How to Avoid Real Estate Wire Fraud Before a Maryland Settlement

By Dawn Riley, Associate Broker, Realtor and Master Certified Negotiator | Published July 20, 2026

Wire fraud can turn a normal settlement into a financial disaster. Buyers and sellers should verify every instruction through a trusted phone number before money moves.

Understand How the Scam Works

Criminals may gain access to an email account used by a buyer, seller, agent, lender or title company. They watch the transaction, learn the names and timing, then send believable instructions that redirect closing funds.

The message may copy a real email signature, use the property address and arrive at exactly the moment the buyer expects wiring information. That is why professional-looking email alone is not proof that the instructions are legitimate.

Verify Instructions Using a Known Number

Call the title company using a phone number you already know, one found on its official website or one provided in person. Do not use the phone number inside a new email that asks you to change or confirm wiring instructions.

Read the bank name, account number and routing number back to the title company. If anything changed, stop. Legitimate professionals should expect this verification step and should never pressure you to skip it.

Treat Last-Minute Changes as a Red Alert

A message claiming that the account changed, the title company has a new bank or the funds must be redirected should trigger immediate independent verification. Urgency is one of the tools scammers use to prevent people from slowing down and checking.

The Consumer Financial Protection Bureau specifically warns consumers about mortgage closing scams involving fake wiring instructions. The safest rule is simple: no change is accepted through email alone.

Protect Your Email Account

Use a unique password and multi-factor authentication. Review account forwarding rules and recovery information. Avoid discussing sensitive closing details over public Wi-Fi or on a shared device.

Be cautious with attachments and links, especially messages that ask you to log in again. A compromised mailbox can expose more than one transaction and may let a criminal imitate a trusted participant.

Sellers Need Protection Too

Sellers may be asked to provide bank information for their proceeds. That information should be delivered through the title company’s secure process and independently verified. A seller should be suspicious of any email asking for new account details at the last minute.

Buyers should also know what to expect after their offer is accepted. Our final walkthrough checklist helps organize the other settlement-week tasks.

Send Funds Early Enough to Verify

Do not wait until the final minute when avoidable time pressure can lead to mistakes. Ask the title company when it wants the funds and what verification procedure it uses.

Your bank may have its own wire cutoff time, limits or in-person requirements. Confirm those details before settlement week so the process is not being improvised under pressure.

Act Immediately if You Suspect Fraud

Call your bank or wire provider immediately and request a recall or fraud hold. Then contact the receiving financial institution, the title company and law enforcement. The chance of recovery may decrease quickly as funds move through other accounts.

The FBI directs victims and businesses to report internet-enabled fraud through the Internet Crime Complaint Center. Keep the emails, headers, account information and transaction records.

Build Verification Into the Transaction

Safe settlement practices should be discussed before anyone sends funds. Buyers and sellers should know who will send instructions, how those instructions will be delivered and which phone number will be used to verify them.

Strong real estate representation is not only about price. It also means anticipating risk, setting clear procedures and making sure clients understand what must happen before they approve a transfer.