A buyer can negotiate for months, save for years and lose the entire closing fund in minutes if money is wired to a criminal. Mortgage-closing scams often work because the fake email or message looks almost identical to a real conversation with the title company, lender or real-estate professional.
The scam often looks like a normal last-minute update
A criminal may compromise or imitate an email account, wait until the closing is approaching and send revised wiring instructions. The message can contain real transaction details and familiar names, which is why visual familiarity is not enough to prove the instructions are legitimate.
Verify using a phone number you already trust
Before wiring closing funds, call the title or closing company using a phone number obtained independently, such as a number already saved from earlier communication or the company's known contact information. Do not use the phone number or link contained in a suspicious last-minute email to verify that same email.
Treat changed instructions as a major warning
The Consumer Financial Protection Bureau specifically warns buyers about scammers who suggest last-minute changes to wiring instructions. Any unexpected change to the receiving bank, account number, payment method or contact person should trigger independent verification before money moves.
If money goes to the wrong account, act immediately
Contact the sending bank or wire-transfer provider immediately and ask whether the wire can be recalled or frozen. Then notify the legitimate closing professionals and report the fraud to law enforcement. Speed matters because wired funds can be moved quickly.
The best defense is a boring process: establish who will send wiring instructions, verify them by a second trusted channel and refuse to act on surprise changes until they are independently confirmed.
Related resources
What Actually Happens on Closing Day in a Colorado Home Sale?
Title Commitments in Colorado: What Buyers Should Actually Review