Reducing Cybersecurity Risks in Real Estate Transactions
Real estate transactions are increasingly targeted by cybercriminals due to the large sums of money involved, strict closing timelines, and the multiple parties exchanging sensitive information—often electronically and under time pressure. While buyers, realtors, and title companies each face their own unique cybersecurity risks, one of the most effective ways to reduce those risks is through early and ongoing communication among all parties involved.
Each Party Has Its Own Role – And Its Own Risks
Buyers are particularly vulnerable to receiving fraudulent emails that appear to be legitimate updates from their attorney, realtor or title company. These emails may include fake wiring instructions that divert funds to a criminal’s account often just days or even hours before closing. Realtors face reputational and legal risks when their names, email addresses, or signatures are spoofed in those fraudulent communications. And title companies are frequently impersonated by attackers because they are often the last to be brought into the transaction and the source of payment instructions.
Reducing Risks Through Coordinated Efforts
Cybersecurity in real estate is not just an IT concern, but also a practical, day-to-day issue that directly affects closings and client trust. The best protection comes from a shared commitment to transparency, education, and planning. Criminals exploit confusion, but a coordinated approach leaves them with fewer opportunities to succeed. To reduce these risks and protect all parties involved:
Include disclosures on websites and in email footers that explicitly state payment instructions will never be sent via email alone, and that wiring instructions should always be verified by phone using an independently provided and verified number.
Provide official wiring instructions in secure formats only—preferably in hard copy or a password-protected PDF—at the beginning of the relationship, not days before closing. Reiterate that the wire instructions will not change during the course of the transaction.
Realtors, title companies, and buyers should share their security practices and clarify what information will and will not be sent, how it will be delivered, and when.
Develop a consistent plan and timeline for when and how payment instructions, closing documents, and identity verifications will occur—and stick to that plan.
Consider using a secure wire transfer platform that supports the verified transfer of wiring instructions along with insurance related to the transfer of funds.
For More Information
If you are involved in a transaction, or about to be – whether as a buyer, seller, realtor, or title company – now is the time to make sure your process (and those of your counterparties) includes a cybersecurity plan. If you have questions about implementing these strategies or need tailored guidance for your organization, please contact Jacqueline Goralczyk (jacqueline.goralczyk@pierferd.com), Tom Vincent (tom.vincent@pierferd.com), or your regular Pierson Ferdinand contact.
This publication and/or any linked publications herein do not constitute legal, accounting, or other professional advice or opinions on specific facts or matters and, accordingly, the author(s) and PierFerd assume no liability whatsoever in connection with its use. Pursuant to applicable rules of professional conduct, this publication may constitute Attorney Advertising. © 2025 Pierson Ferdinand LLP.
