Wire Fraud Warning: Collin’s Home Buyers Lost Every Penny
What is wire fraud? Here’s everything you need to know.
Wire fraud is one of the fastest-growing scams in real estate. If you follow us on Instagram stories, you may have already seen what happened to Collin’s buyers. They thought they were wiring funds safely for closing, but instead, every penny went straight into the hands of scammers. 😩 Because of it, they couldn’t move forward with their dream home. 💔
Here’s exactly what happened…
“On the day of closing, our realtor called with news that still makes my stomach drop. The buyers had wired ALL their money… closing costs and their large down payment (we’re talking hundreds of thousands of dollars) to a SCAM account. 😭 These wire fraud scams are wild because they look so legit. The buyers thought they were following all the right steps, but they ended up getting tricked by fake wire instructions that sent their money straight into a fraud account.
At first the bank told them the funds were frozen and would be returned, so we all thought it was safe. But then we found out the money had already been dispersed into a fraud account overseas. Just like that, it was gone. 💔 I can’t even begin to imagine the devastation. Their hard-earned savings, their dream of this home, wiped out in an instant. My heart just breaks for them. 😢
I’m sharing this as a HUGE reminder: these scams are everywhere. Always double-check the email address. Scammers use sneaky addresses that look almost identical to the real ones (like one letter off). And always call your title company directly before wiring money. Don’t rely only on emailed instructions. Pick up the phone and call the title company or escrow office using the number on their official website. Protect yourself, this can happen to anyone.” – Collin
Unfortunately, wire fraud scams happen all the time, so here’s everything you should know to stay informed:
What is wire fraud?
Wire fraud is a type of financial scam that uses electronic communications (email, phone, text, or online messages) to trick someone into sending money or sensitive information.
In real estate, wire fraud often involves criminals posing as title companies, realtors, or lawyers, then convincing buyers to send closing funds to a fraudulent bank account.
Wire transfers are often instant and irreversible.
Wire Fraud Statute
Under 18 U.S.C. § 1343, wire fraud is a federal crime, punishable by up to 20 years in prison (or 30 years if a bank is involved).
While the law takes this crime seriously, prosecution doesn’t guarantee victims will get their money back — which is why prevention is so critical.
Wire fraud examples
- Real estate scams: Criminals hack into email chains between buyers and realtors, then send fake wiring instructions right before closing.
- Business email compromise: Fraudsters impersonate a company executive and instruct employees to wire funds to a “vendor” account.
- Romance scams: A scammer builds trust with someone online, then asks for urgent wire transfers.
- Lottery or prize scams: Victims are told they “won” but must wire fees or taxes to collect.
How to prevent wire transfer fraud…
Here are a few ways you can protect yourself:
- Always verify wiring instructions by calling the title company, lawyer, or realtor directly at a known, trusted phone number.
- Double-check email addresses for slight misspellings or unusual changes.
- Be cautious with “urgent” requests – scammers rely on creating panic.
- Ask about secure portals for sending and receiving financial instructions.
- Enable multi-factor authentication on your email to reduce the risk of being hacked.
Wire fraud scams are devastating. As Collin’s story shows, they can strip away years of savings in an instant. By understanding what wire fraud is, how these scams work, and how to prevent them, you can protect yourself and your family from the same heartbreak.
Oh my, how devastating this must have been. I feel so bad for everyone affected. My heart hurts for them.
I’m aghast. Also want to earn people about posting information on social media, like “found our dream house” and “got an offer” which tells fraudsters a lot more than you want them to know. “Moving day” is also a top that houses will be empty for squatters.
And posting that you are on vacation also makes your house a target. Wait until you get home to post about your trip.
I can’t image what the buyers went through. And there’s no recourse for this?? Just awful.
I’m thinking it’s the settlement companies’ or realtors’ email accounts that are getting hacked. It wouldn’t be very effective to hack into zillions of random people’s email accounts in the slim hope of finding messages indicating someone was JUST about to buy a house.
It’s the realtors and settlement companies (whoever typically sends the real money transfer info) who need to beef up their messaging security — majorly. Shame on them.
Though not even close to this amount, but I just want to share one that I fell for. I received a text on paying a toll. I had gone through a toll while on vacation so I just thought sweet this makes it easy. Fortunately I caught on right after I paid it so I was out around $20 but was able to cancel may card directly after.
Physical check and cashiers check is the way to go. Also, it’s worth the money to hire an attorney for real estate purchases.
BEWARE of un-requested email inquiries from “We Buy Houses”. They will send you E-Docs to sell your home at an agreed price, THEN pressure you into signing a closing E-Doc selling your home for $10. , then quickly sell the home to another company , and you lose the home , get evicted and never receive a dime. FBI says these real estate fraudulent title stealing scams are one of the leading crimes, especially affecting senior citizens.
Thank you for sharing! Fraud is rampant. The more we talk about it the more it will be on our minds and we can be vigilant. The company I work for is constantly having to battle fraud. It’s sad… fraudsters are constantly thinking of new ways to cheat you. Be safe everyone!
It sure is scary. ❤️ You’re welcome, Michelle!
This is heartbreaking 😔. It’s so scary what people can do now. And,unfortunately,it’s going to get worse with AI. I agree with everyone saying sharing these stories helps us to be vigilant. I hope they can some way some how get some kind of reimbursement 🤔🤷🏻♀️🙏.
Is there any chance they’ll get their money back? If not, what about a gofundme page? If Hip2save “advertises” it, they would probably do well since you have so many followeres. Just a thought.
Such a sweet thought. Thank you. ❤️ Right now though, they may not be comfortable with a GoFundMe or sharing their info. They may have an attorney involved, and we want to fully respect their privacy as they work through this nightmare. It really does mean so much to see how many of you care. For now, please just keep them in your prayers. 🙏🫶