Tips to Protect Your Transaction

Tips to Protect Your Transaction: Avoiding Fraud in Your Real Estate Transaction 

Fraud continues to rise across the real estate industry, and escrow is often a primary target. As brokers, your role on the front lines—educating clients, verifying information, and slowing down when something feels off—has never been more important. 

While added security measures can sometimes feel inconvenient, every safeguard exists for one reason: to protect your clients’ identities, funds, and the integrity of the transaction. Below are practical, real-world tips to help you and your clients reduce risk and avoid becoming the next fraud statistic. 

1. Set Expectations Early: Security Is Not Optional

From the opening of escrow, prepare buyers and sellers for enhanced security protocols. Encrypted communications, identity verification, and verbal confirmations are standard best practices—not obstacles. A few extra minutes upfront can prevent devastating losses later. 

According to FTC data, consumers lost over $10 billion to fraud in 2023. A five-minute verification call is a small price to pay for peace of mind. 

2. Separate Emails and Accurate Contact Information Matter

Each buyer and seller must have: 

• Their own unique email address 
• A valid phone number on file 

Shared email addresses create compliance issues and weaken the legal audit trail required for electronic signatures. If a dispute ever arises post-closing, unclear signatory records can become a serious liability for everyone involved. 

3. Always Verify Wire Instructions—Every Time

Wire fraud remains one of the most common and costly scams in escrow transactions. 

Best practices to reinforce with clients: 

• Wire instructions are sent securely and encrypted 
• Clients should call the escrow officer directly to verify instructions.  
• Important: Clients should find the phone number to their escrow office by completing an online search. Do not rely on the contact information in the wiring email or on the wire instructions. 
• Escrow will never accept wire changes via email or text 

Encourage buyers and sellers to slow down and confirm. Fraudsters rely on urgency and assumptions. 

4. Protect Seller ProceedswithStrict Controls 

Seller impersonation is increasing, fueled by AI and sophisticated phishing tactics. For that reason: 

• Seller proceeds forms must be accurate, complete, and properly notarized with original deposited with Escrow Holder 
• Changes cannot be accepted by phone or email 
• Corrections typically require a new original notarized document with original returned to Escrow Holder. 

Rushing this step creates unnecessary risk. Reinforce that accuracy protects their funds. 

5. Never Send Sensitive Information via Unsecured Email

One of the most common (and dangerous) mistakes: 

• Screenshots of wire instructions 
• Bank account numbers 
• IDs or passwords sent via email 

If it’s information you wouldn’t hand to a stranger, it doesn’t belong in an unsecured message. Encourage clients—and your team—to pause before sending sensitive data and use secure channels only. 

6. Know Your Clients—and the Transaction Story

Fraud isn’t limited to wires. New trends include predatory buyers who enter escrow with no intent to close, only to later pursue litigation against sellers, agents, or service providers. 

To protect yourself: 

• Ask thoughtful questions about motivation and property history 
• Vet referrals and cold leads carefully 
• Be cautious of deals that feel rushed, vague, or inconsistent 

With sellers, understanding ownership history and talking with neighbors can surface red flags early. Many fraudulent transactions have been stopped by simple conversations and local insight. 

7. Pick Up the Phone

Fraud thrives on impersonation and silence. It’s harder to scam someone who: 

• Knows their clients 
• Knows their escrow officer 
• Verifies information verbally 

Strong communication protects transactions and builds long-term professional relationships. Never hesitate to call your escrow team—we welcome it. 

Partnering to Protect Every Transaction 

Fraud prevention works best when brokers, escrow, lenders, and clients work together. Education, communication, and verification are the strongest tools we have. 

We value our relationships within the real estate community and appreciate the trust you place in us. Together, we can protect our clients, our reputations, and every transaction we handle.