How the Scam Works
Criminals hack email threads, mimic the closing attorney, and send fake wire instructions. The buyer wires hundreds of thousands to the wrong account. The money is rarely recovered.
Defense
- At contract: warn buyers in writing about wire fraud.
- Always verify wire instructions by calling a KNOWN phone number.
- Never trust wire instructions sent by email alone.
- Watch for last-minute 'changes' to wire instructions — always a red flag.
- Encourage buyers to verify by visiting the closing attorney in person.
Action Items
- Add a wire-fraud warning to every contract package.
- Verbally warn every buyer at the inspection stage.