In the digital age, the excitement of buying a home can quickly turn into a nightmare due to the increasing prevalence of wire fraud in real estate transactions. This type of fraud is becoming more prevalent here in Vermont. Wire fraud targets buyers' cash-to-close payments, exploiting the trust and anticipation that comes with home purchases. According to the American Land Title Association (ALTA), consumers lost on average $106,000 to wire fraud, a testament to the severity and impact of these schemes​​​.

People committing wire fraud employ sophisticated tactics to deceive home buyers, making them believe they are following legitimate instructions for sending their funds. These fraudsters often hack into the email accounts of real estate agents, lawyers, or other parties involved in the transaction. By monitoring communications, they wait for the perfect moment—usually close to the closing date—to impersonate these professionals. They then send the home buyer an email, which appears to be from a trusted source, containing new or updated wire transfer instructions. These instructions direct the funds to the fraudster's account, not to the legitimate escrow account. The emails often look incredibly authentic, complete with logos, signatures, and language that mimics previous communications. This method plays on the trust home buyers have in the professionals assisting them, and the urgency and complexity of real estate transactions further cloud the buyer's judgment, making it easier for fraudsters to succeed.

The statistics are alarming, with the National Association of REALTORS® reporting that in 2020 alone, approximately 13,638 individuals fell victim to real estate wire fraud, marking a 17% increase from the previous year. The losses amounted to over $213 million, ranking real estate and rental wire fraud as the seventh out of more than 30 types of fraud tracked by the FBI's Internet Crime Complaint Center​.

To safeguard against these threats, the following preventive measures are strongly recommended:

1. Verify all wiring instructions in person or via a known telephone number, ensuring that you are communicating with legitimate and verified parties,
2. Refrain from emailing financial information, as emails can be intercepted or manipulated by fraudsters.
3. Ensure secure web transactions, looking for "https://" in the URL and typing the web address manually rather than clicking on links in emails.
4. Exercise caution with email attachments and downloads, which can contain malware designed to compromise your personal information or financial details.
5. Be suspicious: It’s not common for attorneys to change wiring instructions and payment info.
6. Keep software and security measures up to date, reducing vulnerabilities on your devices that could be exploited by cybercriminals​.
7. Verify immediately by calling the attorney to validate that the funds were received. Detecting that you sent the money to the wrong account within 24 hours gives you the best chance of recovering your money.



The rise in wire fraud attempts, particularly targeting real estate transactions, emphasizes a growing payments risk that demands both awareness and action from potential homebuyers. With losses soaring into the millions and affecting a significant number of consumers annually, the importance of vigilance and informed precautions cannot be overstated. Through education, verification, and the use of secure practices, homebuyers can protect themselves against the devastating consequences of wire fraud​.