$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
down payment redirect scam
A fraudulent email intercepted during a real estate transaction redirects the buyer's down payment to a criminal's account by providing altered wiring details.
“real estate scam”
↑ 282%Key indicators
Usually targetsHomebuyers
Often hitsFreelancers and contractors
Common regionUnited States
Last updated2026-04-04
Estimated impact
$126K
median reported loss
Typical range$18K – $720K
Recovery rate~10%
Annual reports9,521
Scam breakdown
1
Hackers gain access to email communications between the buyer and their real estate or title representative.
2
At the critical moment when the down payment wire is expected, they send an email with fraudulent bank account details.
3
The buyer, under time pressure to close, wires the down payment — often tens or hundreds of thousands of dollars — to the wrong account.
What to do first
Never wire money based solely on email instructions — always confirm by phone using a known, verified number.
Related terms
down payment theftdeposit redirect scamhomebuyer wire fraudReal estate wire fraudEmailRisingHomebuyersFirst-time buyersFreelancers and contractorsSmall business ownersPayroll, HR, and finance teamsUnited StatesCanadaAustraliadown payment theftdeposit redirect scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Christopher, 35, a homebuyers, encountered what appeared to be a legitimate real estate wire fraud situation while using Email. Hackers gain access to email communications between the buyer and their real estate or title representative.
Step 2
What happened next was calculated: At the critical moment when the down payment wire is expected, they send an email with fraudulent bank account details.
Step 3
The pressure escalated quickly: The buyer, under time pressure to close, wires the down payment — often tens or hundreds of thousands of dollars — to the wrong account.
The outcome
Christopher realized something was wrong when wire instructions arrive in a separate email from the rest of the closing communications. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Never wire money based solely on email instructions — always confirm by phone using a known, verified number. Christopher's experience shows why wire instructions arrive in a separate email from the rest of the closing communications and the account is at a different bank than the title company previously mentioned are the clearest early warning signs.
How to identify it
- Wire instructions arrive in a separate email from the rest of the closing communications
- The account is at a different bank than the title company previously mentioned
- Email requests immediate action and warns that delays could jeopardize closing
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Never wire money based solely on email instructions — always confirm by phone using a known, verified number.
- ✓Ask your title company and real estate agent to establish wire instructions at the start of the process, not at the last minute.
- ✓If you suspect a fraudulent wire, contact your bank's fraud department and the FBI IC3 within 24 hours.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Keep the full sender address, domain, attachments, and—if possible—the raw email headers.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The FBI reports that real estate-related business email compromise accounted for over 446 million USD in losses in 2023.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Never wire money based solely on email instructions — always confirm by phone using a known, verified number.
- ✓Ask your title company and real estate agent to establish wire instructions at the start of the process, not at the last minute.
- ✓If you suspect a fraudulent wire, contact your bank's fraud department and the FBI IC3 within 24 hours.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The FBI reports that real estate-related business email compromise accounted for over 446 million USD in losses in 2023.
FBI IC3 2024
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Homebuyers, First-time buyers
Geographic concentration
United States, Canada, Australia
Primary channel
Email — Real estate wire fraud
Why this group is vulnerable
Homebuyers are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The FBI reports that real estate-related business email compromise accounted for over 446 million USD in losses in 2023.
Source notes
- FBI IC3 2024
Frequently asked questions
Common questions about down payment redirect scam
How does the down payment redirect scam work?+
Hackers gain access to email communications between the buyer and their real estate or title representative. At the critical moment when the down payment wire is expected, they send an email with fraudulent bank account details. The buyer, under time pressure to close, wires the down payment — often tens or hundreds of thousands of dollars — to the wrong account.
What are the warning signs of down payment redirect scam?+
Wire instructions arrive in a separate email from the rest of the closing communications The account is at a different bank than the title company previously mentioned Email requests immediate action and warns that delays could jeopardize closing
What should I do if I encounter down payment redirect scam?+
Never wire money based solely on email instructions — always confirm by phone using a known, verified number. Ask your title company and real estate agent to establish wire instructions at the start of the process, not at the last minute. If you suspect a fraudulent wire, contact your bank's fraud department and the FBI IC3 within 24 hours.
Who is most at risk for down payment redirect scam?+
This scam primarily targets Homebuyers, First-time buyers. It is most commonly reported in United States, Canada, Australia and typically appears on Email.
Is down payment redirect scam on the rise?+
down payment redirect scam is currently on the rise with growing reports. It has been reported across US, CA, AU. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
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