Real estate transaction fraud is rising at an alarming rate. According to CertifiD, a real estate fraud prevention company, nearly one in four homebuyers reported receiving a fraudulent or suspicious communication during their real estate closing in 2025.
“Real estate transactions are increasingly vulnerable to sophisticated fraud schemes,” says Tom McCormick, the 2026 Chairperson for the Greater Milwaukee Association of REALTORS® board of directors and broker/partner of EXIT Elite Realty. “REALTORS® understand the risks and help buyers and sellers safeguard their investment throughout the process.”
Wire Fraud Tops the List
“Wire fraud is the biggest thing buyers should be aware of,” says Beth Jaworski, a REALTOR® with Shorewest Realtors. “It’s been around a long time and is only getting worse.”
FundingShield, a company specializing in fraud prevention, notes that nearly 47% of real estate transactions showed signs of wire or title fraud in the early months of 2025.
How Wire Fraud Works
In a typical scheme, criminals trick buyers or sellers into sending money to fraudulent accounts. Theygain access to email accounts of buyers, sellers or real estate professionals where they monitor communications for upcoming closings. By impersonating legitimate parties during a real estate transaction, fraudsters send convincing – but fraudulent – instructions to wire closing funds to a fake account.
According to Cheri Hipenbecker, general counsel with Knight Barry Title Group, the growing sophistication and scale of wire fraud attempts is influenced by hundreds of thousands of scammers around the world using AI technologies.
“They create highly convincing emails and documents that closely mimic legitimate communications, making it harder for buyers and sellers to spot fraudulent instructions,” says Hipenbecker. “These technologies can also help fraudsters automate large-scale attacks, increasing both the frequency and sophistication of wire fraud attempts.”
Safeguarding Wire Transactions
Wire victims who mistakenly transfer funds may find it nearly impossible to recover their money since it usually moves overseas quickly. Knowing the warning signs before sending funds is one of the safest ways to prevent wire fraud. Sudden changes to wiring instructions, requests for urgent transfers, or emails from addresses that vary slightly from those previously used indicate fraudulent activity is underway.
If a home buyer receives a suspicious email during a real estate transaction, they should avoid responding to the message or clicking on any links or attachments it contains.
“When buyers receive wire instructions for the down payment and/or closing costs they should independently verify those,” says Jaworski. “Offline, the buyer should immediately call their REALTOR® or use a trusted phone number for the title company and/or lender – never the phone number provided in the email with the wiring instructions.”
Additionally, the homebuyer should report the suspicious email to the appropriate authorities, such as the Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3) or local law enforcement. Saving the email and any related correspondence can also assist investigators if fraud is suspected.
By remaining vigilant and verifying all communications independently, buyers can significantly reduce the risk of falling victim to wire fraud schemes.
Title Fraud and Deed Theft
Title fraud represents another growing area of concern.
The National Association of REALTORS® (NAR) reported a 12% increase in title fraud cases in 2025, with metropolitan areas facing the most risk. Title fraud, often referred to as deed theft, occurs when criminals forge documents to transfer the ownership of a property without the true owner’s knowledge. These fraudsters may then attempt to sell the property, take out loans against it or even evict current occupants.
The consequences of deed theft are severe and can include lengthy legal battles to reclaim ownership, financial losses and emotional distress. Elderly homeowners and those with second or vacant homes are especially vulnerable to this kind of exploitation.
Hipenbecker suggests homeowners take proactive action by regularly checking public records for unauthorized changes to property ownership.
“People can easily sign up for a free notification service through the Wisconsin Register of Deeds Association’s website (wrdaonline.org/notification-recording). The service provides notification of when documents have been recorded so homeowners can verify their legitimacy,” she says.
REALTORS® Help Protect Buyers from Fraud
Working with a REALTOR® provides a critical layer of protection since they undergo training to recognize the warning signs of fraud. They use secure communication channels for sensitive information, verify all parties’ identities and coordinate with trusted title and escrow companies to ensure that funds and documents are handled safely.
Additionally, REALTORS® educate their clients about common scams, help verify wiring instructions directly with closing agents and provide guidance on best practices throughout the transaction. Their expertise and oversight ensure a seamless closing and prevent devastating financial loss.
The REALTOR® Advantage
A REALTOR® is a member of the National Association of REALTORS®, is committed to a Code of Ethics and has the expertise to find the right home for everyone. Look for the “R” to determine if your agent is a REALTOR®.
Locally, the Greater Milwaukee Association of REALTORS® is a 5,500-member strong professional organization dedicated to providing information, services and products to help REALTOR® help their clients buy and sell real estate. Visit gmar.com for more information.