Quick Answer: The best protection against wire fraud is simple: never act on wiring or payoff instructions that arrive by email, text or a new phone number, and confirm every detail by calling your escrow officer at a number you already know is real. Give escrow your bank details for your proceeds through a verified channel, and ask how they will confirm them with you. If you think money went to the wrong place, call your bank right away, then your escrow officer, and file a report with the FBI’s Internet Crime Complaint Center.
For many people, selling a home brings one of the largest payments they will ever receive. That is exactly why criminals target the end of escrow. Wire fraud schemes use fake emails, spoofed phone numbers and stolen information to redirect money to accounts the thieves control.
Huntington Beach and Orange County sellers are attractive targets because so many have built up large amounts of equity. A long-time owner in Huntington Harbour or Seacliff, or a family selling a home they paid off years ago, may be walking away with most of the sale price. Here is how wire fraud works against sellers and the steps that keep your proceeds where they belong.
How Wire Fraud Targets Home Sellers
Most people think of wire fraud as a buyer problem, where a buyer wires a down payment to a fake account. Sellers face their own versions. These are the most common:
- Redirected proceeds. A fake email that looks like it came from escrow or your agent asks you to “confirm” or “update” the bank account for your proceeds. The account belongs to the criminal.
- Payoff fraud. A fraudster sends escrow a fake payoff statement for your mortgage or home equity line, with new wiring instructions. If it is not caught, money meant for your lender goes to the thief and your loan is still open. My post on paying off your mortgage, HELOC and liens when you sell explains how payoffs normally work.
- Seller impersonation. A criminal pretends to be the owner of a property and tries to sell it, often a vacant lot or a home with no mortgage. More on this below.
- Hacked email accounts. If an agent’s, escrow officer’s or seller’s email is compromised, the thief can watch the transaction and send a message at just the right moment.
When the Wire Fraud Risk Peaks in Your Sale
Criminals time their messages to match the transaction. Knowing where the pressure points are helps you stay alert at the right moments. If you want the full picture of how the weeks unfold, here is what happens after you accept an offer, from acceptance to closing.
| Stage | What can happen | What to do |
|---|---|---|
| Listing goes live | Public listing details tell criminals a sale is coming | Keep closing dates and escrow details off social media |
| Escrow opens | Fake “welcome” emails with new contacts or instructions | Get your escrow officer’s phone number from a trusted source |
| Payoff requests | Fake payoff statements sent to escrow | Tell escrow who your lender is and confirm your loan numbers by phone |
| Final week | Urgent emails asking you to change where proceeds go | Treat any change as fraud until you confirm it by phone |
| Closing day | Pressure to act fast “or the closing will be delayed” | Slow down and call before you do anything |
How to Verify Wiring Instructions and Your Proceeds
The single most important habit is to verify through a channel the criminal does not control. An email can be faked. A phone number in an email signature can be faked. A number you looked up yourself is much harder to fake.
- Get your escrow officer’s phone number early. Use the number from your purchase contract, a meeting in person, or the escrow company’s official website that you typed in yourself. Save it in your phone.
- Ask how instructions will be shared. Many escrow and title companies use secure portals. Ask your escrow officer how they will collect your bank details and how they will confirm them.
- Deliver your bank details carefully. Give them in person, through the secure portal, or by a call you place to the number you saved. Do not reply to an email with account numbers.
- Treat every change as a red flag. Escrow companies rarely change instructions by email. If you get a message saying anything has changed, call your escrow officer before you respond.
- Watch for urgency and secrecy. Messages that push you to act right now, or ask you not to tell your agent, are classic warning signs.
- Confirm receipt. When your proceeds should have arrived, check with your own bank, not just with escrow.
If you would rather avoid a wire altogether, ask escrow whether a cashier’s check or another method is an option. It may take a little longer, but some sellers prefer it. Before closing, it also helps to review your estimated net with your agent so you know roughly what to expect. Here is how a seller net sheet works.
Seller Impersonation Fraud on Vacant or Free-and-Clear Property
A newer scheme involves criminals pretending to be the owner of a property they do not own. They often pick vacant lots or homes with no mortgage, since there is no lender payoff to slow things down. The fake seller hires an agent, communicates only by email or text, and pushes for a quick sale with a remote signing.
The FBI and title industry groups have warned about this pattern, and title and escrow companies have added identity checks in response. Still, owners can take a few steps of their own:
- Keep an eye on your property. If you own a vacant home or a rental, check on it and watch for unexpected signs, visitors or marketing.
- Search your own address now and then. If you see your property listed for sale and you did not list it, call the listing agent and the police right away.
- Ask about recording alerts. Some county recorders offer free notices when a document is recorded under your name. It is worth asking whether the Orange County Clerk-Recorder offers one.
- Keep your contact information current. Make sure the county has your correct mailing address so tax and recording notices reach you.
Protect Your Email, Phone and Information
Most wire fraud starts with information the criminal already has. In addition to verifying instructions, a few basic habits make you a harder target:
- Turn on two-factor authentication for your email and bank accounts.
- Use a strong, unique password for your email, and change it if you ever suspect a problem.
- Do not post your closing date, escrow company or moving plans on social media.
- Be careful with links and attachments, even when a message looks like it came from someone you know.
- Avoid sending sensitive documents over public Wi-Fi.
Long-time owners, including many downsizing after decades in the same home, are often targeted because they have the most equity at stake. If you are helping a parent sell, make sure they know these rules too. My post on downsizing and senior relocation for long-time Huntington Beach homeowners covers other parts of that move.
What to Do If You Think Money Was Sent to the Wrong Place
Speed matters more than anything. The sooner your bank acts, the better the chance of stopping or recovering the funds. If something feels wrong, act immediately and in this order:
- Call your bank’s fraud department. Ask them to contact the receiving bank and request a recall of the wire.
- Call your escrow officer. Use the number you saved, not one from the suspicious message.
- File a report with the FBI. Submit a complaint through the FBI’s Internet Crime Complaint Center (IC3) and consider calling your local FBI field office.
- Tell your agent. Your agent can help coordinate with escrow and the other side.
- Secure your accounts. Change your email and banking passwords, and turn on two-factor authentication if it is not already on.
- Keep every record. Save the emails, texts, phone numbers and wire confirmations. Investigators will need them.
What I Tell Sellers Before Closing
I tell sellers the same thing at the start of escrow: no one on your transaction will ever change wiring instructions by email. If you get a message saying otherwise, assume it is fraud and call before you do anything. That one rule protects you from the most common schemes.
I also remind sellers that it is never rude to double check. A legitimate escrow officer would much rather take an extra phone call than watch your proceeds disappear. Slowing down for five minutes is worth it.
Key Takeaways
- Wire fraud targets sellers through fake proceeds instructions, fake payoff statements and seller impersonation.
- Never act on wiring or payoff changes sent by email or text.
- Verify everything by calling your escrow officer at a number you found yourself.
- Owners of vacant or free-and-clear property should watch for signs someone is posing as them.
- If money is misdirected, call your bank immediately, then escrow, and file a report with the FBI’s IC3.
Frequently Asked Questions
Will my escrow company ever change wiring instructions by email?
It is very unusual. Treat any emailed change as suspicious and confirm by calling your escrow officer at a number you already trust.
How do sellers usually receive their proceeds?
Most sellers receive a wire to their own bank account, though a check may be an option. Ask your escrow officer which methods they offer and how they verify your details.
What is payoff fraud?
It is when a criminal sends escrow a fake payoff statement for your mortgage or home equity line with their own wiring instructions. Escrow normally confirms payoffs directly with the lender, and you can help by confirming your lender and loan details by phone.
Can wire fraud money be recovered?
Sometimes, especially if the bank acts quickly. Call your bank’s fraud department right away and file a report with the FBI’s IC3.
Is my home at risk of seller impersonation fraud?
The risk is higher for vacant lots and homes without a mortgage, especially if the owner lives elsewhere. Checking on the property and watching for unexpected listings helps you catch problems early.
Next Step
If you are getting ready to sell, reach out and I will walk you through how your proceeds will be handled before escrow even opens. Knowing the plan ahead of time makes it much easier to spot a message that does not belong.
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Message me. You get me, not a team.
Jennifer Thomas and Ian Wilfert are Huntington Beach real estate partners at Seven Gables Real Estate, serving buyers and sellers across Huntington Beach and Orange County. Jennifer Thomas is a Huntington Beach real estate broker with 40 years of experience, over 1,100 closed transactions, and a reputation as one of Orange County’s most trusted listing agents and senior relocation specialists. Ian Wilfert specializes in first time home buyers, guiding clients through every step of the buying process in Huntington Beach and surrounding Orange County communities. Together Jennifer and Ian bring decades of established market knowledge and first time buyer expertise to every client they serve in Huntington Beach and Orange County. For the fastest response, contact Ian directly at 714-887-9560 or ianw@sevengables.com. Jennifer can also be reached at Jennifer@JenniferThomas.com or 714-415-5052. Visit ianwilfert.com. Jennifer Thomas DRE 00931959 | Ian Wilfert DRE 02096787.
