email. Confirm requests for documents through a known channel. Limit public posting about closing dates, travel, or transaction details that can help an impersonator.

Professionals should explain their secure document process and establish a verification plan at the beginning of escrow.

Use a two-channel verification rule

For money, changes, or sensitive documents, verify through a second channel that was established earlier. An email request should be confirmed by a known phone number; a phone request can be confirmed through a secure portal or in person.

Slowing down is a security control. Legitimate professionals will understand careful verification.

This article is for general educational purposes and is not legal, tax, financial, lending, insurance, inspection, or investment advice. Requirements and programs change, and facts vary by property and transaction. Consult appropriately licensed professionals regarding your circumstances. Edward Rokotyansky is a California REALTOR®, DRE #02199079, with Wiest Realty Inc.