When you buy a home, you will transfer significant sums of money at two key points: your earnest money deposit when your offer is accepted and your closing funds just before the final settlement. Both are targets for fraud. Here is how to protect every dollar.
Understand Where Your Earnest Money Goes
Your earnest money deposit should be held by a neutral third party. In Nevada, this is typically a title company or escrow agent. The money is deposited into a trust account and held until closing. It is not held by the seller, the real estate agent, or the listing brokerage. If someone asks you to send earnest money directly to the seller or to an individual, that is a red flag. Always confirm the escrow instructions with your agent before sending any deposit.
Verify Account Information Before Sending
Before you send any funds, verify the account information by calling the title company or escrow officer at a phone number you already know. Do not use the phone number from the email. Read the wire instructions back and confirm the bank name, account number, routing number, and the name on the account. Ask specifically whether the instructions have been changed at any point.
Use a Secure Method of Transfer
Wire transfers are the most common method for closing funds, but they are also the most targeted by criminals. Some title companies offer alternative secure transfer methods, including ACH transfers through secure portals, cashier's checks delivered in person, or electronic funds transfer systems that use encryption and multi-factor authentication. Ask your title company what options are available and choose the most secure method.
Do Not Let a Deadline Override Security
The days leading up to closing are stressful. You are coordinating movers, finalizing loan documents, and preparing for a major life change. Criminals know this and will use deadline pressure to push you into acting without verification. No deadline is worth losing your entire down payment. Delaying closing by a day to verify wiring instructions is always the right decision.
Protect Your Email Account
Your email account is the gateway to your transaction. If a criminal gains access to your email, they can see every communication about your closing. Use a strong, unique password for your email account. Enable multi-factor authentication. Be cautious about clicking links in emails related to your transaction. If you receive an unexpected email from your lender, title company, or agent asking you to log in to a website, type the website address into your browser manually rather than clicking the link.
Communicate With Your Agent
Your real estate agent is your advocate throughout the transaction. Before you send any funds, confirm the process with your agent. Ask them what to expect in terms of timing, amounts, and methods. Ask them who you should contact with questions. Your agent cannot prevent wire fraud by themselves, but they can help you identify the normal process so you can spot anything unusual.
Protecting your earnest money and closing funds does not require special technical skills. It requires awareness, verification, and a willingness to slow down when something feels rushed or unusual. Those few extra minutes of verification are the best investment you will ever make.
