Protect Yourself From Mortgage Closing Fraud
Buying a home should be an exciting milestone, but criminals are targeting homebuyers with a growing scam known as mortgage closing fraud. At Michigan United Credit Union, we want our members to be aware of the risks and take steps to protect their money during the closing process.
What Is Mortgage Closing Fraud?
Mortgage closing fraud happens when scammers trick homebuyers into wiring their closing funds to a fraudulent account. Criminals often hack into email accounts of lenders, real estate agents, or title companies and send fake wire instructions that look legitimate. Once money is sent, it is nearly impossible to recover.
How the Scam Works
A member is close to closing on a new home.
They receive an email or phone call that appears to come from their real estate agent, lender, or title company.
The message provides “updated” or “urgent” wire transfer instructions.
The homebuyer wires funds, often tens of thousands of dollars, to the scammer’s account instead of the legitimate one.
Warning Signs to Watch For
🚩 Last-minute changes to wire instructions or payment methods.
🚩 Messages that stress urgency or secrecy.
🚩 Emails with slight misspellings in addresses or unusual grammar.
🚩 Requests to confirm wire details over email instead of a verified phone call.
How to Protect Yourself
✅ Verify with a phone call. Always call your title company or lender directly using a trusted number, not one provided in the email, before sending money.
✅ Be suspicious of changes. Wire instructions rarely change and if they do, it’s a red flag.
✅ Double-check email addresses. Look closely for extra letters or subtle differences.
✅ Limit what you share by email. Don’t send sensitive information like account numbers over unsecured email.
✅ Set up account alerts. Michigan United CU offers account notifications so you can monitor transactions in real time.
What To Do if You Suspect Fraud
- Contact your title company, lender, or real estate agent immediately.
- Notify Michigan United Credit Union so we can help protect your accounts.
- Report the incident to the FBI’s Internet Crime Complaint Center (IC3) at www.ic3.gov.
Our Commitment to Members
At Michigan United Credit Union, we take fraud prevention seriously. We work with members during the homebuying process to provide guidance and protect against scams like mortgage closing fraud.
When it comes to wiring money for your home purchase, trust but verify. A quick phone call to confirm instructions could save you from losing your life savings.
