Protecting Your Escrow Funds: How to Avoid Wire Fraud Scams in Florida

March 14, 2025

Technology has opened many doors over the last decade, making information more accessible, simplifying the collection of data, and harnessing digital innovation to protect people's physical assets. Unfortunately, wire fraud scams have grown in tandem with these developments, to the point that the most popular media can be repurposed to steal people's goods, money, and even their identity.

Recently, 10 Tampa Bay reported the surge of fraud scams across the states, citing numbers from the Federal Trade Commission. According to this data, Florida recorded 358,000 reports of fraud in 2024, including imposter scams and other types of wire fraud schemes.

The real estate industry is no stranger to the risks of wire fraud scams, and any real estate company working inside the state can tell you how the problem has impacted local transactions.

Defining Wire Fraud in Escrow

Wire fraud refers to scams that are committed with the aid of technology or digital devices. You've probably heard of at least one case where a victim gets scammed after receiving a suspicious phone call, email, or text in which they're tricked into sending funds and/or their private data under false pretenses.

When it comes to real estate transactions, scammers usually ask for a person's downpayment or closing costs, citing last-minute changes or other clever excuses that could sound reasonable without a closer look. If buyers, sellers, and real estate agents are not on the same page at different stages of the process, it's not that hard to make someone fall for these scams.  

Chances are you've heard the word 'phishing' much more often over the past couple of years. This is one of the most common forms of fraud and it can involve a variety of tricks. Common illegal practices in the real estate industry and other services include:

• A quick text asking for your financial information. Anyone can impersonate a bank representative and request your personal information for authentication purposes. They can also claim an update in their payment system or the option to qualify for special benefits.


• The same data could also be requested via phone call or by sending an invoice, with scammers going to great lengths to impersonate legitimate companies you might be affiliated with. They may even go as far as using artificial intelligence to clone the voice of real people working for these companies.


• Fake email accounts can often pass for the real thing. In many cases, the email address is nearly identical, save for one character, or the scammer manages to replicate the company's signature so you don't feel inclined to look closer into the account.


• When the company doesn't have the best protection system in place, scammers can get a hold of any of the company's accounts keeping funds, changing the account information, contacting clients, and getting access to people's financial data.

How To Detect Wire Fraud Scams

The risk of wire fraud scams adds new concerns to the process. For clients, it entails the loss of thousands of dollars and future investment opportunities. Meanwhile, title and escrow companies can lose the reputation they've built for years if they fail to prevent fraud while overseeing the closing process. That's why working with a licensed company is the surest way to identify the signs of wire fraud scam on time.

• Constant feedback: Communication between buyers and sellers starts from the moment a purchase offer is accepted and should stay consistent all the way to closing. The initial negotiations lay the groundwork on what to expect during the process, but you should still check with the other party through every step.
  
  For one, this helps you find a quick solution for problems like faulty titles or missing repairs. When it comes to preventing wire fraud, everyone can be on the same page regarding any new developments, like changes in the payment schedule or the distribution of closing costs. Your escrow company will save you many headaches along the way, simplifying communication and following up on requests. If something is done out of order, they will immediately inquire about it.


• Ask about the company's policies: Specifically, learn about their policies when handling private information. Usually, an escrow company won't ask for sensitive data via phone call or email, so you can identify a scam if they make specific requests involving your address, account passwords, etc.


• Save everyone's contact details: A scam is less likely to go unnoticed when everyone is using the same communication channels. Sellers, buyers, real estate agents, lawyers, and the escrow company should present their contact information from the start, with the understanding that they will be reached only via these channels.


• Check with the title company before making a payment: You can contact the recipient to double check the amount before making a transfer. Likewise, the title company can help you follow all the wiring instructions when depositing the earnest money, downpayment, and other closing costs. This is extra important if the payment terms are changed mid-process for any reason.


• Prioritize in person communication: You shouldn't follow instructions that are sent via email or text message. If you have questions about the steps to make a wire transfer, get in touch with the company so you know you're getting the instructions from a reputable source. Licensed title companies count on the necessary technology to encrypt their data, but the safest approach is to hash out all the details during an in-person meeting so you don't expose any information to a larger web.


• Negotiate closing costs early on in the process: There are many costs to cover before the title transfer, and keeping track can get particularly confusing if you've had to deal with unforeseen issues along the way. Many escrow disputes begin with the distribution of closing costs, and that's why we stress the importance of negotiating these costs early on- ideally, before putting your signature on a sales contract. If someone wants to make you cover more money than what you've agreed to pay, it's important to have a clear understanding of the cost distribution from the start.


• Monitor your accounts: It never hurts to check your accounts in between payments and to look into the balance in the escrow account as you prepare the closing date.

The Safest Way To Protect Your Escrow Funds in Florida

Avoid scams and protect your life savings during your real estate transaction! Key Title & Escrow is ready to provide the support you need so you don't fall for a wire fraud scam. We've always counted on the best technology to meet our client's needs, and our resources have continued to evolve alongside the market's innovations. If there's a shady practice, our specialists won't miss the signs, and we'll help you take measures before you can suffer any financial loss.

We'll be happy to give you more in-depth information, so don't hesitate to call (305) 235-4571 or toll-free at (800) 547-0006. You can also contact us via the contact form on this page, and we'll be happy to assist you. Do yourself a favor and let Key Title & Escrow provide the assistance you need during your closing!