Buying a home is a big moment. It’s exciting, emotional and sometimes a little stressful. Because it’s such a major purchase, homebuyers are often targeted by scammers. Real estate fraud has been on the rise, and many of the scams are designed to blend into the normal homebuying process.
The Federal Trade Commission reports that consumers lost more than $12.5 billion to fraud in 2024*. Business email compromise, a common tactic in real estate scams, accounted for about $2.8 billion in losses**. Criminals often use email, online portals and electronic payments to try to intercept money or personal information.
The good news is that you can protect yourself. Knowing the red flags and taking a few simple steps can help you move through your homebuying experience with confidence.
Watch out for wire fraud
Wire fraud is one of the most common and costly types of real estate fraud. Criminals may pretend to be your real estate agent, title company or attorney and send fake wiring instructions that reroute your closing funds.
Red flags to look for
- Last minute “updated” wire instructions sent by email
- Messages asking you to confirm details only by email
- Urgent requests to send money right away
How to protect yourself
- Ask your title company or attorney to explain their wiring process at the start of your transaction.
- Write down their verified phone number.
- Always call that trusted number to confirm wiring instructions before sending money.
Spot fake home listings
Scammers sometimes post fake listings to collect deposits or personal information. These scams are common in tight housing markets where homes move fast.
Red flags to look for
- Prices that seem much lower than similar homes.
- Pressure to send deposits quickly, especially by wire, gift card or payment app.
How to protect yourself
- Work with a licensed real estate agent who can confirm whether a property is truly for sale.
- Avoid sending money or sharing personal details until you’ve verified ownership through trusted channels.
Be aware of title and ownership scams
Title and deed fraud happens when criminals forge documents to transfer ownership, take out loans or try to sell a property they don’t own.
Red flags to look for
- A seller who can’t answer basic questions about the home.
- Someone encouraging you to skip title insurance or avoid using a reputable title company.
How to protect yourself
- Use a trusted title company or real estate attorney to complete a full title search.
- Consider getting Owner's Title Insurance to help protect against fraudulent or undiscovered claims.
Simple habits can help protect you
While fraud is a real risk, you can lower your chances of becoming a victim by slowing down and building a few checks into your process.
Smart steps to follow
Work with trusted professionals such as licensed real estate agents, lenders, title companies and attorneys.
Agree on how you will communicate, including how important instructions will be shared.
Verify before you pay by calling a known and trusted phone number before sending any wire transfer.
Use strong email security, including unique passwords and multi-factor authentication.
Report anything suspicious to your bank right away and file a report with ReportFraud.FTC.gov or the FBI’s Internet Crime Complaint Center.
The bottom line
Protecting yourself from real estate fraud starts with staying alert and asking questions. When you verify instructions, double check details, don't feel rushed or pressured and work with trusted professionals, you can feel confident as you move through the homebuying process. Atlantic Union Bank is here to help you feel informed and supported every step of the way.
*FTC
**Nacha