Mortgage Closing Wire Fraud: A Stop, Call and Verify Checklist for Homebuyers


Closing week is busy. Buyers are reviewing documents, coordinating movers and preparing to transfer funds. That sense of urgency is exactly what a scammer may try to exploit.


The Consumer Financial Protection Bureau warns that criminals target homebuyers near closing by sending false wiring instructions. A scammer may pose as a real estate agent, lender, settlement agent, attorney or another trusted person in the transaction.


How the scam can look real


A fraudulent message may use familiar names, logos, email formatting and transaction details. It may say that wiring instructions changed or that funds must be sent quickly to avoid delaying closing.


The message can look polished. That is why visual appearance is not enough to establish that it is legitimate.


Set up verification before closing week


The CFPB recommends identifying trusted people involved in the closing and recording their contact information in advance. Buyers can ask the title or settlement professional how wiring instructions will be delivered and whether instructions are ever changed by email.


Use contact information obtained independently. Do not rely on a phone number, reply address or link contained in an unexpected message.


The stop, call and verify routine


STOP. Pause when a message creates urgency, changes payment instructions or asks for sensitive financial information. Do not click links, download attachments or reply until the message is confirmed.


CALL. Contact the trusted closing professional using a phone number you previously verified or obtained from an official source.


VERIFY. Read back the recipient name, bank name and account information. Confirm whether any instructions changed and ask what secure process the company uses.


Why Realtors and referral partners should discuss this early


Homebuyers may assume that everyone in the transaction uses the same security process. A short conversation early in the contract period can remove that assumption. Realtors, lenders, title professionals and builders can help clients understand who will send instructions and how questions should be handled.


The goal is education, not fear. A simple routine is easier to remember than a long list of technical warnings.


If funds were already sent


Act immediately. CFPB guidance says to contact the bank or wire-transfer company and ask for a wire recall. Report the incident through official channels, including the FBI Internet Crime Complaint Center where appropriate. Use trusted government websites and phone numbers.


Recovery is not guaranteed. The sooner the financial institution is contacted, the better the chance that available options can be explored.


A final closing-week checklist


Know who will provide the instructions.

Save independently verified phone numbers.

Treat any last-minute change as a reason to pause.

Confirm all details verbally before sending funds.

Do not email sensitive financial information.

If something goes wrong, contact the financial institution immediately.


The bottom line

Closing-wire fraud does not always look suspicious. A buyer's best defense is a verification process established before the urgent message arrives.


Sources:

https://www.consumerfinance.gov/owning-a-home/beware-mortgage-closing-scams/

https://www.consumerfinance.gov/archive/blog/mortgage-closing-scams-how-protect-yourself-and-your-closing-funds/

https://www.consumerfinance.gov/ask-cfpb/who-do-i-contact-for-help-with-a-scam-or-fraud-en-1777/


Mike David | NMLS #1619714 | Waterstone Mortgage Corporation | Equal Housing Opportunity

Location: Tulsa, OK, USA

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