5 Wire Fraud Red Flags Every Title Company Should Know
Wire fraud costs the real estate industry $446M+ annually.
Title companies are the #1 target because they handle large wire transfers daily. Here are the five red flags your team needs to recognize.
1. Last-Minute Changes to Wire Instructions
If a buyer, seller, or lender suddenly sends updated wire instructions — especially close to the closing date — treat it as a red flag. Legitimate parties rarely change banking details at the last minute. Always verify changes by calling a known phone number (not one from the email).
2. Emails from Slightly Misspelled Domains
Attackers register domains that look almost identical to legitimate ones. "titlecompany.com" becomes "tit1ecompany.com" or "titlecompany.co". Train your team to hover over sender addresses and check character-by-character before acting on any wire-related communication.
3. Urgency and Pressure Tactics
Phrases like "wire must go out TODAY" or "closing will fall through if funds aren't sent immediately" are classic social engineering. Real transactions have processes. If someone is pressuring you to skip verification steps, that's exactly when you need to slow down.
4. Requests to Use Personal Email
When a party in the transaction asks to switch communication to a personal Gmail or Yahoo account, be suspicious. Business transactions should stay on business email. Personal accounts lack the security controls and audit trails that protect everyone involved.
5. Inconsistent File Numbers or Transaction Details
Fraudulent emails often contain small errors — wrong file numbers, misspelled names, or incorrect property addresses. These mistakes happen because attackers are working from incomplete information. Cross-reference every detail against your records before processing any wire.
What You Can Do Today
Implement a callback verification procedure for all wire instructions. Configure DMARC, DKIM, and SPF on your email domain. Train your team quarterly on phishing recognition. And consider a managed cybersecurity plan that includes dark web monitoring and endpoint protection — so you know if credentials have been compromised before attackers can use them.
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