Wire Fraud Is Targeting First-Time Home Buyers: What You Must Know

🛑 Wire Fraud Is Targeting First-Time Home Buyers: What You Must Know

Scammers are stealing home buyers’ life savings—and first-time buyers are most at risk.

Imagine getting ready to close on your dream home, only to find out the $30,000 you wired for the down payment has vanished. Unfortunately, this isn’t just a rare horror story—it’s happening every day in real estate transactions across the U.S., and first-time buyers are being targeted the most.

According to the 2025 State of Wire Fraud Report by CertifID, first-time home buyers are three times more likely to fall victim to wire fraud than experienced buyers. And while some may eventually recover their funds, most aren’t so lucky.

⚠️ Why First-Time Buyers Are at Greater Risk

Buying a home is a high-stakes transaction involving multiple people: real estate agents, lenders, title companies, attorneys—and most of the communication happens over email or text.

“You have multiple parties, large sums of money, and digital communication. That’s a dangerous mix,”
— Tom Cronkright II, CEO of CertifID and real estate fraud prevention advocate.

Add in the fact that most first-time buyers are unfamiliar with how wire transfers work, and you’ve got the perfect setup for fraud.

🔍 How Wire Fraud Happens

Fraudsters use increasingly sophisticated tactics to deceive buyers and intercept funds:

• Spoofed emails and websites that look identical to trusted contacts

• Fake wire instructions that redirect down payments or mortgage payoffs

• Hijacked email threads with real-time monitoring

• AI-generated voice cloning to mimic agents or escrow officers

Scammers are even targeting earnest money deposits—not just final payments.

📊 The Growing Threat by the Numbers

• 1 in 4 buyers receives a suspicious message during a real estate transaction

• 1 in 20 buyers actually falls victim to a scam

• 50% of home buyers are still unaware of wire fraud risks when they begin a transaction

• 35% of buyers say they rely on their real estate agent to warn and educate them

Clearly, awareness is improving—but there’s still a long way to go.

✅ What Buyers Can Do to Stay Safe

Whether you're a first-time buyer or not, follow these steps to protect yourself:

• Always verify wiring instructions by calling a known phone number—never use contact info from emails.

• Avoid last-minute changes to wire instructions. If they happen, treat it as a red flag.

• Use encrypted portals for document and communication sharing whenever possible.

• Report suspicious activity immediately to IC3.gov, the FBI’s cybercrime unit.

🛡️ How Real Estate Agents Can Help

Consumers expect agents to protect them—and many are willing to pay more for agents who take fraud prevention seriously.

Here’s what real estate professionals should do:

1. Educate Early

Include wire fraud disclosures in your buyer packet and have clients acknowledge the risks from the start. Make it a formal part of your process.

2. Host a Security Walkthrough

During your initial consultation, explain exactly how the money transfer process works and what to expect. Set expectations and explain how fraud usually unfolds.

3. Enforce Verification Protocols

Stress the importance of verbal verification via known phone numbers. Never trust instructions that come only via email.

4. Partner With Secure Providers

Only work with title companies and attorneys who prioritize digital security. Use trusted wire fraud prevention platforms like CertifID.

5. Promote Industry Awareness

Support initiatives like the Coalition to Stop Real Estate Wire Fraud (stopwirefraud.org) and share resources with your clients.

📣 Final Takeaway

Wire fraud is one of the biggest threats to real estate today—especially for first-time buyers. With more scams appearing and technology evolving, it’s critical that real estate professionals form a unified front to protect clients.

“The consumer shouldn’t have to piece together a fragmented fraud prevention strategy,” says Cronkright. “It’s on us to act as one team.”

If you're buying your first home, make sure you're working with professionals who take your financial safety seriously—and never let your guard down when it comes to wiring money.