How Do I Protect My Down Payment From Wire Fraud When I Buy a Home?

How do you protect your down payment from wire fraud when you buy a home in Orange County? You verify every set of wiring instructions by phone, using a number you already trust, before any money leaves your account.

I'm Jeanette Nelson, a REALTOR® with Jeanette Nelson Real Estate, Keller Williams Realty, serving Orange County, Huntington Beach, Costa Mesa, Fountain Valley, and surrounding areas. I talk through wire safety with every buyer at the start of escrow, so the plan is in place well before closing day.

The California Department of Real Estate describes how the scam works. A criminal poses as someone in your transaction, often the title company, the escrow company or an agent, and sends instructions that look real. Those instructions send your money to the criminal's account instead of escrow.

The messages can look very convincing. The DRE notes they may use real logos and personal details. The CFPB adds that scammers can copy email addresses, phone numbers and formatting. That's why the answer is a simple habit, not a sharp eye.

Set up your plan at the very start of escrow. Here are the steps the CFPB and the DRE recommend:

1. Choose two trusted contacts. The CFPB suggests picking two people, such as your agent and your escrow or settlement agent, and talking through how the money transfer will work in person or by phone.
2. Write down their direct numbers. The DRE says to get phone numbers from your agent and escrow holder at the beginning of the transaction and use those same numbers all the way through.
3. Consider a code phrase. The CFPB suggests a phrase known only to you and your trusted contacts, so you can confirm who you're speaking with.
4. Confirm by voice before you send. Call escrow at the number you wrote down and confirm the account name and number before you wire.
5. Keep financial details out of email. The CFPB says email is never a secure way to send financial information.

The DRE also suggests you consider other ways to pay, such as a cashier's check with a receipt. Ask your escrow officer which payment methods they accept.

Stop and don't send anything. The CFPB's advice is direct: never follow instructions contained in an email. The DRE says not to act on a change of wiring instructions you receive by email or phone call, even if it looks or sounds legitimate.

Here's what to do instead:

• Don't reply, click links or call any number in the message. Use the number you wrote down at the start.
• Call your escrow officer directly. Confirm whether anything changed.
• Call me too. I'll help you sort it out and loop in the right people.

A last-minute change, pressure to hurry or a request to keep it quiet are all reasons to slow down and call.

Speed matters most. If you think you've wired money to the wrong place, do these right away:

1. Call your bank's fraud line. The FBI's 2025 Internet Crime Report says to contact your bank immediately and request a recall of the funds. The DRE also says to contact your bank and the FBI immediately.
2. File a complaint at ic3.gov. The FBI's report says to file at www.ic3.gov regardless of the amount lost, and to include the full transaction details. IC3 may be able to help banks and law enforcement freeze the funds.
3. Call your escrow officer and your agent. They can alert everyone in the transaction.
4. Report it to the FTC. The FTC asks people to report wire scams at ReportFraud.ftc.gov.
5. Save everything. Keep the emails, the instructions and your wire receipt.

There is real reason to act fast. The FBI's 2025 Internet Crime Report describes a home closing where a buyer received an email pretending to be their attorneys. After a complaint was filed with IC3 and a freeze was requested, the full amount was found still in the account and placed on hold.

Recovery is never guaranteed. The FTC notes that wiring money is like sending cash, which is exactly why verifying before you send is the step that protects you.

If you're getting ready to buy, I'd love to walk you through your escrow and wire safety plan before you're in contract. Call or text me at 714.366.8575 | DRE: 01397168, or contact me. Jeanette Nelson is a REALTOR® with Jeanette Nelson Real Estate, Keller Williams Realty, serving Orange County, Huntington Beach, Costa Mesa, Fountain Valley, and surrounding areas.