Verifying wiring instructions is the single most important step you can take to protect your funds during a real estate transaction. It takes only a few minutes, and it can save you from losing tens of thousands or even hundreds of thousands of dollars. Here is exactly how to do it.
Step One: Never Use Contact Information From the Email
When you receive wiring instructions by email, do not use any phone number, address, or website link contained in that email to verify the instructions. If the email is fraudulent, the contact information in it is also fraudulent. Calling the number in the email could connect you directly to the criminal, who will confirm the fake instructions.
Step Two: Find a Verified Phone Number
Find the phone number for your title company or escrow officer independently. The safest sources are the company's official website (typed into your browser, not clicked from the email), a previous billing statement or disclosure document you received in person or by mail, a business card you already have in your possession, or a phone number you have called before and know is correct.
Step Three: Call and Confirm the Company
Call the verified number and ask to speak with the person who is handling your closing. Confirm that you are speaking with the right person. Ask them to verify the wiring instructions for your transaction. Do not tell them what you think the instructions are. Ask them to provide the instructions and then read them back to confirm.
Step Four: Read the Instructions Back
Once the title officer provides the wiring instructions, read them back verbatim. Confirm the bank name, account number, routing number, and beneficiary name. Ask specifically whether any changes have been made to the instructions recently. If changes were made, ask why and confirm that the change is legitimate.
Step Five: Confirm in Person if Possible
If your title company has a local office, consider going in person to verify wiring instructions. A face-to-face conversation eliminates any possibility of phone spoofing. While this is not always practical, it is the most secure method of verification.
Step Six: Verify Again Before Transferring
If there is a delay between when you verify the instructions and when you actually send the wire, verify again on the day you send the money. Instructions can be intercepted and changed at any point. A second verification takes only a few minutes and adds a critical layer of protection.
What to Do If Instructions Change
If you receive updated wiring instructions at any point, treat them as suspicious until verified. Legitimate changes to wiring instructions do happen, but they are rare. Any update should trigger a new verification process using a phone number you trust.
Verifying wiring instructions is not complicated. It is not expensive. It takes a few minutes of your time. But it is the single most effective defense against real estate wire fraud. Make the call. Protect your funds.
