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This article is based on materials prepared for a panel discussion held at the American Bar Association’s 38th Annual Real Property, Trusts and Estates National Conference in Chicago. Fidelity National Financial Cyber and Wire Fraud Department Manager Krista Christensen and Hill Ward Henderson Shareholder Shane Costello joined Ryan Ellard in this conversation.

Real estate transactions are prime targets for cybercriminals. If a chain is only as strong as its weakest link, these transactions present several links bad actors can attack: the seller, buyer, lender, attorneys, real estate agents, title agents, etc. Each link in the chain is an opportunity to exploit the process. Assets at risk include:

  • Closing funds
  • Mortgage payoffs
  • Earnest money deposits
  • Seller proceeds
  • Real estate commissions
  • Title to the property.

Cyber criminals seize on urgency, and real estate transactions tend to operate under tight time constraints. They also involve publicly available information, including property records, email addresses, and real estate listings.

Take together, these circumstances  create significant risk. A 2025 FBI report recorded more than 12,000 real estate-related cybercrimes, resulting in more than $275 million in economic losses.

Wire Fraud in Real Estate Transactions

Real estate wire fraud remains a significant threat in residential transactions, with more than one in four homebuyers and sellers targeted, and nearly one in twenty homebuyers becoming victims. 

In the context of real estate transactions, wire fraud is a scam in which cybercriminals trick a buyer or seller into sending closing funds, earnest money, a down payment, or sale proceeds to the bad actor’s bank account rather than the intended recipient. Criminals often gain access to or closely monitor email communications between the parties involved, allowing the scammers to send fake wiring instructions posing as a real estate agent, title company, lender, or attorney.

Despite the risk, CertifID’s State of the Wire Report found that 52% of consumers are not aware or only somewhat aware of wire fraud dangers, and fewer than half learn about the risks from their real estate professionals. Older consumers are especially vulnerable, with those fifty-five or older twice as likely to be unaware of wire fraud risks as younger buyers. At the same time, consumers increasingly value security, with 79 % saying they are willing to pay more to work with real estate providers who prioritize fraud prevention.

Time is of the essence if you or your client fall victim of wire fraud:

  • Immediately contact your bank and the receiving bank to freeze and issue a recall of the wire transfer.
  • Review any controlling data breach notification laws to determine the extent to which you must notify affected parties
  • File a complaint with FBI at IC3.gov. Filing within 24 hours, but no more than 72 hours, provides best chance to recover.
  • Coordinate with your insurers.
  • Consider filing for a temporary restraining order.

AI Usage Increasing the Threat Level

The rise of artificial intelligence has given cybercriminals valuable tools to employ in real estate fraud campaigns. 

AI gives cybercriminals the resources to create professional looking emails and convincing deep fake videos. They now can clone voices from voicemail, making victims believe they are speaking with someone they know. AI even cleans up the poor grammar and syntax that used to be a tip-off that an email was fake. The CertifID State of Wire Fraud Report 2026 found a 1,760 percent year-over-year increase in business email compromise attacks after AI tools became widely available

Best Practices to Guard Against Real Estate Cyber Fraud

  • Account Security
    • Enable multi-factor authentication (MFA).
    • Don’t use shared accounts.
    • Label emails from entities outside your organization with external tags.
    • Consider Domain-based Message Authentication Reporting and Conformance (DMARC), Sender Policy Framework (SPF) and DomainKeys Identified Mail (DKIM).
  • Individual Email Tips
    • Hovering cursor over sender’s email address may no longer guarantee the URL shown is the actual sender. 
    • If you suspect the “From” address is fraudulent, check it with a header analyzer such as this one from Google: https://toolbox.googleapps.com/apps/messageheader/
    • Use the “Forward” option rather than the “Reply” to respond to emails to ensure the intended recipient’s correct e-mail is used.
    • Review your account activity records for suspicious logins.
    • Periodically check your Sent folder to be sure emails aren’t being sent or forwarded without your knowledge.
    • Periodically check your email configuration to ensure automatic forwarding has not been enabled without your knowledge.
  • Confirm and Verify
    • Verify wire instructions and payoff amounts with a phone call to a trusted number. Consider using a deal password and/or secure wire prevention software.
    • Conduct a secondary review and signatory on outgoing wires.
    • Utilize wire fraud detection software to flag suspicious activity.
    • Promptly confirm receipt of funds.

Cyber fraud is a present and growing threat to all participants in a real estate transaction. But the stronger the chain, the less likely that criminals will be able to break in. The time to prepare is now, before an attempted cybercrime takes place.

If you have any questions about the issues raised in this alert, please contact the authors or the Womble Bond Dickinson attorney with whom you work. Learn more about Womble’s Real Estate, Privacy and Cybersecurity, and AI teams.