Protecting Yourself from Escrow Scams in Florida: What Homebuyers and Title Agents Need to Know

Understanding Escrow Scams

Imagine this scenario: you’re on the verge of completing the arduous homebuying process, eagerly anticipating receiving your keys. Suddenly, a cyber thief intercepts your escrow payment, and the money you’ve worked so hard to save vanishes. Unfortunately, this scenario is becoming increasingly common, and victims often find their stolen funds irretrievable.  There are more and more escrow scams happening in Florida.

In 2021, the FBI estimated that potential losses from cybercrime exceeded $6.9 billion, with escrow money being a prime target due to the substantial sums involved. Escrow fraud is a significant and growing problem, with consumers frequently bearing the brunt of the losses.

How Escrow Fraud Works

Escrow fraud typically exploits the busy and often stressful nature of real estate transactions. Cybercriminals hack into title companies’ systems, extracting emails and details about upcoming home purchases. They then set up fake websites and email addresses that closely mimic legitimate ones. For example, if your title company is “Smith and Associates,” the fraudsters might create “Smith and Associate” to deceive you.

These fraudsters send emails with instructions to wire money needed to close the house. In some cases, they target title companies directly, posing as the seller to divert funds. Once the money is wired to the fraudster’s account, it is usually withdrawn immediately, making recovery nearly impossible.

How to Protect Yourself from Escrow Fraud

  1. Verify Email Addresses: Always check the email address from which you’re receiving instructions. Ensure it matches perfectly with your title company’s official email address. Even a single letter difference can indicate a scam.
  2. Avoid Using Contact Information in Emails: If you receive an email regarding wiring money, do not use the contact information provided in the email to verify the instructions. Instead, use previously verified contact details to confirm any instructions.
  3. Know Your Title Company’s Security Measures: Smaller title companies might lack sophisticated security measures, making them easy targets. Ensure your title company has strong identity verification processes, such as requiring a notarized statement and conducting video conferences for fund transfers.
  4. Request Proof of Cyber Insurance: Ask your title company to provide written confirmation of their cyber insurance policy. This policy should cover potential losses due to cyber theft. Having a copy of their policy binder ensures they are adequately insured.
  5. Slow Down and Be Vigilant: Scammers rely on the haste and stress of real estate transactions to exploit victims. Taking a moment to double-check details can prevent costly mistakes.

For Title and Escrow Agents

Title and escrow agents are not immune to these scams. Here are additional precautions they should take:

  1. Strengthen Cybersecurity: Invest in robust cybersecurity measures to protect client information and communications.
  2. Educate Clients: Inform clients about the risks of escrow fraud and provide them with guidelines on verifying communications.
  3. Implement Multi-Factor Authentication: Use multi-factor authentication for accessing sensitive information and systems.
  4. Regularly Update Security Protocols: Stay updated with the latest security protocols and ensure all employees are trained in cybersecurity best practices.


Escrow fraud is a growing threat in the real estate industry, targeting both homebuyers and title companies. By staying vigilant, verifying information, and taking proactive security measures, you can protect yourself and your assets from cyber thieves. Remember, slowing down and double-checking details can make all the difference in preventing you from becoming the victim of escrow scams in Florida.


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