Wire fraud isn’t a new problem – but in 2025, it’s more dangerous than ever. Scammers have upped their game, and real estate remains a prime target. Don’t just take my word for it: over half of real estate transactions in late 2023 showed signs of wire or title fraud risk (eftsure.com). Read that again – more than one in two! As an agent in 2025, here’s what you must know to protect your clients and your business from wire fraud.
It’s Startlingly Common
If you think wire fraud is rare, the stats say otherwise. In recent years we’ve seen record-high fraud attempts. One industry report found that 51.8% of real estate transactions in Q4 2023 had indicators of wire or title fraud(eftsure.com) – an all-time high.
Another survey revealed 25% of homebuyers were targeted by a wire fraud attempt during closing (eftsure.com). In other words, this is happening every day in real estate deals across the country. No agent can afford to ignore it.
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Scammers’ Tactics Are Evolving
The classic scenario is a hacker breaks into someone’s email and sends fake wire instructions (that’s still very much a thing). But now fraudsters are getting even craftier. Business Email Compromise (BEC) scams – where criminals infiltrate email accounts – accounted for a whopping $2.9 billion in losses in 2023 (certifid.com) across industries, and real estate is a big part of that. In 2025, scammers might use AI tools to draft extremely convincing emails (no more obvious typos!), or even deepfake voice technology to pretend to be someone on the phone.
We have to be on our toes. Basically, the bad guys are treating this like a business – they adapt quickly to security improvements and look for new angles.
The Stakes for Clients Are Huge
We’re talking life-changing sums of money. The median loss per real estate wire fraud victim is over $70,000 (eftsure.com). Many buyers are wiring their down payments or proceeds from a sale – if that money gets stolen, it can wipe out their savings and jeopardize the whole deal.
And recovering funds is extremely difficult once they’ve been transferred to a criminal’s account. Beyond the immediate loss, think of the heartbreak and stress for a family that suddenly can’t close on their dream home because their closing funds vanished. Part of our job as agents is to appreciate how serious this is and convey proper caution to clients.
Best Practices to Protect Your Transactions
So what can you do in 2025 to combat wire fraud? First, implement iron-clad verification procedures. This means always verifying wiring instructions via a phone call to a known trusted number (and telling your clients to do the same)(nar.realtor). Many brokerages now have standard warnings and disclosures about wire fraud – use them and discuss them with every buyer and seller. Second, secure your email and devices.
Use strong passwords, update your software, and consider using encrypted email or transaction management platforms that add extra layers of security. And of course, educate your clients: Let them know early on that you will not change wiring info by email and that they should be suspicious of any such communications. Creating this awareness can stop a scam before it starts.
It’s a Shared Responsibility
Finally, recognize that everyone involved – agents, title companies, lenders, clients – has a role in preventing wire fraud. As the agent, you often serve as the quarterback of the transaction. Make sure the whole team is on guard. If you’re a broker or team leader, ensure your agents get training on current fraud schemes.
The industry and regulators are emphasizing this because it’s that important. And remember, if a client loses funds due to a preventable wire fraud, there could even be legal implications for professionals who didn’t take proper precautions. Simply put, protecting against wire fraud is now part of being a real estate professional.
Stay Sharp and Stay Educated
One of the best ways to keep up with ever-changing fraud tactics is through real estate continuing education. There are specialized Real Estate CE courses on wire fraud, cybersecurity, and risk management that are updated with the latest information (because what worked in 2018 might not be enough in 2025!).
By investing a few hours in an online course, you’ll reinforce what you already know and likely learn something new that could save a client’s $$ in the future. Plus, you’ll earn CE credits toward your license renewal – not a bad deal for something that can protect your livelihood.
In 2025, being complacent is dangerous; being proactive by continually learning is the way to go. So, log into that online real estate CE portal, find a highly-rated course on fraud prevention, and empower yourself to outsmart the scammers at every turn.
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For real estate professionals, understanding these concepts can be particularly valuable during discussions with clients about why REALTORS® and real estate agents are knowledgable professionals.
If you’re preparing for your Real Estate Continuing Education or looking to enhance your knowledge through a Real Estate Course, topics like preventing identity theft can help set you apart.
As part of your License Renewal Course or other Real Estate CE efforts, staying informed on foundational property concepts can make a big difference in your expertise and client relationships.