Wire fraud is one of the biggest threats to the real estate industry. 2,260 victims of real estate wire fraud were reported to the U.S. Financial Crimes Enforcement Network (FinCEN) in 2020-2021 alone. The total damage? More than $893M.
Real estate transactions are complex. They involve a lot of money and a lot of people.
And much of the information scammers need to trick you is publicly available on the internet.
On top of all that, the COVID-19 pandemic led to a rapid growth in digital closings without a safety net.
All of these factors make residential real estate transactions especially vulnerable to fraud.
Average number of parties
involved in real estate
Source: Rocket Mortgage
Median home price in
Growth in digital closings
from 2019 to 2021