North Columbus News

Wire fraud is becoming an increasingly significant issue in the real estate industry, affecting buyers, sellers, and professionals alike. According to Tom Cronkright II, a real estate broker and co-founder of CertifID, "The threat is large and growing."

CertifID's 2025 State of Wire Fraud Report highlights that one in four consumers report receiving suspicious messages during real estate transactions, with one in 20 falling victim to scams. First-time home buyers are particularly vulnerable, being three times more likely to be targeted due to their lack of experience.

Consumers are relying on their real estate agents for guidance on this matter. Thirty-five percent believe it is the agent's responsibility to educate them about wire fraud risks. Additionally, eighty percent would pay more for an agent who prioritizes security.

Despite the rising threat, awareness remains low among home buyers. CertifID's report shows that half of all buyers begin their search unaware of wire fraud risks. This is an improvement from 20% five years ago, but Cronkright believes there is still much work to be done. He states, "This isn’t just a tech problem—it’s a communication problem."

Real estate professionals have a crucial role in combating wire fraud. Cronkright suggests several steps they can take:

1. Include wire fraud warnings in buyer and seller packets.

2. Explain each step of the money transfer process during presentations.

3. Train clients to verify wire instructions using known phone numbers.

4. Collaborate with title companies and attorneys with strong cybersecurity practices.

Cronkright emphasizes that preventing wire fraud should not solely be the client's responsibility: “The consumer shouldn’t have to piece together a fragmented fraud prevention strategy,” he says.

Melissa Dittmann Tracey reports extensively on real estate news and trends.