Wire Fraud in Real Estate: What Georgia Buyers and Sellers Need to Know

Wire fraud has become one of the most significant threats in real estate transactions today. Criminals are targeting homebuyers and sellers, tricking them into sending money intended for closing into fraudulent accounts. The results can be devastating—buyers lose funds they need to purchase their home, and sellers may face serious delays in receiving their sale proceeds.

At Davis & Associates, we take wire fraud prevention seriously. Here’s what every buyer and seller should understand about real estate wire fraud in Georgia, how it happens, and how to protect yourself.

What Is Wire Fraud in Real Estate?

Wire fraud is a federal crime that uses electronic communications, such as email or the internet, to steal money. Real estate transactions are a prime target because of the large sums involved and the reliance on electronic communication during the closing process.

In most cases, real estate wire fraud begins with email compromise—a hacker gains access to or imitates an account belonging to someone involved in the transaction, such as a Realtor, lender, or closing attorney.

How Does Real Estate Wire Fraud Work?

Fraudsters often send emails that look nearly identical to legitimate communications from trusted professionals. These emails usually contain fake wiring instructions for the buyer’s earnest money deposit or closing funds.

Common tactics include:

  • Compromising a legitimate email account of a Realtor, lender, or attorney.

  • Using a “spoofed” email address that closely resembles a real one.

  • Sending last-minute instructions to create urgency and reduce the chance of verification.

  • Including fraudulent bank account information for wiring funds.

Once funds are wired to the fraudulent account, recovery is extremely difficult. Banks typically cannot reverse the transfer, and FDIC insurance does not cover this type of loss.

How to Prevent Wire Fraud in Georgia Real Estate Transactions

Preventing wire fraud requires vigilance and communication. Here are key steps buyers and sellers should take:

  • Beware of last-minute changes. It is highly unusual for wiring instructions to change right before closing. Treat these communications as suspicious.

  • Confirm wire instructions directly. Always call the closing attorney before wiring funds. Use the phone number from the attorney’s official website or a previously verified source—not the phone number in the email you received.

  • Verify the transaction. After sending a wire, call the closing attorney’s office the same day to confirm the funds were received. Wires left unchecked for more than 48 hours are often unrecoverable.

  • Watch for red flags. Many fraudulent emails contain misspellings, poor grammar, or awkward language.

  • Sellers should never email wire instructions. Provide wire instructions by fax, postal mail, or in person at the closing table. For safety, Davis & Associates will NEVER accept emailed wire instructions.

What to Do If You’re a Victim of Wire Fraud

If you suspect you’ve been scammed, act immediately:

  1. Contact your bank right away and request that the wire transfer be stopped or recalled.

  2. File a police report with your local law enforcement agency and provide documentation to your bank or lender.

  3. Report the crime to the FBI’s Internet Crime Complaint Center (IC3). The sooner you provide details, the better the chance of recovery. File a complaint here: FBI IC3 Complaint Center.

Final Thoughts on Wire Fraud Prevention

At Davis & Associates, your safety is our priority. We will never email wire instructions and we will never accept wire instructions sent to us by email. All wiring instructions are communicated securely to protect our clients.

If you are buying or selling property in Georgia and have questions about safely wiring funds for your real estate closing, contact Davis & Associates at 770-426-5440.