How Do You Protect Yourself From Wire Fraud When Buying a Home in Dallas?

Verify every set of wiring instructions by phone, using a number you already have on file for your title company, never a number or link from an email. Never send funds based on instructions that arrive only by email, even if they look identical to everything else you've received. If wiring instructions change in the days before closing, treat it as a red flag and call your title company directly before you send a dollar. Real estate wire fraud has cost Texas buyers hundreds of thousands of dollars in a single transaction, and the days around closing are the moment scammers target hardest.

By Matt Watson, Broker, REALTOR® | August 7, 2026

Nearly one in four home buyers report experiencing a fraud attempt during their closing process, and the losses aren't small. National data on real estate wire fraud shows victims losing an average of well over $100,000 per incident, with total reported losses climbing past $170 million in recent years. This isn't a rare, freak occurrence. It's one of the most common ways buyers lose real money in a real estate transaction, and it happens fast, often within 24 hours of a scheduled closing.

Texas isn't immune. A title company employee in McAllen was federally prosecuted for orchestrating a wire fraud scheme that diverted more than $350,000 from a real transaction using a spoofed lienholder email. If it can happen inside a title company, it can happen to any buyer who isn't careful about how they verify instructions.

You're going to wire more money in this transaction than in almost any other financial decision you'll make. On a $300,000 Oak Lawn condo, that might mean a $60,000 down payment. On a $700,000 East Dallas home, it could be well over $100,000. This is exactly the kind of money criminals build entire operations around intercepting.

How the Scam Actually Works

Wire fraud in real estate almost always starts the same way: a scammer gains access to an email account somewhere in the transaction, whether it belongs to you, your agent, your lender, or the title company. From there, they don't hack anything else. They just watch.

They read your emails, learn your closing date, and wait for the moment you're expecting wiring instructions. Then, right before that moment, they send you a message that looks exactly like it's coming from your title company, complete with matching logos, matching language, and sometimes even a spoofed email address that's off by a single letter.

The instructions look routine. "Updated wiring details attached." "Please use this account for your closing funds." Because you're already expecting to wire money around that exact time, and because the message looks legitimate, buyers send the funds before anyone realizes what happened. By the time the title company calls asking where the down payment is, the money is usually gone, often routed through several accounts and out of the country within hours.

This is also why option period and earnest money deadlines can be a target, not just final closing. If you're still working through your option period under a Texas contract, you're already wiring or delivering funds on a deadline, which creates the same pressure scammers rely on.

What to Do Before You Ever Wire a Dollar

You can eliminate almost all of your risk with a handful of habits. I walk every client through these before we get anywhere near a closing date.

  • Get your title company's phone number early, and get it from a source you trust. Pull it from your contract or their website directly, not from an email signature. Save it in your phone before you need it.
  • Never accept wiring instructions by email alone. Even if the email looks perfect, call and verbally confirm the account name, account number, and routing number before you send anything.
  • Treat last-minute changes as an automatic red flag. If instructions change close to your closing date, or the request suddenly feels urgent, that urgency is the tell. Legitimate title companies don't pressure you to skip verification.
  • Ask about a secure portal. Many Dallas title companies now offer encrypted document and payment portals specifically to get sensitive account details out of email entirely. Use it if it's offered.
  • Confirm in person when you can. If you're at the title company's office for closing, ask to confirm the account details face to face rather than relying on anything sent electronically beforehand.

None of this is complicated. It's a five-minute phone call that stands between you and losing your down payment. What actually gets buyers is skipping that step because everything else about the email looked right.

Understanding what you're actually wiring and when also helps you spot something that looks off. If you want the full breakdown of what buyers actually pay at closing in Dallas, including which fees get wired versus which show up on your final settlement statement, that's worth reviewing before you're staring at a wire request under time pressure.

If You Think You've Already Sent Money to a Scammer

Speed matters more than anything else here. If you catch it within the first few hours, there's a real chance your bank can stop or recall the wire before it's fully disbursed. Wait a day, and that chance drops sharply.

  1. Call your bank immediately and request a wire recall. Ask specifically for their fraud department, not just customer service.
  2. Contact your title company and real estate agent right away. They need to know so they can alert their own bank and confirm whether the funds actually reached the correct account.
  3. File a complaint with the FBI's Internet Crime Complaint Center at ic3.gov. The FBI has recovery programs for exactly this kind of fraud, but they only work if you report quickly.
  4. Contact local law enforcement and file a police report, which you'll likely need for any insurance or recovery claim.

This is stressful, and it's also exactly the kind of moment where having someone in your corner who's been through the closing process hundreds of times makes a real difference. After your offer is accepted in Texas, you're moving through earnest money, option period, appraisal, and underwriting on a tight timeline, and wire fraud prevention needs to be part of that plan from day one, not something you think about the night before closing.

I've closed transactions across Uptown, Oak Lawn, East Dallas, and North Oak Cliff for more than 25 years, and I never send wiring instructions by email, ever. If a client gets anything claiming to be from me or the title company about wiring money, I want that phone call before a single dollar moves. That verification habit is one of the simplest things I can do to protect a client's down payment, and it costs nothing but a few minutes.

If you're getting close to a closing date and want a second set of eyes on anything that feels off, or you just want to talk through how the process works before you're in the middle of it, reach out. I'd rather field an unnecessary phone call than have a client lose money over an email that looked a little too convincing. You can reach me directly at mattwatson.com.

Frequently Asked Questions

What is real estate wire fraud, and how common is it in Texas?

Real estate wire fraud happens when a criminal impersonates a title company, lender, or agent and sends fraudulent wiring instructions, usually right before closing. It's common enough that roughly one in four buyers nationally report experiencing an attempted scam during their closing process, and Texas has seen real prosecuted cases, including a title company employee in McAllen convicted of diverting over $350,000 through a spoofed email.

How do scammers get access to my closing information?

Most wire fraud starts with a compromised email account somewhere in the transaction, whether it's yours, your agent's, your lender's, or the title company's. Once inside, the scammer monitors messages to learn your closing date and timing, then sends fraudulent instructions timed to arrive right when you're expecting the real ones.

Should I ever send money based on wiring instructions I received by email?

No. Always verify wiring instructions by phone using a number you obtained independently, such as from your signed contract, not a number or link included in the email itself. This single habit prevents the vast majority of successful wire fraud attempts.

What should I do if I already wired money to the wrong account?

Call your bank immediately and ask for their fraud department to request a wire recall, then notify your title company and agent right away. File a report with the FBI's Internet Crime Complaint Center at ic3.gov as soon as possible, since recovery odds drop significantly after the first 24 hours.

Does my title company protect me from wire fraud?

Reputable Dallas title companies take real precautions, including secure portals and verbal verification policies, but the responsibility for confirming instructions before sending funds ultimately falls on you. No title company can undo a wire transfer once you've sent it to a fraudulent account, which is why verification before sending is the only real protection.

About Matt Watson, Broker, REALTOR®
Matt Watson is a Dallas-based real estate broker and REALTOR® with over 25 years of experience in the city's urban core neighborhoods. He specializes in condos, townhomes, and single-family homes in Uptown, Oak Lawn, East Dallas, and North Oak Cliff. Whether you're buying your first condo or selling a longtime home, Matt brings deep local knowledge and straightforward guidance to every transaction. Connect with Matt at mattwatson.com.