Real estate fraud is not just a theoretical risk… it is a growing and very real threat, and the latest FBI data shows it is costing Americans hundreds of millions of dollars each year. According to the FBI’s Internet Crime Complaint Center (IC3) 2025 report, there were 12,368 real estate fraud complaints nationwide, resulting in more than $275 million in reported losses. That is a significant number, and while St. Louis is not singled out specifically, our local market is certainly not immune to these same risks.
One of the most concerning aspects of real estate fraud today involves wire transfers. In many cases, criminals intercept or spoof email communications between buyers, sellers, agents, attorneys, or title companies, then provide fraudulent wiring instructions. The FBI report shows that business email compromise, often tied directly to real estate transactions, accounted for over $3 billion in losses in 2025 alone. In fact, the report includes real-world examples of victims wiring large sums intended for real estate closings into fraudulent accounts instead.
Another key takeaway from the report is just how widespread cyber-enabled fraud has become. The FBI notes that cyber-enabled fraud accounted for approximately 85% of all reported losses, totaling nearly $17.7 billion. As real estate transactions increasingly rely on digital communication, electronic signatures, and remote coordination, this creates more opportunities for bad actors to exploit weak points in the process.
Here in St. Louis, one factor that can add complexity… and potential risk… is the common use of split closings. With multiple parties involved, including two title companies in many cases, there are more communication channels and more opportunities for miscommunication or interception. While split closings are standard practice locally, they do require extra diligence from buyers and sellers to ensure all information is verified and accurate.
A good example of how a local company addresses this risk is M&I Title Company, a St. Louis-owned and St. Louis-based title company. M&I uses a third-party platform, Certifid, to securely exchange account information and wiring instructions. When used, it helps protect the parties against wire fraud by providing a more secure way to share sensitive financial information. Full disclosure… I have an ownership interest in M&I Title Company.
So what should consumers watch for? Based on both FBI data and real-world cases, here are some of the most common warning signs:
- Last-minute changes to wiring instructions
- Emails that look legitimate but contain subtle differences
- Requests to move communication outside normal channels
- Pressure to act quickly without confirming details
The best protection is simple but critical… always verify wiring instructions by calling a known, trusted phone number for your title company, attorney, or agent before sending any funds. Never rely solely on email instructions.
You can review the full report here: View the Full FBI Internet Crime Report and we will also have the report available below for your reference.
Perhaps the most important takeaway for anyone buying, selling, renting, or investing in real estate is this… who you work with matters. In today’s environment, it is more important than ever to work with professionals you know, trust, and can verify. That means local agents, local lenders, local attorneys, and reputable title companies with a real presence in the community.
Unfortunately, there has been a noticeable rise in scams involving fake listings, out-of-area “agents,” and people operating from call centers or online identities that are hard to verify. Consumers are sometimes asked to send deposits, application fees, earnest money, or even purchase funds to people they have never met and cannot confirm are legitimate. Once the money is sent, it is often gone for good.
Working with a trusted local brokerage like MORE, REALTORS® means working with professionals who are accountable, accessible, and experienced in the local market. That local presence can make all the difference when it comes to protecting your transaction and helping ensure everything goes smoothly from contract to closing.
In today’s digital world, convenience is important… but security is essential. Taking a few extra steps to verify information and choosing the right professionals can help make sure your real estate transaction does not become part of next year’s fraud statistics.
FBI Internet Crime Report 2025 -PDF
