Closing on a Home in Texas? How to Verify Wire Instructions and Avoid Closing Fraud

Why closing funds attract scammers

A buyer may be coordinating documents, deadlines, and a move at the same time. Criminals exploit that pressure. They might copy an email signature, use an address that differs by one character, or enter an existing email conversation after an account has been compromised. A message may claim that the closing date changed, that payment must arrive immediately, or that the receiving bank has been updated.

The FBI describes this kind of deception as business email compromise. In real estate transactions, the goal is often to redirect money meant for the legitimate closing account. A familiar name or an email that appears in a genuine conversation does not prove that the instructions are safe.

How to verify closing wire instructions

Start before you receive a payment request. Save the title company’s phone number from its official website, your signed closing paperwork, or an in person conversation. Ask your closing team how and when you should expect instructions, whether your transaction requires a wire, and whom you should contact with questions. Payment methods and timing vary by transaction. Ask early whether your bank has transfer limits or cutoffs, so you can plan adequate time for verification without rushing on closing day.

When instructions arrive, pause and call the number you saved. Ask the title company to confirm the recipient name, bank, account details, and amount through its established verification process. If the person you reach cannot confirm the information, do not send the money. Contact your escrow officer through another known channel and wait until the discrepancy is resolved.

Do not verify by replying to the suspicious email, calling the number in it, or clicking its links. Those routes could lead back to the scammer. The same caution applies to a text message, an attachment, or a document that looks like a revised closing statement.

Your bank may ask questions about the transfer. Answer carefully, but remember that a bank accepting your request is not a substitute for confirming the recipient with the title company. Keep a record of whom you spoke with and when you verified the details.

Warning signs that deserve a second call

Treat an unexpected change to the receiving account as a reason to stop. So is pressure to act within minutes, a request to keep the payment secret, or a message that discourages a phone call. Spelling errors can be clues, but polished writing is no guarantee of authenticity.

Check the full sender address, not just the display name. A fraudster might use a similar domain or a personal account while pretending to represent a business. Still, even an apparently correct address could be compromised. Independent phone verification remains the safer step.

If you receive conflicting instructions from an agent, lender, or title representative, do not guess which version is current. Bring the parties together through contact information you already trust. A brief delay to resolve a mismatch is preferable to sending funds to an unverified account.

What should you do if you sent a wire to the wrong account?

Act immediately. Call your bank’s fraud department, explain that the wire may be fraudulent, and request a recall or any available hold. Then call the title company using its independently verified number so it can check whether the funds arrived and help document the discrepancy.

Report the incident to the FBI’s Internet Crime Complaint Center at IC3.gov and consider contacting your local FBI field office. Share the transfer date, amount, destination account, transaction reference, and relevant messages with the bank and investigators. Preserve emails, texts, attachments, and screenshots. Time matters, and recovery is not guaranteed.

Do not send a second payment because an unfamiliar caller says it will reverse the first. Verify any new request directly with the real closing team. Ask your bank and title company what steps are needed for the scheduled closing.

Does title insurance cover a stolen closing wire?

Title insurance concerns covered problems with ownership or the property’s title, such as certain liens, errors, or competing claims. It should not be assumed to reimburse money sent to a fraudulent bank account. Coverage depends on the actual policy and facts of a claim. If you have questions about a policy, request a copy and discuss its terms with the issuing title company.

Understanding the distinction helps buyers plan. Read about the title insurance process to see how ownership risks are reviewed, and learn about the escrow process to understand how funds and documents are coordinated before closing. For the full sequence of steps, see Powerhouse Title’s closing process guide.

A simple checklist before you send closing funds

• Confirm the amount due against your final closing information.
• Use a phone number obtained independently to reach the title company.
• Verify the receiving details with the authorized closing team.
• Question any last minute change, even if the message looks familiar.
• Keep your bank confirmation and notify the title company after sending.
• If something seems wrong, stop and call before transferring money.

Texas buyers, sellers, and real estate professionals all benefit from a clear payment plan. The best time to learn the verification steps is before a deadline makes every message feel urgent. If you are closing with Powerhouse Title, contact the team through its official website or a phone number you have already verified to discuss your transaction and confirm the next step. A careful call before sending funds can protect one of the most consequential payments in your purchase.