Protecting Yourself From Wire Fraud During the Mortgage Process

Buying a home comes with plenty of moving pieces. Between inspections, paperwork, underwriting, appraisals, and preparing for closing, you're juggling a lot of information and working with several different people.

Unfortunately, cybercriminals know that.

Homebuyers have become a common target for cybercrime because large sums of money change hands in a relatively short period of time. Scammers often impersonate lenders, title companies, attorneys, or real estate agents in an attempt to redirect closing funds or collect personal information.

Fortunately, most of these scams rely on one thing: catching someone off guard. Knowing what to watch for is one of the best ways to protect yourself.

What Is Wire Fraud?

Wire fraud typically happens near closing, when you're preparing to send your down payment or closing costs.

A scammer sends an email that appears to come from someone involved in your transaction. It may include company logos, familiar names, and details about your loan. The message often says there has been a last-minute update to the wiring instructions and asks you to send your funds to a different account.

The email can look convincing enough that many people don't realize anything is wrong until after the money has been sent.

Because wire transfers move quickly, recovering stolen funds can be difficult. That's why taking a few extra minutes to verify instructions before sending money is so important.

How to Stay Protected Against Wire Fraud

Before sending money for your earnest deposit, down payment, or closing costs, pick up the phone.

Call your title company or closing agent using a phone number you've already verified and confirm the wiring instructions directly.

Don't use the phone number listed in the email. If the email itself is fraudulent, the contact information may be, too.

If you receive updated wiring instructions after they've already been provided, pause and verify them again. Changes do happen occasionally, but they should always be confirmed through a trusted source.

Emails Aren't Always What They Seem

Cybercriminals have become very good at making emails appear legitimate. A familiar logo or signature doesn't guarantee that the message is authentic.

A few things should make you pause:

• The sender's email address is slightly different than usual.
• The message creates unnecessary urgency.
• You're asked to click a link to verify personal information.
• The email includes unexpected attachments.
• The wording feels unusual or out of character.

When something feels off, trust that instinct. Reach out to your loan officer directly instead of responding to the email.

Keep Your Personal Information Secure

Throughout the mortgage process, you'll be sharing documents that contain sensitive financial information.

Whenever possible, upload documents through your lender's secure portal rather than sending them through regular email. It's also worth taking a few minutes to strengthen the security of your online accounts.

Using unique passwords, enabling multi-factor authentication, and avoiding public Wi-Fi while accessing financial accounts all add another layer of protection.

How Luminate Bank Helps Protect Your Information

Keeping your information secure is part of every mortgage we originate.

Our team uses secure technology and established security procedures designed to help protect your personal information throughout the loan process, including secure document-sharing tools, encrypted systems, identity verification procedures, and ongoing employee training focused on cybersecurity best practices.

Security is a shared responsibility, and we're here to help if something ever seems unusual.

How to Respond if Something Doesn't Feel Right

Not every suspicious email turns out to be fraud, but every suspicious email deserves a second look.

If you receive an unexpected request involving money, wiring instructions, passwords, or sensitive information, don't feel pressured to respond immediately.

Give your loan officer a call.

We'd much rather spend a few minutes confirming a request than have you wonder whether it was legitimate.

Quick Tips Before You Send Funds

• Verify wiring instructions by phone every time.
• Use a trusted phone number, not one included in an email.
• Upload documents through secure portals whenever possible.
• Be cautious of unexpected emails requesting personal information.
• Contact your loan officer if something doesn't seem right.

Frequently Asked Questions

Why are homebuyers targeted by wire fraud?

Buying a home involves large financial transactions and multiple people working together. Criminals take advantage of that complexity by impersonating trusted contacts involved in the transaction.

Should I trust wiring instructions sent by email?

No. Even if the email appears legitimate, always verify wiring instructions over the phone before sending funds.

Can wiring instructions change before closing?

Occasionally, but any changes should be confirmed directly with your title company or closing agent using a trusted phone number.

Is it safe to send financial documents through email?

Your lender's secure portal is the safest place to upload documents containing personal or financial information. If you're unsure where to send something, ask your loan officer first.

What should I do if I think I've received a fraudulent email?

Don't click links, download attachments, or reply to the message. Contact your loan officer directly using the phone number you've already verified.

What happens if I accidentally wire money to the wrong account?

Contact your bank immediately to request a wire recall, then notify your loan officer and title company as quickly as possible. Acting quickly offers the best chance of recovering funds