Closings glossary

Wire fraud

A fraud in which spoofed or compromised email redirects closing funds. Verifying instructions by phone at a number obtained independently is the standard defense.

How does closing wire fraud happen?

Quick Answer

Closing wire fraud happens when a criminal monitors email traffic in a transaction and sends spoofed instructions that divert the buyer's funds to an account they control. The message looks like it came from a party to the deal, and recovery after the wire leaves is rarely possible.

The full definition

A fraud in which spoofed or compromised email redirects closing funds. Verifying instructions by phone at a number obtained independently is the standard defense.

Where does wire fraud come up in a New York City closing?

A buyer receives updated instructions the night before a Queens closing, calls the number on the earlier signed retainer, and learns they were fake.

What else should you read before closing?

Have a closing coming up?

Tell us about the transaction. An attorney reads every intake form and responds the same business day.

Legal Disclaimer: This page is general information about New York practice. It is not legal advice, it does not account for the terms of any particular contract, building or transaction, and reading it does not create an attorney-client relationship. This is attorney advertising. Prior results do not guarantee similar outcomes.