Closing Wire Fraud: How Sellers Protect Their Sale Proceeds
Your sale proceeds may be the largest payment you ever receive. That makes the closing a target. The scam is simple: someone pretends to be a person you trust and sends new instructions for where the money should go. The fix is simple too, if you set it up before closing day.
A closed laptop, a set of house keys, a smartphone with a dark screen and a manila folder on a table by a window in soft lamp light
Never act on wiring instructions that arrive by email, even if the email looks right. Before closing day, agree on the payout process and a phone number with your closing agent. Confirm the account details using that number. If money goes to the wrong place, call your bank at once and ask for a recall, then report it at ic3.gov.
How the scam works
The Consumer Financial Protection Bureau has described the pattern. Scammers break into, or closely copy, the email of people in a real estate deal. They read along until a closing is near. Then they send an email that looks like it came from the real estate agent, the settlement agent or a lawyer, with new instructions for where to wire money.
The FBI's Internet Crime Complaint Center (IC3) calls this business email compromise. It says the scam targets "both businesses and individuals performing a transfer of funds." The CFPB writes mostly about buyers wiring closing costs. But a seller's proceeds are a transfer of funds too. The same trick can be pointed at the instructions for where your money is sent.
| What you might see | What it could mean | What to do |
|---|---|---|
| An email saying the bank account "changed" | A classic sign of fake instructions | Call your closing agent on the number you agreed on |
| A rush: "wire today or the deal falls apart" | Pressure to skip checking | Slow down. A real closing agent will wait for you to verify |
| A sender address that is one letter off | A copied or spoofed address | Check the full address, especially on a phone |
| A request to email your bank account number | An attempt to collect your details | Ask the closing agent for a safer method |
| A proceeds deposit that never arrives | Money may have gone elsewhere | Call your bank and the closing agent right away |
These are warning signs, not proof. A real change can happen, but it should always be confirmed by phone using a number you already trust.
Want to know how we handle payouts?
Ask us before you sign anything. We will walk you through how our title company confirms where your proceeds go, and how you can check it yourself.
Set up your safety plan before closing day
Most of the protection comes from what you do early, before anyone is in a hurry. The CFPB suggests these steps.
Pick two people you trust
Talk through the money plan
Think about a code phrase
Keep financial details out of email
Confirm by phone before money moves
Small habits the FBI recommends
The IC3's business email compromise page lists a few everyday habits. They are easy to start now, weeks before any closing.
- Use a second channel. Verify any request to change account details through a different method, like a phone call, or with two-factor authentication.
- Read the full sender address. Make sure it matches who it claims to be from. This is easy to miss on a phone, where only a name may show.
- Show full email extensions. The IC3 suggests changing your email settings so full extensions can be seen.
- Watch your accounts. Check your bank accounts regularly for anything odd, such as a deposit that should have arrived and did not.
Questions to ask your closing agent
You do not need to be a tech expert. A few plain questions, asked early by phone, tell you a lot about how your closing agent handles money.
- How will my proceeds be sent to me: wire, check or another way?
- How do you want me to give you my bank details, if not by email?
- Will you ever change payment instructions by email? (The safe answer is that any change is confirmed by phone.)
- Which phone number should I call to confirm, and who will answer?
- When should I expect the money, so I know when to start checking?
Write the answers down. If something later does not match what you were told, stop and call.
If a wire goes wrong, the first hours matter
Both the CFPB and the FBI say speed matters. Do not wait to see if the money shows up later.
The IC3 warns that scammers pretend to be the IC3. It says it does not work with private firms to get money back and "will never directly contact you for information or money." Anyone who promises to recover your funds for a fee should be treated as a scammer.
The FBI also suggests asking your bank about a recall or reversal and related documents, such as a hold harmless letter or letter of indemnity, as quickly as possible. Your complaint at ic3.gov should include all the banking information. In Ohio, you can also call the Attorney General's consumer protection line at 800-282-0515.
What a cash sale changes, and what it does not
In a cash sale, there is no buyer's mortgage lender sending a loan wire. That is one less party in the email chain. But your proceeds still move from the closing agent to you. So the same rules apply: confirm by phone, keep details out of email, and watch for a deposit that does not arrive.
Ohio law also sets rules for when a closing agent can pay out funds. Our post on when the seller gets paid at closing in Ohio covers that. For why we close through a title company, see why we use a title company. And if you own a vacant house or land, a forged deed is a different scam worth reading about in our post on deed fraud.
Your six options, and where wire risk shows up
| Option | Where money moves | What to watch |
|---|---|---|
| Keep it | No sale proceeds | Still guard your mortgage and bank accounts |
| Repair it | Payments to contractors | Confirm any change in payment details by phone |
| Rent it out | Rent and deposits | Be careful with new payment instructions from anyone |
| List with an agent | Lender wire in, proceeds out | More people in the email chain. Commissions often run 5.5% to 6% |
| Sell it yourself (FSBO) | Proceeds through the closing agent | You set up verification yourself |
| Sell direct for cash | Buyer funds in, proceeds out | No loan wire. We can close as fast as 7 days, typically around 21 |
No option removes the risk entirely. The protection is the same everywhere: verify by phone using a number you already trusted.
Whichever way you sell, compare your net proceeds: the price minus your mortgage payoff, closing costs and any commission. A safe closing protects that number.
Compare your net, safely
We buy houses across Cleveland and Northeast Ohio as-is. Ask for a written cash offer and compare it with a listing. We will also show you exactly how payout is confirmed.
This article summarizes guidance from the Consumer Financial Protection Bureau and the FBI's Internet Crime Complaint Center as we read it in October 2026. It is general information, not legal or financial advice. We do not quote loss figures, because the ones we found are years old. We did not research any bank's recall rules. If you think you have been targeted, contact your bank and law enforcement right away.
Questions before your closing?
Call us. We will explain how our closings work and how you can confirm every step yourself, and you decide what comes next.
Frequently asked questions
Scammers get into or copy the email of someone in the deal, like an agent or the settlement agent. They watch for a closing, then send fake instructions telling someone to wire money to the scammer's account. The Consumer Financial Protection Bureau describes this pattern.
The FBI's Internet Crime Complaint Center says business email compromise targets both businesses and individuals moving money. A seller's proceeds are a transfer of funds, so the same trick can be aimed at where your money is sent.
Agree on the process and a phone number with your closing agent before closing day, in person or by phone. Then confirm the account name and number using that number, not one in an email. The CFPB also suggests a code phrase.
The CFPB says email is never a secure way to send financial information. Ask your title company how it wants you to give your payout details safely.
Call your bank and the closing agent right away and ask for a wire recall. The FBI says to contact the bank as soon as fraud is recognized. Then file a detailed complaint at ic3.gov, including the banking information.
Be careful. The IC3 says it will never directly contact you for information or money. Someone who calls claiming to be from the IC3 and asks for money is a scammer.
No sale type is immune, because your proceeds still move from the closing agent to you. What helps is a clear plan for how payout details are confirmed. We go over that with every seller before closing.
Find out what we would pay
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Keep reading
The Cash Offer Process
When Do You Actually Get Paid After an Ohio Closing?
Ohio law forbids a closing agent from paying anyone until the money is actually there, and it says precisely what "actually there" means. That rule is usually the whole explanation for a delay.
The Cash Offer Process
Why We Use a Title Company — Protecting Both Buyer and Seller
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