Last verified April 2026 · FBI IC3 2025 data
Escrow Wire Fraud: How to Avoid the $275M Scam (FBI IC3 2025 Data)
$275M
Lost to real-estate wire fraud in 2025
FBI IC3 2025 Annual Report
$3B+
Total Business Email Compromise losses in 2025
All categories, FBI IC3 2025
Criminals intercept email threads between buyers, agents, and escrow companies, then substitute fake wire instructions at the moment of closing. The money lands in a fraudulent account and is typically moved overseas within hours. The 10-point checklist below stops this cold.
How the Scam Works
Step one: the attacker compromises an email account in the transaction chain. This could be yours, your agent's, your escrow officer's, or anyone with visibility into the deal. Compromise methods range from phishing (a fake login page) to credential stuffing (using leaked passwords from other breaches) to malware.
Step two: the attacker monitors silently. They read every email in the thread, learning the transaction details, the parties, the amounts, and the timeline. They wait until the window is right - typically 2-5 days before closing, when the buyer is expecting wiring instructions.
Step three: the attacker sends fake wire instructions. These may come from the compromised email address directly, or from a lookalike domain (escrowoffice-us.com vs escrowoffice.com). The email looks exactly like what you would expect - correct names, correct address, correct closing date. The only difference is the bank account number.
Step four: the victim wires. Most victims discover the fraud only when they call the real escrow company to confirm everything went through. By then the funds have been swept from the fraudulent account and moved through multiple transfers, often ending up offshore.
The 10-Point Pre-Wire Checklist
Complete every step before wiring any funds. No exceptions. Forward this page to everyone involved in your closing.
Call the escrow company directly before wiring
Use a phone number you independently find on the escrow company's official website - not any number in an email. This is the single most effective protection against wire fraud.
Read back the routing number, account number, and bank name
Have the escrow officer confirm all three numbers verbally. If any digit differs from what you were emailed, stop immediately.
Send a $100 test wire first
Wire a nominal amount and call the escrow company to confirm receipt before sending the balance. The extra wire fee is trivial compared to the risk.
Verify at two independent points
Confirm the wire instructions with both the escrow company and your real estate agent via phone (not just email).
Enable multi-factor authentication on your email
Wire fraud often begins with email account compromise. MFA makes it dramatically harder for attackers to access and monitor your inbox.
Never respond to last-minute wire instruction changes
Escrow companies virtually never change wiring instructions after they have been provided. A last-minute change request is nearly always fraud.
Check the sender's email domain character by character
Fraudsters register lookalike domains (titlecompany-llc.com instead of titlecompanyIlc.com). Verify before clicking any link or following any instructions.
Reject wire instructions from free-email addresses
Real escrow companies use company domain emails. Wire instructions from Gmail, Yahoo, or Outlook addresses are a red flag.
Do not wire if there is any urgency or pressure
Urgency is a manipulation tactic. Real closing deadlines are known days in advance. Anyone pressuring you to wire 'right now' should be questioned.
Save voicemails confirming wire details
Keep a record of every phone verification call. If fraud occurs, this documentation is essential for your bank, FBI, and insurance claims.
What to Do If You Have Already Wired
Speed is everything. The FBI's Recovery Asset Team (RAT) has successfully frozen funds in roughly 73% of cases where action was initiated within 24 hours. After 72 hours, recovery probability drops dramatically.
Call your bank immediately
Ask for the wire recall team or fraud department. Request an immediate wire recall. If caught within the same business day, domestic banks can sometimes freeze the funds before they clear.
File a complaint at ic3.gov
The FBI's Internet Crime Complaint Center triggers the Recovery Asset Team. File immediately after calling your bank. Include all transaction details, amounts, receiving bank name and routing number.
Contact your local FBI field office
For losses above $50,000, call your local FBI field office directly. They may assign an agent to assist with the domestic bank freeze process.
Secure your email accounts
Change passwords immediately and enable multi-factor authentication. Determine how the attacker gained access. The FBI will want to know.
Notify all parties in the transaction
Your agent, escrow company, and lender all need to know the transaction was compromised. The closing may need to be delayed.
Other Escrow-Adjacent Scams
Fake escrow websites
Fraudsters register lookalike domains of Escrow.com and build convincing fake interfaces. The seller transfers a domain or ships goods; the site shows 'payment pending' indefinitely. Rule: never use an escrow service the other party proposes. The correct URL is exactly www.escrow.com.
Fake listing, fake escrow deposit request
Scammer creates a fake rental or property listing. 'Buyer' or 'renter' contacts you, wants to use escrow, asks you to pay a deposit 'to hold the property' via a fake escrow site. Any unsolicited request to pay a deposit into a site you have not previously used is almost certainly fraud.
Escrow cancellation refund scam
You receive an email claiming your escrow transaction was 'cancelled' and you need to verify your bank account to receive a refund. The goal is harvesting your banking credentials. Real escrow refunds are issued as checks or direct deposits initiated by the escrow company, not via a link in an unsolicited email.
Fake buyer via online platforms
A buyer contacts you on a platform (Craigslist, Facebook Marketplace, eBay) for a high-value item. They propose using a third-party escrow service and send you a link to a fake site. They 'pay', you ship the item, the payment never arrives. Always use Escrow.com directly and initiate the transaction yourself.