The largest check most buyers ever write is the cash to close, and it usually moves by wire in the final days before settlement. That is exactly why criminals target it. The pattern is consistent: a fraudulent email, arriving in the middle of a real conversation with your title company or agent, says the wiring instructions have changed. This guide explains how the scheme works, what federal agencies tell consumers to do, and a short routine that fits any Richmond-area purchase or sale.
How the scheme works
The FBI calls this business email compromise. In a June 2023 public service announcement, its Internet Crime Complaint Center describes criminals taking over legitimate business or personal email accounts, often through social engineering or intrusion, to cause unauthorized transfers of funds. It reports roughly $50.9 billion in exposed losses from October 2013 through December 2022, across 277,918 domestic and international incidents, and notes rising activity targeting real estate transactions. Those totals cover all business email compromise, not only home closings, so treat them as a measure of how common the technique is rather than a count of stolen down payments.
In a closing, the fraud usually looks ordinary. The message uses the right names, the right property address and often the right logo, because the criminal has read earlier emails in the thread. The only thing that changes is the account number. Because the sender appears to be someone you already trust, the instruction feels like routine paperwork instead of a request for money.
A verification routine that works
The Consumer Financial Protection Bureau’s page on mortgage closing scams gives the clearest consumer advice, and it can be turned into five steps.
Pick two trusted contacts early
The CFPB suggests choosing two trusted people, such as your agent and your settlement agent, early in the process, and discussing the closing and money-transfer steps with them in person or by phone instead of by email. Write down their names and direct phone numbers when you first meet them. Our guide to who is at a Virginia closing table explains who those people are.
Treat any email with instructions as unverified
The CFPB’s advice on instructions in email is blunt: never follow them. Scammers can copy real email addresses and phone numbers, so a phone number in a message is not proof of anything. The FBI adds that you should check sender addresses closely for misspelled domains and look at the full address, especially on a phone.
Call the number you wrote down
Before you send funds, call the settlement agent at the number you recorded earlier, not one from the email, and read the account details back. Do this even if the instructions are unchanged. If an email ever says they have changed, treat that alone as a warning sign and call before doing anything else.
Want the closing steps in order?
Our closing-timeline checklist lays out who you will hear from and when, so you know which messages to expect. Ask our team for a copy.
Do not send financial details by email
Both agencies advise against emailing account numbers, login credentials or identity documents. If a lender or title company needs a document, ask for a secure upload link, and confirm by phone that the link is real before using it.
Watch your own timeline
The riskiest window is the final week, when instructions and cash-to-close figures are finalized. Your Closing Disclosure must reach you at least three business days before closing, which gives you time to verify the amount and the instructions at the same time. Our guides to what to avoid between approval and closing and to underwriting conditions after contract describe what else lands in your inbox during those weeks.
A cash purchase puts the whole price into a single wire, and a buyer who is bringing proceeds from a previous sale is often moving money on a deadline, both of which make the call-back step more important, not less. If your funds come from more than one source, verify the instructions for each transfer separately and keep a short written note of who you spoke with and when.
Red flags and questions for your settlement agent
At your first meeting with the title company or closing attorney, ask how they send wiring instructions, whether they will ever change them by email, whether they use a secure portal for documents, and which phone number reaches the person handling your file. Writing the answers down turns the CFPB’s “trusted contacts” advice into something you can check against later.
Some messages should stop you immediately: instructions that arrive or change by email; pressure to wire the same day; a request to send funds to an individual or to a bank that does not match the title company; a sender address that is one character off from the real one; or a message telling you not to call because the office is “closed” or the person is “traveling”. A genuine closing office will take your call and will not object to being asked to confirm. Under the federal rules the CFPB’s home-buying guidance explains, your loan estimate and closing disclosure also list the figures you should expect, so an amount that does not match them is a reason to call before you send anything.
Sellers are targets too
Money flows the other way at the end of a sale, and the same trick works in reverse. A seller who is asked to send a payoff or to redirect proceeds should confirm by phone. A fake payoff letter or a changed proceeds account is the seller-side version of the buyer’s scam. Our guide to the mortgage payoff at a Richmond closing explains what a genuine payoff letter contains, which makes a fake easier to spot.
If you think you have been targeted
Speed matters. The CFPB and the FBI both say to contact your bank or wire provider immediately and ask for a wire recall, and to file a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov. The FBI asks for a complaint regardless of the amount. Then tell your title company and agent by phone so they can warn the other parties, and change the passwords on your email account from a device you trust.
Where this matters in the Richmond region
The routine is the same whether you are buying a condo in the City of Richmond, a new build in Chesterfield County or a house in Henrico County. If you are weighing the timeline, our guide to how long it takes to close on a house in Richmond shows when the wire usually happens. You can also see how we guide buyers or browse current homes.
Keep the closing checklist handy
The closing-timeline checklist includes the step where you confirm wire instructions by phone. Ask our team for a copy before your contract date.
Questions about wire fraud and home closings
What is wire fraud in a home purchase?
A criminal sends fake wiring instructions that appear to come from your title company or agent, usually after taking over a real email account. The FBI calls the broader technique business email compromise.
How do I verify wire instructions?
Call your settlement agent at a phone number you recorded earlier, not one in an email, and read the account details back before sending funds. The CFPB advises never following instructions contained in an email.
Can a phone number in the email be trusted?
No. The CFPB warns that scammers can copy email addresses and phone numbers, so confirm using a number you obtained in person or earlier by independent means.
What should I do if I already sent the wire?
Contact your bank or wire provider immediately and ask for a wire recall, then file a complaint at ic3.gov and call your title company and agent. Acting quickly improves the chance of recovery.
Should I email my bank account or ID to the title company?
Avoid it. Both the CFPB and FBI advise against sending sensitive financial information by email. Ask for a secure upload link and confirm by phone that it is genuine.
Does the Closing Disclosure help me catch fraud?
It gives you the cash-to-close amount at least three days before closing, so you can compare it with what you are asked to wire and verify both by phone.
Are sellers at risk too?
Yes. A fake payoff letter or a changed proceeds account is the seller-side version of the scam, so confirm any change by phone with your settlement agent.
Do the FBI’s $50.9 billion figures apply to home closings only?
No. The figure covers all business email compromise from October 2013 through December 2022. The FBI says real estate targeting has been rising within it.
