Wire Fraud at Closing: How Downsizing Sellers Can Protect Their Home Equity

For many Marlborough and MetroWest homeowners, the family home is their largest financial asset. After twenty, thirty, or forty years of ownership, the equity built up in that home often represents retirement security, the funds for a move to a smaller home or senior living community, and a legacy for the next generation. That is exactly why the closing has become a target for criminals.

According to the FBI's Internet Crime Complaint Center, Americans reported more than $275 million in losses tied to real estate transactions in 2025, up from about $173 million the year before. As we continue our series for Cybersecurity Awareness Month, this post focuses on how wire fraud works at closing, the warning signs every seller should know, and the simple habit that stops most of these scams before any money moves.

Why Do Scammers Target Home Sellers at Closing?

Most people think of wire fraud as a buyer's problem, since buyers send large sums for their down payment and closing costs. Sellers are targets too. At closing, the proceeds from the sale are paid out to the seller, and an existing mortgage may be paid off at the same time. If a criminal can convince a seller, or someone handling the transaction, to send those funds to the wrong account, the money can disappear within hours.

Long-time owners are especially attractive because they often have little or no mortgage left, which means a larger payout at closing. Downsizing sellers are also juggling a great deal at once, from sorting decades of belongings to coordinating a move, and scammers count on that busy, emotional season to rush decisions.

How Does Wire Fraud at Closing Work?

Most closing scams begin with email. Criminals may gain access to an email account belonging to someone involved in the sale, or they may create an address that looks nearly identical to a real one. Then they watch and wait for the right moment.

Spoofed Emails From "the Attorney"

In Massachusetts, a closing attorney typically handles the closing and the disbursement of funds, so an email that appears to come from the attorney's office carries a lot of weight. A spoofed message may use the correct names, reference your actual property address, and match the tone of earlier emails. Small details give it away, such as a single changed letter in the email address, a different reply-to address, or a phone number in the signature that does not match the one you were given at the start. Remember that you should never provide your wire instructions by email, no matter who appears to be asking.

Last-Minute Changes to Wire Instructions

The most common version of this scam is a message saying that payment instructions have changed. For a seller, that might be a request to "confirm" or "update" the bank account where your proceeds will be sent, often through a form or attachment. For a payoff, it might be a notice that your lender's wiring details are different than expected. These messages often arrive close to the closing date and stress urgency, such as "please reply today so we can keep your closing on schedule."

Phone Calls That Feel Official

Some scams add a phone call to make the request feel legitimate. The caller may know details about your sale and ask you to read back account numbers or personal information to "verify your identity." A call that you did not initiate, to a number you did not dial, is not verification.

What Are the Warning Signs of a Closing Scam?

• Changed instructions. Any email or text that changes where money should be sent, or asks for new bank account details.
• Urgency. Pressure to act today, often with a warning that your closing will be delayed if you wait.
• Unfamiliar contact details. An email address, phone number, or name that differs even slightly from what you were given before.
• Requests to keep it quiet. A message asking you not to call or not to involve anyone else.
• Links and attachments. A request to enter banking information through a link or to open a form you were not expecting.

How Can Sellers Protect Their Closing Funds?

The Consumer Financial Protection Bureau recommends a few straightforward steps that we encourage every seller to adopt from the day they list their home:

1. Identify your trusted contacts early. Write down the names and direct phone numbers of your attorney and your real estate agent at the start of the sale, before any money is discussed.
2. Talk through how you will be paid. Ask your attorney, by phone or in person, how your proceeds will be delivered and how any instructions will be shared with you.
3. Verify every instruction by phone. Before you share account information or rely on payment details, call a trusted contact using the number you wrote down and confirm the account name and number directly.
4. Avoid acting on email links, attachments, or phone numbers until you have confirmed them with your trusted contacts.
5. Do not send financial information by email. Account numbers and Social Security numbers should be shared through secure methods your attorney provides.
6. Be wary of unexpected calls. If someone calls asking you to confirm personal or financial details, hang up and call your trusted contact directly.

How Can Adult Children Help a Parent Who Is Selling?

Many of the families we work with include adult children helping a parent through a downsize, sometimes from out of state. You can play a valuable role in protecting the sale without taking over. Help your parent create a simple contact sheet with the attorney's and agent's names and numbers, and agree together that any change to payment instructions will be confirmed by a phone call to one of those numbers. Offering to be a second set of eyes on closing emails, especially in the final week, can make all the difference. You will find more ideas for supporting a parent in our first post in this series, Protecting Older Adults From Financial Scams.

What Should You Do if Something Goes Wrong?

If you believe you have sent money or account information to a scammer, act right away. Time matters when it comes to recovering funds.

• Call your bank or wire transfer company immediately and ask them to recall the wire.
• File a complaint with the FBI's Internet Crime Complaint Center at IC3.gov.
• Notify your attorney and your real estate agent so they can alert everyone involved in the transaction.
• If the person affected is age 60 or older, concerns about financial exploitation can also be reported to the Massachusetts Elder Abuse Hotline at 1-800-922-2275.

Please remember that these criminals are skilled professionals. Being targeted is not a reflection of anyone's judgment, and reporting quickly helps protect others too.

A Calm, Well-Planned Closing Starts Early

As an SRES team, we know that selling a long-time home is about far more than the transaction. It is the start of your next chapter, and the equity you have built deserves the same care you have given your home over the years. We walk every client through how communication and payment will work at closing, introduce trusted local attorneys, and stay available by phone whenever something does not look right. Learn more about how we support older homeowners and their families on our Senior Transitions page.

Frequently Asked Questions

Can sellers be targeted by wire fraud, or only buyers?

Sellers can be targeted too. Scammers may send fake requests for a seller's bank account information so that sale proceeds are sent to an account they control, or they may impersonate a seller to redirect the payoff of an existing mortgage. Long-time owners with significant equity are especially attractive targets.

Will my attorney ever change wire instructions by email?

Treat any email that changes wire or payment instructions as a red flag. Before sending money or sharing account details, call your attorney or real estate agent using a phone number you already have, not one listed in the email, and confirm the instructions directly.

What should I do if I think I sent money to a scammer?

Contact your bank or wire transfer company immediately and ask them to recall the wire. Then file a complaint with the FBI's Internet Crime Complaint Center at ic3.gov and let your attorney and real estate agent know. Acting quickly gives the best chance of recovering funds.

How can adult children help a parent who is selling their home?

Help your parent write down the names and phone numbers of their attorney and agent at the start of the sale, and agree that any change to payment instructions will be confirmed by a phone call to one of those numbers. Being available as a second set of eyes on closing emails can also make a big difference.