Cyber fraud has become an increasing risk in real estate transactions, particularly during the closing process. Criminals often attempt to exploit email communication and the transfer of funds to redirect money without authorization. Understanding how these schemes work—and how to respond—can help reduce the risk of financial loss.

At Texas Title Assurance, we take a proactive approach to security and use established tools and procedures designed to help protect our clients throughout the transaction.

How Wire Fraud Typically Occurs in Real Estate Transactions

Wire fraud schemes often follow a predictable pattern and rely on impersonation and urgency. Common steps may include:

Compromised Email Accounts

Fraudsters may gain unauthorized access to the email account of a party involved in the transaction, such as a buyer, seller, real estate agent, lender, or title company representative.

Fraudulent Payment Requests

Once access is obtained, the criminal may send messages that appear legitimate, instructing a recipient to change wiring or payment details without the knowledge of other parties.

Funds Sent to an Unauthorized Account

If instructions are not verified, funds may be transferred to an account controlled by the fraudster instead of the intended recipient.

Delayed Discovery

In many cases, the issue is not identified until later in the transaction, sometimes as late as closing day, when recovery of funds can be difficult or impossible.

Best Practices to Help Prevent Wire Fraud

While no system can eliminate risk entirely, following these best practices may significantly reduce exposure:

Be Cautious With Wiring Instructions

Question any email or message that includes wiring or payment instructions, especially if it reflects a change from previous information.

Verify Before Sending Funds

Always verify wiring instructions by contacting your title company using a known, trusted phone number. You may also wish to confirm details with your financial institution before initiating a transfer.

Confirm Receipt After Sending Funds

After funds are sent, promptly confirm with the receiving party that the transfer was received and credited correctly.

Act Quickly if Something Appears Unusual

If anything seems unexpected or incorrect, contact your bank, lender, and title company immediately. In some situations, contacting appropriate law enforcement or federal authorities may also be necessary.

Additional Protection Through Secure Technology

To further reduce the risk of wire fraud, Texas Title Assurance uses ClosingLock, a secure communication platform designed specifically for the real estate industry. ClosingLock provides a verified channel for sharing wiring instructions and payment-related information, helping reduce reliance on unsecured email communication.

By combining secure technology with internal procedures and client education, we aim to add an additional layer of protection throughout the closing process.

Staying Informed Throughout the Closing Process

Real estate transactions often involve significant financial decisions, making them a target for cybercrime. Remaining informed, verifying information through trusted channels, and asking questions when something seems unclear are important steps in protecting your transaction.

Texas Title Assurance is committed to promoting secure practices and clear communication. If you have questions about wiring instructions, payment procedures, or secure communication methods, we encourage you to contact our office directly before taking action.