Protect Your Home Purchase: A Guide to Avoiding Wire Fraud

Buying a home is exciting, but there’s a lot happening behind the scenes before you get the keys. You’re reviewing documents, communicating with different people, preparing funds for closing, and keeping track of deadlines.

With so much happening at once, it can be easier for a fraudulent message to slip through unnoticed.

Wire fraud is a serious risk during real estate transactions, particularly as you get closer to closing. Scammers may pose as your lender, real estate agent, title company, or another trusted contact and try to convince you to send money or personal information somewhere it doesn’t belong.

The good news? A little extra caution can go a long way. Here are a few things to watch for throughout the mortgage process.

How Mortgage Wire Fraud Works

Wire fraud often targets homebuyers when they’re preparing to send funds for closing.

A fraudulent email might look like it came from someone you’ve already been working with. It could include a familiar name, company logo, or even information related to your transaction. The message may tell you that wiring instructions have changed and provide a new account for your funds.

That last-minute change should always be a reason to stop and verify.

Once a wire transfer is completed, recovering the money can be difficult. Taking a few minutes to confirm the details before sending your funds is one of the simplest and most important ways to protect yourself.

Before You Wire Money, Make a Call

One of the most important steps you can take is to never rely solely on emailed wiring instructions.

Before sending an earnest money deposit, down payment, closing costs, or other funds, call your title company or closing agent at a phone number you know is legitimate. Confirm the wiring information directly with them before initiating the transfer.

Avoid calling a phone number provided in the email you’re trying to verify. If a scammer created the message, they may have changed the phone number, too.

And if wiring instructions suddenly change? Verify everything again before sending a dollar.

Know the Warning Signs of a Suspicious Email

Fraudulent messages can be surprisingly convincing, so don’t rely on appearance alone. Logos, signatures, names, and professional-looking formatting can all be copied.

Instead, pay attention to the details. A slightly altered email address, an unexpected request for sensitive information, unusual wording, or pressure to act immediately can all signal that something isn’t right. Unexpected links and attachments deserve extra caution, too.

When you’re unsure, don’t reply to the message. Contact your loan officer or another trusted person involved in your transaction through a phone number or communication method you’ve already verified.

Protect Your Financial Information

Your mortgage application requires you to share sensitive financial documents, which makes secure communication especially important.

Use your lender’s secure document portal whenever one is available instead of sending financial records through standard email. You can also strengthen your personal security by using unique passwords, turning on multi-factor authentication, and avoiding public Wi-Fi when accessing financial accounts or sensitive documents.

These steps may feel small, but together they can make it much harder for someone to gain access to your information.

How Luminate Bank Helps Keep Your Information Secure

Your financial information deserves careful protection throughout your homebuying journey.

Luminate Bank uses secure technology and established procedures designed to help safeguard personal information during the mortgage process. That includes secure document-sharing tools, encrypted systems, identity verification procedures, and employee training focused on cybersecurity best practices.

Security works best when everyone stays alert. If something about a request or communication doesn’t seem right, you don’t have to figure it out on your own.

When in Doubt, Reach Out

One of the benefits of working with a loan officer you know is having someone you can contact when you have questions. If you receive an unexpected request involving money, wiring instructions, login credentials, or personal information, don’t let a sense of urgency rush your decision.

Contact Michael Creed directly to confirm the request before taking the next step. A few minutes spent verifying a message can help protect your sensitive information and funds from ending up in the wrong hands.

A Quick Wire Fraud Checklist

Before sending funds during your home purchase:

• Confirm wiring instructions by phone
• Call a trusted, previously verified phone number
• Be especially cautious if wiring instructions suddenly change
• Use secure portals to share financial documents whenever possible
• Avoid clicking unexpected links or opening suspicious attachments
• Contact your loan officer when something doesn’t look or feel right

Frequently Asked Questions About Mortgage Wire Fraud

Why do scammers target homebuyers?

Real estate transactions involve significant amounts of money, tight timelines, and communication among several parties. Scammers may try to take advantage of that activity by impersonating someone you trust at the right moment.

Can I trust wiring instructions I receive by email?

You should always independently verify wiring instructions before sending funds, even when an email appears legitimate. Call your title company or closing agent at a phone number you’ve already confirmed.

What if my wiring instructions change?

Changes can happen, but you should never send funds based on new instructions without confirming them directly with your title company or closing agent through a trusted contact method.

What's the safest way to send financial documents to my lender?

When available, use your lender’s secure portal for documents containing sensitive personal or financial information. If you’re not sure where a document should go, contact your loan officer before sending it.

What should I do with a suspicious email?

Avoid clicking links, opening attachments, or replying. Instead, contact your loan officer or the organization that supposedly sent the message using contact information you already know and trust.

What should I do if I sent money to a fraudulent account?

Act immediately. Contact your bank and request a wire recall, then contact your loan officer and title company. The sooner you report the situation, the better the opportunity may be to stop or recover the funds.

A Safer Path to Closing

Your home purchase should be something you can look forward to, not something that leaves you second-guessing every email in your inbox. A few simple habits, especially verifying requests before sending money or sensitive information, can help you move toward closing with greater confidence.

When you’re not sure, reach out to Michael Creed. Having a trusted loan officer to contact is always better than guessing when your money and personal information are involved.