Mortgage Closing Wire Fraud: How to Spot Fake Wiring Instructions

Published by the Modern Lending Solutions editorial team. Last reviewed: October 30, 2026.

Short answer: scammers send homebuyers emails that look like they come from their real estate agent, settlement agent or lawyer, with new instructions for wiring the closing funds to an account the scammer controls. Before you wire anything, confirm the instructions, including the account name and number, in person or by a phone number you got before, never one in the email. If you already sent the money, call your bank right away and ask for a wire recall, then file a complaint with the FBI’s Internet Crime Complaint Center and the FTC. This page covers federal law and agency guidance only; other rules may apply where you live. It is general information, not legal or financial advice.

How the scam works

The CFPB described the scheme this way: scammers try to break into the email of real estate professionals, watch messages with clients to spot upcoming closings, and then send homebuyers spoofed emails, posing as the real estate agent, settlement agent, lawyer or another trusted person, with false instructions for wiring closing funds. It said the scammers can closely copy the email address, phone number and format of messages from your agents (CFPB blog, June 3, 2019, in the CFPB archive, read October 30, 2026; this page may be out of date). The FBI’s Internet Crime Complaint Center (IC3) calls this kind of fraud business email compromise and says it targets both businesses and individuals who transfer funds (IC3: business email compromise, read October 30, 2026).

Warning signs

An email or text says the wiring instructions, the bank or the account for your closing funds has changed.
The sender’s address is slightly different from earlier emails from your agent.
The message gives a new phone number to call to confirm.
The amount does not match the cash to close on your Closing Disclosure.

These signs follow from the CFPB and IC3 guidance above; a message can be fake without any of them.

Before you wire: verify

The CFPB suggested that before closing, you pick two trusted people, such as your real estate agent and settlement agent, talk with them in person or by phone about how the money will be sent, write down their names and phone numbers, and consider a code phrase only they know. Before wiring, confirm the instructions, including the account name and number, in person or using the phone number you agreed on earlier, and avoid phone numbers and links in an email. It also said email is never a secure way to send financial information (CFPB). IC3 says to use a second channel or two-factor authentication to verify requests to change account information.

Check the amount too. Your Closing Disclosure shows the cash to close (12 CFR 1026.38(i)(9), eCFR, text up to date as of October 28, 2026). This example is only for the math, with example amounts:

Item	Example
Down payment	$40,000
Closing costs paid at closing	$12,000
Cash to close: $40,000 + $12,000	$52,000

Compare the amount in any wiring request with the cash to close on your final Closing Disclosure, and ask your settlement agent about any difference by a phone number you trust. See the three-day Closing Disclosure review.

If you already sent the money

Step	What the agency says	Source
Call your bank right away	Contact your bank or wire transfer company immediately and ask for a wire recall; reporting as soon as possible can increase the chance of getting your money back	CFPB
Ask for a recall or reversal	Contact the bank that sent the wire as soon as fraud is recognized to request a recall or reversal and a hold harmless letter or letter of indemnity	IC3
File with IC3	File a detailed complaint at ic3.gov, including the banking information	IC3; CFPB
Report to the FTC	For a bank transfer, report it to your bank immediately and ask it to reverse the payment; report fraud at ReportFraud.ftc.gov	FTC

Sources: CFPB blog, IC3: business email compromise, IC3: file a complaint, FTC: what to do if you were scammed (June 2026, read October 30, 2026) and ReportFraud.ftc.gov. Also tell your settlement agent and lender by a phone number you trust, and keep every email, text and bank record. IC3 says it will never contact you directly for information or money, so be wary of anyone who offers to get your money back for a fee; see recovery scams.

Why a wire is hard to reverse

The CFPB describes a domestic wire transfer as a way to move funds between two U.S. bank accounts (CFPB, last reviewed October 3, 2024, read October 30, 2026; this page may be out of date). The Electronic Fund Transfer Act’s definition of an electronic fund transfer leaves out transfers, other than automated clearinghouse transfers, made by a financial institution for a consumer through a service that moves funds held at Federal Reserve banks or other depository institutions and is not designed primarily to transfer funds for consumers (15 U.S.C. 1693a(7)(B), LII, read October 30, 2026). Regulation E likewise excludes transfers through Fedwire or a similar wire system used primarily for transfers between financial institutions or between businesses (12 CFR 1005.3(c)(3), eCFR). So the Regulation E error rules for electronic transfers (12 CFR 1005.11) do not reach such a wire. The federal remittance transfer rules cover transfers to a recipient in a foreign country (12 CFR 1005.30(c) and (e), eCFR), not a domestic closing wire. Other laws may apply to your case; ask a lawyer about your options.

For scams that use other payment methods, see fake check and overpayment scams and payment app mistakes and fraud.

Questions to ask

Ask your settlement agent: how will you send me wiring instructions, and will you ever change them by email?
Ask your settlement agent: can we confirm the account name and number by phone at a number I already have?
Ask your bank: can you recall this wire, and what do you need from me right now?
Ask your bank: will you contact the receiving bank today, and can I get that request in writing?

Checklist

Write down your agents’ names and phone numbers before closing.
Confirm wiring instructions by phone at a number you already trust.
Never use a phone number or link from an email about wiring.
Match the amount to the cash to close on your Closing Disclosure.
If money went to the wrong account, call your bank at once and file with IC3 and the FTC.

You can also submit a complaint at consumerfinance.gov/complaint.

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Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.

Mortgage Closing Wire Fraud: Fake Wiring Instructions