The email arrives two days before closing. It looks like every other message in the thread. It says the wiring instructions have changed. It asks you to send the down payment to a new account. That is the whole trick, and it works because it is so dull.

A homebuyer seated at a sunlit kitchen table, seen from behind, comparing a laptop with a printed stack of pages beside it, with bright window light across the table.
A homebuyer at a kitchen table comparing a closing email on a laptop with a printed set of wiring instructions from earlier in the process.

What this scam looks like

Scammers go after homebuyers in the days before closing. That is when a buyer expects to send a large sum by wire, and when a change in plans does not seem strange. The Consumer Financial Protection Bureau has described how criminals use phishing to redirect closing costs and down payments into fraudulent accounts (CFPB).

The FBI's Internet Crime Complaint Center calls this a form of Business Email Compromise. A criminal uses email to pose as a trusted party and redirect a wire transfer. The impersonated party can be someone in the real estate industry or a law firm (IC3).

The numbers are not small. The CFPB reported that these attempts rose 1,100 percent between 2015 and 2017. It estimated losses from them at nearly $1 billion in real estate transaction costs in 2017 alone. For one buyer, the cost could be a life savings.

How the scammer gets into the conversation

There are two common routes. A criminal may break into a real email account. Or a criminal may spoof the sender's email domain, so the address looks nearly identical to the real one (IC3).

Either way, the message can land in a thread you already know. The CFPB notes these schemes are complex and often look like a legitimate conversation with a real estate or settlement agent. You are not reading a strange note from a stranger. You are reading what seems like the next line in a chat you have been following.

Then comes the pitch. The scammer confirms a last-minute change to the wiring instructions, or suggests one. The note is written to sound like a routine update.

Red flags to watch for

Most of these scams lean on a short list of moves. Any one of them is a reason to stop.

  • A last-minute change to wiring instructions, especially one that arrives by email.
  • A push to move money quickly or keep it quiet.
  • A request to send the wire to an overseas bank account.
  • A message that seems to come from your agent, settlement agent or law firm, but may be an impersonation.

The pressure is the tell. The IC3 notes that scammers use the authority of the person they are posing as, or a sense of urgency, to rush the transfer. A real closing has deadlines. It rarely asks you to skip checking with anyone.

Do not trust the sender address alone. It can look right and still be fake.

How to verify before you send money

Start with the phone. The IC3 advises organizations to contact the requester by phone before acting on an emailed payment request, and to verify any change to bank deposit information. The same logic fits a homebuyer.

Use a number you already had or checked on your own. Do not use a number or link from the suspicious email. The sources reviewed here do not say which contact details are the most trustworthy. So ask your settlement provider how it confirms wire instructions, and do that early, before the rush.

The IC3 also suggests requiring two parties to sign off on transfers. A buyer can borrow the habit. Ask a second trusted person to look at any change before money moves. It costs a few minutes.

What to do if you think you have been targeted

If you already sent money, move fast. The IC3 says to contact your originating bank right away and ask for a wire recall. The sources here do not explain how recalls work, how quickly banks can act, or whether money can be recovered. Ask your bank what options exist.

  1. Call your bank and request a wire recall.
  2. File a complaint at www.ic3.gov. The FBI asks for a report regardless of the dollar amount or how long ago it happened.
  3. Save every email, message and record of the transaction.

If you have not sent anything, you are in a better spot. Stop, do not reply to the email, and call your settlement provider using a number you trust.

For questions about your rights or your situation, talk with a qualified attorney or your state regulator. This article is educational only and is not legal, financial or tax advice.