Wire Fraud
Direct definition
Wire fraud in real estate refers to scams where criminals impersonate a title company, lender, or agent to trick buyers into wiring closing funds to a fraudulent account.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
Fraudsters often intercept email communications and send fake wiring instructions that appear legitimate, directing funds to accounts they control. Once a wire is sent, recovering the funds is often difficult or impossible.
Why it matters
Because wired funds are typically unrecoverable once sent, verifying wiring instructions by phone using a known, independently sourced number is one of the most important steps in a real estate closing.
Where you may see it
- Closing instructions
- Title company communications
- Consumer protection notices
A real-world example
Educational and illustrative only
A common misunderstanding
Wire fraud protections are not automatic just because you're working with a reputable title company — buyers must proactively verify instructions themselves.
Frequently asked
How can I verify wiring instructions?+
Call the title company or closing agent directly using a phone number you find independently, not one provided in the email containing the instructions.
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- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026