The Closing Day Cyber Trap: How Hackers Target Client Funds at the Finish Line

Picture this: It’s the morning of a big real estate closing. Deeds and Mortgage notes are drafted, clients are ready to sign, and then, your client gets an urgent email “from you” with updated wire transfer instructions. They send the funds… straight into a hacker’s account.

If only it was always this obvious, lets make sure you are not liable for this breach.

Why Closings Are Prime Targets

Real estate closings move large sums of money fast, and that’s exactly what cybercriminals want. They don’t need to stop the closing to cause chaos; they just need to insert themselves at the right moment.

Wire fraud schemes at closing can:

• Divert hundreds of thousands in client funds

• Trigger lawsuits and liability disputes

• Damage your credibility with brokers and buyers

According to IC3, business email compromise (BEC) contributed heavily to the $16.6 billion in reported losses in 2024 — a reminder that even trusted email channels can be weaponized.¹

Three Ways to Protect Clients from Wire Fraud

1. Verify Every Transfer – Require phone confirmation using a trusted number before funds move — no exceptions.

2. Secure Your Inbox – Use email encryption and multi-factor authentication to make it harder for attackers to impersonate you.

3. Train Your Clients – Warn them about last-minute wire changes and make your verification process clear before closing day.

   
   

The Bigger Picture

Closings depend on absolute trust. One fraudulent wire request can undo years of client relationship-building. By locking down communication and setting client expectations early, you make it harder for scammers to get a foothold.

Your Takeaway

Review your wire transfer verification process this week. If it relies on email alone, it’s not secure enough. Protecting client funds isn’t just a best practice, it’s a core part of your reputation.

Want to see how we help protect real‑estate and legal practices from wire fraud? Visit our Law Firm IT Services page.

Want more? Here is a great eBook Protecting your business from within -> click to download yours

¹ https://www.nacha.org/news/fbis-ic3-finds-almost-85-billion-lost-business-email-compromise-last-three-years