General information, not legal advice

Real Estate Wire Fraud and Closing Scams

Your down payment and closing costs may be the largest amount of money you ever move at one time, and scammers know it. Federal agencies have warned for years that criminals pose as real estate agents, title companies and closing attorneys to steer closing funds into accounts they control. This guide explains how the scam works and how to protect your money when you buy or sell in Manchester or anywhere in Coffee County, based on the federal Consumer Financial Protection Bureau (CFPB), the FBI Internet Crime Complaint Center (IC3) and the Coffee County Register of Deeds.

This is general information, not legal advice. If you think you have been targeted, call your bank first, then the people on your closing team at numbers you already trust.

How the scam works

The CFPB explains that scammers try to break into the email of real estate professionals so they can read messages with clients and learn about upcoming closings. Then, during the closing process, they send the buyer a fake email that looks like it comes from the agent, the settlement agent, an attorney or another trusted person, with false instructions for wiring the closing funds.

The FBI says this scheme targets everyone in a real estate transaction: buyers, sellers, real estate attorneys, title companies and agents. Once a criminal is inside an email account, IC3 says they watch the deal and time their request, often asking to change the payment method, frequently from a check to a wire, or to switch from one bank account to another account they control. IC3 also notes that the money can be moved on quickly to a second account, in this country or overseas.

Why it matters

The FBI tracks it. In its 2025 annual report, IC3 counted 24,768 business email compromise complaints, the category that includes real estate wire fraud, with reported losses of $3,046,598,558.
Real estate cases have grown. In a June 2023 alert, IC3 said victim reports of business email compromise tied to real estate rose 27 percent from 2020 to 2022, and reported losses rose 72 percent over the same years.
Tennessee is not immune. The same 2025 report lists 16,261 complaints from Tennessee across all types of internet crime, with $269,214,519 in reported losses.

Before closing: set up your safety plan

The CFPB recommends doing this early, before any money moves:

Pick two trusted people. Choose two people, such as your agent and your settlement agent, who can confirm the closing process and payment instructions. The CFPB closing checklist has a place to write down their names and phone numbers.
Talk it through in person or by phone. Agree on how money will be sent and who will send instructions. The CFPB suggests being cautious about sharing closing details by email, and you may want to set a code phrase known only to you and those trusted people.
Save the numbers now. Get phone numbers in person, from your signed paperwork or from the company's own website, not from an email. Save them before closing week.
Keep financial information out of email. The CFPB says email is never a secure way to send financial information.

Before you send any money

This applies to your earnest money deposit as much as your cash to close. My earnest money guide explains who holds that deposit and when it is due.

Call before you wire. The CFPB says to confirm the instructions, including the account name and number, with your trusted people in person or by calling the phone number you agreed on earlier.
Never follow instructions in an email alone. Scammers can closely copy an email address, a phone number and the look of real messages. Do not use phone numbers or links in an email, and do not open attachments until you have confirmed them by phone.
Check the email address itself. IC3 suggests checking that the sender address and any links match the business they claim to be from, watching for small misspellings, especially on a phone screen.
Be careful on the phone too. The CFPB warns that a call can also be fake. If someone calls asking you to confirm personal or financial details, hang up and call your trusted contact back.
Ask about other ways to pay. The CFPB closing checklist lists a cashier's check and a wire transfer as ways to pay at closing. Ask your closing agent which they accept and how to deliver it.
Call after you send. Once the money is sent, call your closing agent at your saved number and confirm it arrived.

Red flags to stop on

An email, text or call saying the wiring instructions or bank account have changed
A request to switch from a check to a wire at the last minute
Pressure to send money right away or the closing will be delayed or canceled
A sender address, website or phone number that is slightly different from the one you know
A request to send account numbers, passwords or your Social Security number by email

If you see any of these, stop. Do not reply to the message. Call your agent or closing agent at the number you saved.

If money goes to the wrong account

Time matters most. IC3 says that if you discover a fraudulent transfer, time is of the essence.

Call your bank or wire company right away. Tell them the wire was sent because of fraud and ask for a wire recall. IC3 says banks have different policies, so ask what help they can give and what forms they need.
File a complaint at ic3.gov. IC3 says to file regardless of the amount lost and to include the full transaction details. Its 2025 report says its Recovery Asset Team worked 3,900 incidents and helped freeze $679,013,183, a 58 percent success rate, by working with banks and FBI field offices. Freezing money is never guaranteed, which is why the first few hours count.
Call your closing team at the numbers you trust, not the numbers in the suspicious message.
Contact local law enforcement. IC3 says that if your matter is time sensitive, you should contact local law enforcement directly, because IC3 forwards complaints to agencies and does not run the investigation itself.
Report to the FTC too. At ReportFraud.ftc.gov, the FTC says reports are shared with more than 2,000 law enforcers, though the FTC cannot resolve individual reports.
Report the bank side. The CFPB says that if you have a problem with a wire transfer, contact the company right away, and you can also submit a complaint to the CFPB.

What IC3 asks for, and what to save

IC3 says its complaint form asks for your contact information, the account information, transaction date and amount, who received the money, and any details about the person who conducted the crime, such as names, email addresses, phone numbers and websites. Email headers help if you have them.

IC3 does not accept attachments, so keep the originals in a safe place: wire receipts, bank statements, and electronic copies of the emails with their full headers. IC3 also says to save or print a copy of your complaint when you submit it, because that is the only time you can keep a copy.

Watch out for recovery scams

After a loss, more scammers may come calling. IC3 says it does not work with any non law enforcement group, such as law firms or crypto services, to get lost money back, and that it will never contact you directly for information or money. Anyone who promises to recover your money for a fee is a warning sign.

Sellers and landowners: impersonation scams

Wire fraud can hit sellers too, by redirecting sale proceeds. In a June 16, 2026 alert, the FBI also warned about criminals who pose as the owners of vacant land and try to sell it without the real owner knowing. IC3 says they use fake IDs, new email addresses and internet phone numbers, contact a local agent and title company, and ask for the sale money to be sent to someone in another state.

The FBI lists these warning signs of a fake seller:

Communicates only by email, text or internet phone and will not meet in person
Wants to close fast and may offer the property below market value
Knows little about the property or lacks documents such as a survey or tax information
Asks to be paid by international wire, or to an account in a different name or an unrelated location
Has a deed notarized in a foreign country or other unusual paperwork

To protect yourself as an owner, the FBI suggests signing up for any county service that alerts you when a document is recorded in your name, and reviewing what your owner title insurance policy covers. When buying, it suggests sending a certified letter to the owner address on the property tax record to confirm the seller is real. If you own land you do not live on, my selling land guide and buying land guide cover the rest of the land checklist.

Sign up for the Coffee County Fraud Alert

The Coffee County Register of Deeds asks Coffee County residents and businesses to register for its Fraud Alert, which it says will notify you if a lien is filed in your name. It is a simple step for any owner, and it pairs well with an owner title policy, which my title insurance guide explains. The Register's office is at 1341 McArthur Street, Suite 2, in Manchester, (931) 723 5130.

A wire safety checklist

Pick two trusted people and save their numbers before closing week
Agree in person or by phone on how money will be sent
Never act on wiring instructions from an email alone
Call a saved number to confirm the account name and number before you send
Call again after you send to confirm the money arrived
Keep account numbers and your Social Security number out of email
If something goes wrong, call your bank first, then file at ic3.gov

How I help

I talk through how money will move at the very start, so you know who will send instructions and how to confirm them. I will never change wiring instructions by email, and if you ever get a message that looks like it is from me asking you to send money somewhere new, call me at (615) 497 1658 before you do anything.

Keep reading:

Fair housing note: I work with every buyer and seller, and I help everyone protect their money the same way.

This guide is general information from public sources, not legal advice. Scams and agency guidance change, so confirm the details with your bank, your closing attorney or title company, and law enforcement.

Buying or selling in Manchester or Coffee County?

I can walk you through the closing timeline and how your money will move, so there are no surprises. Call or text me at (615) 497 1658, or get my free buyer guide below.

Common questions

How do I avoid wire fraud when buying a house?

The CFPB says to pick two trusted people, such as your agent and settlement agent, agree in person or by phone on how money will be sent, and confirm the account name and number by calling a phone number you agreed on earlier. Never follow wiring instructions that arrive in an email.

Do wiring instructions ever change by email?

Treat any email, text or call that changes the wiring instructions or bank account as a red flag. The FBI says criminals often ask to switch the payment method, frequently from a check to a wire, or to move the money to a different account. Call a saved number before you send anything.

What should I do if I wired closing money to a scammer?

Call your bank or wire company right away and ask for a wire recall. Then file a complaint at ic3.gov with the full transaction details, call your closing team at numbers you trust and contact local law enforcement. IC3 says time is of the essence.

Can the FBI get my money back?

Not always. IC3 says its Recovery Asset Team works with banks and FBI field offices to freeze funds, and in 2025 it helped freeze $679,013,183 across 3,900 incidents, a 58 percent success rate. IC3 says it never charges fees and never works with private recovery services.

Do sellers need to worry about wire fraud?

Yes. The FBI says these schemes target buyers, sellers, attorneys, title companies and agents. Sellers should confirm payoff and proceeds instructions by phone, and owners of vacant land should watch for impersonation scams where criminals try to sell land they do not own.

Does Coffee County offer a property fraud alert?

Yes. The Coffee County Register of Deeds asks residents and businesses to register for its Fraud Alert on the Register website, which it says will notify you if a lien is filed in your name.

Matt Sargent is a Tennessee licensed affiliate broker with Keller Williams who helps buyers and sellers in Manchester and Coffee County. Call (615) 497 1658 or send a message.