How to Transfer Closing Funds Safely and Avoid Wire Fraud in Florida

Wire fraud targeting real estate transactions is one of the fastest-growing financial crimes in the United States. The FBI's Internet Crime Complaint Center (IC3) reports that real estate wire fraud costs victims hundreds of millions of dollars annually — and the losses are rarely recovered.

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How Real Estate Wire Fraud Works

The most common form of real estate wire fraud is called Business Email Compromise (BEC). Here is how it typically unfolds:

1. The criminal monitors email. Fraudsters compromise the email account of a real estate agent, title company employee, or buyer — often through phishing. They monitor the transaction communications to understand the timeline and the parties involved.
2. The criminal waits for the right moment. As closing approaches, the fraudster watches for the moment when wire instructions will be sent.
3. The criminal sends spoofed wire instructions. The fraudster sends an email that appears to come from the title company with wire instructions that direct funds to a fraudulent account.
4. The buyer wires funds to the fraudulent account. The buyer, believing the instructions are legitimate, wires their down payment and closing costs to the fraudulent account.
5. The funds are moved immediately. Wire transfers are nearly impossible to reverse once the funds have been moved.

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The Golden Rule: Always Verify by Phone

Never wire money based on wire instructions received by email alone — even if the email looks completely legitimate.

Before wiring any funds, call the title company directly at a phone number you independently verified — from the title company's official website or a business card. Do not call a phone number included in the email with the wire instructions.

Confirm: the account name, bank name, routing number, and account number.

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Step-by-Step Wire Safety Protocol

1. Obtain the title company's phone number from an independent source before you receive any wire instructions.
2. When you receive wire instructions (by email or any other method), do not act on them immediately.
3. Call the title company at the independently verified phone number and ask to speak with the closing officer handling your transaction.
4. Verbally confirm every element of the wire instructions.
5. Only after verbal confirmation, initiate the wire transfer.
6. After wiring, call the title company again to confirm they received the funds.

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Red Flags to Watch For

• Wire instructions that arrive unexpectedly or earlier than anticipated
• Instructions that differ from any previously provided information
• An email asking you to change wire instructions at the last minute
• Pressure to wire quickly without time to verify
• An email from a slightly different address than previous communications

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What to Do If You Suspect Fraud

If you suspect you have received fraudulent wire instructions or have already wired funds to a fraudulent account:

1. Contact your bank immediately. Request a wire recall. Speed is critical.
2. Contact the title company at their verified phone number.
3. Contact your real estate agent.
4. File a complaint with the FBI's IC3 at ic3.gov.
5. File a complaint with the Florida Attorney General's office.

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FAQ

Is wire fraud common in Florida real estate?

Yes. Florida is one of the states with the highest rates of real estate wire fraud. The combination of high transaction volumes, large wire amounts, and out-of-state buyers makes Florida transactions attractive targets.

Can I use a cashier's check instead of a wire transfer?

Yes. A cashier's check made payable to the title company is an alternative to a wire transfer and eliminates the wire fraud risk. Discuss the option with your title company.

What if I already wired money to a fraudulent account?

Contact your bank immediately to request a wire recall. Contact the title company, your agent, and file reports with the FBI IC3 and the Florida Attorney General. Act as quickly as possible.

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Have questions about the closing process for your Emerald Coast transaction? I walk every buyer and seller through wire safety protocols before closing day.

— Kinsey Haddock P.A., Broker Associate | Coldwell Banker Realty — Panhandle | License #BK3253849