Wire Fraud Risks for Florida Homebuyers: Stay Safe at Closing

Imagine you’re days away from closing on your Florida home when a new email arrives: “Urgent update: wire your closing funds to this account today to avoid delay.” The logo looks right. The signature looks right. But the wiring instructions are wrong—and once money is sent, it can vanish in minutes. This is the playbook of modern real estate fraud. The good news: with the right guidance and a disciplined process, you can keep your money safe.

“No email—no matter how official it looks—should ever be treated as your final payment instruction. Verify, then wire.”

Why Florida homebuyers are prime targets

Florida’s fast-paced, high-volume real estate market, out-of-state relocations, and frequent remote closings make buyers especially attractive to cybercriminals. The FBI and Florida law enforcement consistently report high losses from business email compromise (BEC) and real estate wire fraud schemes. Criminals don’t need to hack your accounts—they only need to trick one person in the transaction chain.

Common fraud schemes aimed at Florida buyers

• Wire instruction spoofing: Fraudsters impersonate your agent, title company, or attorney and send “updated” wiring instructions.
• Compromised email accounts: A real inbox (agent, lender, buyer, or seller) is hacked, allowing criminals to monitor and time the attack.
• Fake escrow deposit requests: Scammers send links to “pay earnest money now,” leading to a convincing but fraudulent payment portal.
• Seller impersonation (for vacant land or quick flips): Criminals pose as the owner, rush a sale, then divert proceeds—sometimes pressuring buyers to wire faster.
• Payoff diversion: Criminals alter mortgage payoff instructions, redirecting funds meant for a seller’s lender.

How a wire fraud attack unfolds

1. Criminals gain visibility by phishing or monitoring a participant’s email.
2. They study timelines, signatures, and document styles to mimic real communications.
3. Right before closing, they send “revised” instructions from a lookalike address or a hacked account.
4. The buyer wires funds to the criminal’s account (often domestic first, then quickly moved offshore).
5. Recovery becomes difficult once funds leave the receiving bank—time is everything.

Legal protections for Florida buyers—what exists and what doesn’t

Florida has a strong regulatory framework around escrow funds and closing practices. Still, prevention is your best protection. Here’s how the law works for you:

• Real estate broker escrow accounts: Chapter 475, Florida Statutes, and FREC rules (61J2) require brokers to safeguard client escrow deposits, deposit funds promptly (typically by the end of the third business day after receipt), and reconcile trust accounts monthly.
• Title insurance agents and agencies: Title insurance professionals are licensed and regulated in Florida and must maintain separate fiduciary trust accounts for escrowed funds and follow strict disbursement rules.
• “Good/collected funds” standard: Florida closings generally require escrow agents to disburse only from cleared funds, adding another layer of protection once funds arrive in the right account.
• Closing Protection Letter (CPL): Issued by the title underwriter, a CPL protects you if the title agent misappropriates your funds or fails to follow the underwriter’s written instructions relating to the title policy. It does not cover you if you voluntarily wire to a criminal outside the agent’s control.
• Contract provisions: Florida’s standard purchase contracts caution against relying on emailed wiring instructions and often require funds be wired. Despite warnings, buyers must still verify instructions.
• Consumer remedies: Depending on circumstances, Florida’s consumer protection laws and negligence claims may apply. However, recovering money from cybercriminals or third parties can be uncertain and time-sensitive—again, prevention is critical.

Title insurance, escrow agents, and who safeguards your funds

Three types of professionals often handle escrow and closing in Florida. Understanding their roles helps you choose wisely and set clear safety protocols.

Practical safeguards you can use now

The Wire-Safe Closing Checklist

1. Establish a verification channel on day one: Get the title company’s phone number from its official website, store it, and agree on a verbal password.
2. Lock down your inbox: Enable multi-factor authentication (MFA) on your email and bank accounts. Update device software and use strong, unique passwords.
3. Insist on a secure portal: Have sensitive documents, including preliminary wire instructions, shared via an encrypted portal—not standard email attachments.
4. Confirm wiring instructions by voice: Call the title company using the number you independently sourced. Read the ABA routing number, account number, and account name out loud—digit by digit. Ask them to repeat it back.
5. Freeze the instructions: After verified by phone, treat those instructions as final. Any change means “STOP—re-verify.”
6. Use your bank’s safety tools: Set a temporary transfer limit; ask your bank to confirm beneficiary name match; schedule the wire early in the day for maximum recall window.
7. Send and confirm: Immediately after sending, call the title company to confirm receipt. Do not rely on email alone.
8. Paper trail: Save screenshots/receipts of your verification call notes, wire receipt, and confirmation.

Red flags that signal fraud

• Email domains that look “almost right” (extra letters, swapped characters).
• Last-minute changes to account info, bank name, or payment method.
• Requests to keep the change “confidential” or bypass normal procedures.
• Spelling/grammar errors, generic greetings, or unusual urgency.
• Instructions to wire to an individual instead of a licensed company.
• Phone numbers in emails that don’t match the company’s official website.
• Inconsistent account name and company name on the instructions.

What to do if you suspect fraud—or if you already sent funds

Your 0–72 hour emergency plan

1. Call your bank’s wire department immediately: Ask for a recall/freeze of the wire. For domestic wires, request an immediate recall and contact with the receiving bank’s fraud team. For international wires, request a SWIFT recall.
2. Notify the title/escrow company and your lender: Provide details so they can assist and alert other parties.
3. Contact law enforcement quickly: File a report at the FBI’s Internet Crime Complaint Center (IC3) and contact your local FBI field office. Fast reporting improves recovery odds.
4. File a police report in your local jurisdiction: Document the incident for potential insurance or legal claims.
5. Secure your digital accounts: Change passwords, enable MFA, and run security scans on devices.
6. Preserve evidence: Save emails, headers, attachments, and logs of all calls and steps taken.
7. Consult counsel: An attorney experienced in cyber and real estate matters can help escalate recovery efforts.

How Florida Buyer Broker™ protects you as your exclusive advocate

Most Florida agents operate as transaction brokers, which limits the extent of fiduciary duties owed to you. Florida Buyer Broker™ serves buyers exclusively, aligning every action with your best interest—including how your money is handled.

• We coordinate early with your title company to set up secure communications and call-back protocols.
• We review wire instructions with you, confirm phone numbers from verified sources, and help you document verification steps.
• We educate you on CPL coverage and ensure you receive the CPL from the title underwriter.
• We maintain a standing policy: any change in payment instructions triggers a pause and a three-way verification call.

“Your funds are irreplaceable. Our job is to slow things down when criminals try to speed them up.” — Florida Buyer Broker™

At-a-Glance Summary: Keep your closing funds safe

Frequently asked buyer questions

Does title insurance cover wire fraud?

No. Title insurance protects your ownership against covered title defects. It does not cover funds you voluntarily wired to a fraudulent account. A CPL may cover losses caused by the settlement agent’s misconduct, but not third-party spoofing.

Is a cashier’s check safer than a wire?

Wires are typically required due to “collected funds” rules and closing timelines. Cashier’s checks can be forged or delayed. Wires are safe when backed by a strict verification process.

Can my bank stop a wire?

Sometimes—if you act immediately. Banks can attempt a recall or freeze, especially if the funds are still at the first receiving bank. Time is critical.