Before You Wire a Dime: How Scammers Pose as Real Estate Agents to Steal Closing Funds

Picture this. You're three days from closing on your new home. Your phone buzzes with an email from your real estate agent saying that the title company changed banks, and here are the updated wiring instructions for your down payment. The message uses your agent's name, references your property address, and even mentions the closing date. You wire the money.

Two days later, at the closing table, no one has received your funds. Your agent never sent that email. And the money is gone.

This is one of the most common and costly scams in real estate today, and it targets buyers and sellers at the moment they're most excited, most rushed, and most trusting. The good news is that it's also one of the most preventable. Here's how it works, what to watch for, and how to protect yourself.

How the scam works

Scammers don't need to break into a bank. They just need to convince you to send your money to the wrong place. Most schemes follow the same pattern.

It usually starts with a real transaction. Listings, public records, and that "We're under contract!" or “Clear to Close!” post on social media tell criminals who's buying, who's selling, and roughly when the deal will close. From there, they find a way into the conversation. Often they break into an email account somewhere in the transaction chain, whether it belongs to the agent, the client, the lender, or even the title company, and simply watch. They study how everyone writes - the tone, the sign-offs, the email signatures, the rhythm of the deal. Other times they set up a look-alike address that's off by a single letter, close enough that a busy person won't notice.

Then, usually 24 to 48 hours before closing, when everyone is stressed and everything feels urgent, they make their move. A message arrives that appears to come from your agent, your title company, your lender, or your attorney. It knows your address and your closing date, and everything about it looks right except the bank account number. It explains that the wiring instructions have changed because of a new bank, an audit, or some problem with the original account. And it's urgent! “Send today, or closing gets pushed!” That pressure is the whole point, and it keeps you from stopping to check.

And it's no longer just email. Scammers now use AI to clone voices and stage convincing deepfake video calls, so a follow-up "confirmation" can sound and look exactly like your agent approving the change. The only confirmation you can trust is a call you place yourself, to a number you found on your own.

Once a wire lands in a scammer’s account, the money is often moved again within hours. Recovery is possible only if you act very fast, and even then, it isn't guaranteed.

Red flags to watch for

Most of these schemes leave clues if you know where to look.

The biggest one is any change to wiring instructions at all. Title companies rarely change banking details in the middle of a transaction, so treat every "update" as suspect until you've confirmed it by phone. Be just as wary of instructions that arrive only by email or text, especially from someone other than the title company, and of any message that pushes you to hurry or asks you not to call the office.

Small details give scammers away, too. Tap the sender's name to see the full email address, and look for an extra letter or an unfamiliar domain. Notice if someone who always calls is suddenly email-only, or if their messages sound stiffer than usual. And look at where the money is going. Your closing funds belong in the title company's escrow account, not with an individual or a business name you don't recognize.

How to protect your closing funds

The single most important habit is to verify by phone, using a number you already know is real. Never use a phone number from the email or text that contains the wiring instructions. Scammers include their own numbers and will happily "confirm" their own fake details.

Get our official phone number at the very start of your transaction, from our website at titlestream.com (504-525-1491) or from your closing documents, never from an email. Before you wire anything, call your Title Stream office on that number and have us confirm every single wire detail. If you ever get an email saying the wire instructions have changed, call us right away, no exceptions.

After you send the wire, call once more to make sure it arrived. It's also worth asking whether a cashier's check or other certified funds will work for your closing.

A few everyday habits help, too. Hold off on posting about your purchase until after closing; celebrate the keys, not the contract. And protect your email with a strong, unique password and two-factor authentication, since a hacked inbox is where many of these schemes begin.

Our promise at Title Stream

Title Stream will never change our wiring instructions by email or text in the middle of a transaction and not ask you to call us to verify before wiring funds. If you ever receive a message, from anyone, saying our banking details have changed, it is fraud. Call your Title Stream office directly using the number on our website before you take any action. We would always rather get ten "just checking" calls than have one client lose their savings.

If you think you've been targeted

Minutes matter. If you've already sent a wire you're unsure about, act fast.

Call your bank first and ask them to recall the wire and contact the receiving bank. Then call your title company and your agent, using numbers you know are real. File a complaint with the FBI's Internet Crime Complaint Center at ic3.gov, ideally within 24 hours. That first day is when the FBI has the best chance of recovering funds, and success rates drop dramatically after it. File a report with your local police as well. Don't delete anything. The emails, texts, and call logs are evidence investigators will need.

If you received suspicious instructions but haven't sent money, don't reply to the message. Forward it to your title company and agent, then call them to let them know.

A note for our real estate partners

Agents are often the face scammers borrow, and your clients are counting on you to warn them. Surveys show 71% of consumers expect their agent to educate them about wire fraud before closing. If you're not having that conversation now, your clients are sitting ducks, and your reputation is on the line.

Tell clients early and often that wiring instructions only come from the title company and must always be verified by phone. Add a wire fraud warning to your email signature, secure your accounts with two-factor authentication, and loop us in the moment anything looks off. We've got your back, and we're glad to share client-ready materials with your team.

When in doubt, pick up the phone

Buying or selling a home is a big moment, and the last thing anyone wants is for it to end in loss. A two-minute phone call is the easiest, most effective protection there is.

Have a question about wiring funds, or want to confirm instructions you've received? Contact your nearest Title Stream office in Metairie, Uptown, Marigny, Northshore, Destrehan, or Baton Rouge. We're here to make sure your closing day is all about the keys.