Janet MatchinskyProtect your closing funds by verifying wire instructions through a trusted contact method established before the payment request arrives. Never rely on an email thread, logo or caller's claimed identity as proof of where to send money. If instructions change unexpectedly, stop and confirm them independently before authorizing a transfer.
I recommend making the verification plan early in your home purchase. A simple procedure agreed upon in advance is easier to follow when moving arrangements and closing deadlines compete for your attention.
Understand why a convincing message is still a risk
Closing fraud can imitate the people already involved in your transaction. The FBI's business email compromise guidance specifically describes a homebuyer receiving fraudulent down-payment instructions. A message may use details that make it seem familiar, so accuracy about your property is not enough to authenticate the destination account.
The payment decision should therefore depend on a separate verification step. If you receive an unexpected message, do not use its phone number or reply address to check whether it is genuine. That would let the same message supply both the instruction and the supposed confirmation.
Treat urgency as a reason to slow the process long enough to verify. A request to keep a change confidential, bypass a normal procedure or send funds immediately deserves direct attention. You can explain a short verification delay to a legitimate closing professional; you may not be able to recover money sent to a fraudster.
Establish a contact plan before money moves
At the beginning of the transaction, ask the settlement company how it provides payment instructions and how you should verify them. Record a trusted office number obtained independently of a later payment email. Confirm the name or department you should reach if your usual closer is unavailable.
Ask what information the office will confirm and how it handles any legitimate change. Also ask your bank about transfer procedures, scheduling and the information it needs. Do this before the day you expect to send funds so you are not solving two unfamiliar processes at once.
The CFPB's closing scam guidance recommends planning and confirming payment instructions in person or by a previously established trusted phone number. Keep that procedure available to every person who may authorize the transaction, including a spouse or other account holder.
Use a short transfer-day checklist
Read the instructions through the settlement company's established process. Then place your verification call using the saved, trusted contact information. Follow the company's verification procedure for the recipient, bank and account information; do not shortcut it because the amount matches your closing statement.
Confirm the amount through the appropriate closing documents and communication channel. The correct amount and the correct destination are separate checks. A fraudulent destination does not become safe because the requested sum is exactly what you expected to pay.
After the bank processes the authorized transfer, retain its confirmation and use your established contact method to confirm receipt with the settlement office. Keep sensitive account details out of casual text messages and shared planning documents.
| Before transfer | During verification | After transfer |
|---|---|---|
| Use the agreed instruction channel | Call the previously verified number | Keep the bank confirmation |
| Review the expected amount | Confirm destination through the office's procedure | Confirm receipt independently |
| Check for unexpected changes | Resolve discrepancies before authorizing | Report any concern immediately |
| Ensure account holders know the plan | Avoid numbers supplied in a suspicious message | Preserve relevant messages and records |
An illustrative last-minute change
Imagine you receive a message saying the title company's usual account is under maintenance and you must send your down payment elsewhere. It includes the correct address and closing date and appears in a familiar-looking conversation. None of those details should replace your verification process.
Stop before sending. Contact the settlement office using the number already verified, explain the message and ask the office to handle the concern through its established procedure. If you cannot reach the verified contact, do not let the sender's deadline become your authorization to proceed.
This example is hypothetical, but the decision rule is practical: a changed instruction must be independently checked. Do not respond by sending a smaller test amount to an unverified account. That still sends money to a destination you have not authenticated and does not resolve the underlying identity problem.
Protect the account that receives your closing messages
Use a strong, unique password for your email account and enable multifactor authentication where available. The FTC's account protection guide explains the additional protection provided by a second authentication factor. Follow the provider's secure setup process and store recovery information appropriately.
Be cautious with unexpected links or attachments asking you to sign in to view closing documents. The FTC's phishing guidance recommends contacting a company through information you know is genuine when a message appears suspicious. Use the portal or website established with your closing professional rather than trusting a newly supplied link.
You do not need to become a cybersecurity expert to follow a consistent procedure. The useful habit is to separate receiving a message from acting on it. Authentication should come from a trusted channel, especially when money or account credentials are involved.
Act immediately if you suspect a transfer was fraudulent
Contact your bank or wire-transfer provider immediately and report suspected fraud. Ask it to initiate its response and attempt to stop or recall the transfer. Notify the legitimate settlement company using your verified contact information. Do not wait for the suspicious sender to explain the discrepancy.
The CFPB's mortgage closing scam resource also directs victims to report to the FBI's Internet Crime Complaint Center. Preserve the payment confirmation, recipient details and relevant messages so you can provide accurate information through official reporting channels. Recovery is not guaranteed, which makes prompt action essential.
If you suspect email compromise, use the account provider's recovery process and secure the account. Keep the financial response moving at the same time. A password change alone does not address money already transferred.
Keep the transaction team informed without spreading sensitive data
Tell the professionals involved that a suspicious instruction was received, but use a secure method for sharing account information or identity documents. Keep a factual timeline of when the message arrived, when any payment occurred and whom you contacted. That is more useful than forwarding the material widely without context.
Our closing cost guide can help you understand the legitimate budget, and our final walk-through checklist covers the property's handoff. Keep payment verification as its own deliberate step alongside those preparations.
Contact me early to coordinate the closing schedule and confirm the transaction contacts. Your settlement company and bank should supply the verified payment procedure; follow it even when a message looks familiar and the moving truck is already booked.