How to Verify Wire Instructions and Eliminate the Risk of Fraud

Wire fraud is a growing threat, with the FBI reporting over 521,652 instances of cybercrime in 2023. As ALTA CEO Diane Tomb warns, "Fraud attempts are increasing compared to a year ago, meaning title and settlement companies must be even more vigilant."

For title companies and attorneys in the United States, handling large transfers, the stakes are particularly high. Once fraudsters successfully intercept funds through phishing or impersonation, the transfers are often irreversible.

But there's good news: these attacks are preventable with the right procedures. 

In this article, you'll learn the exact steps to verify wire instructions and protect your business. By following these protocols, you'll safeguard your clients' funds while protecting your company's success.

How to safely verify wire instructions in 6 steps

You should verify wiring instructions through secure, automated systems rather than relying on phone calls or emails. Traditional methods are vulnerable to fraud, with cybercriminals now able to intercept both voice and written communications.

Here are six essential steps to protect your wire transfers:

1. Document your wire transfer workflow

Clear documentation of your wire verification process is important. This is true whether you run a small business or a large agency. 

As transaction volumes grow and fraud attempts become more sophisticated, having a documented workflow helps your team verify wire instructions.

Here's what a secure verification workflow could look like:

• Title Production Software (TPS). Your workflow starts in your title software where you manage transactions and store initial wire instructions

• Verification platform. Wire instructions should get verified through a fraud prevention tool

• Banking platform. Once verification is complete, you can execute the wire transfer

In this workflow diagram, you can see what steps you should follow before processing wiring instructions and transferring money.

When you receive wire instructions, they flow through your verification platform, where you either confirm them as safe or flag them for review. 

Any discrepancies prompt an immediate request for updated information before sending funds. The key is consistency: ensure every team member follows these documented steps.

This protects your agency from fraud while creating an audit trail for every transaction.

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2. Use secure software for all wire instructions

In 2022, fraud victims lost $446m to Business Email Compromise (BEC) scams. These scams specifically target professionals like you who handle large real estate transfers.

Given these risks, never accept wire instructions through email alone. Secure verification platforms like CertifID help validate banking details before transfers occur.

Once you receive wire instructions from your customer, run them through the verification system. 

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Here’s how it works: 

Within a minute, the software validates both the recipient's identity and their banking information, giving you complete confidence in the transaction's security.

After the recipient verifies their banking information, you'll receive confirmation and can proceed with the transfer—backed by up to $2 million in insurance protection.

3. Cross-reference source details

Cross-referencing is a key step in wire fraud prevention. It ensures bank instructions match verified records at every level. 

Fraudsters often exploit weak verification methods, such as spoofed email addresses or fake phone numbers to manipulate wire transfers.

You can minimize these risks through cross-referencing processes.

• System-based validation: Automated tools within your title software provide real-time alerts when details don’t align. Mismatched account numbers or unauthorized changes to recipient information could occur. These alerts enable immediate action, reducing the risk of unauthorized transfers.
• Verify wiring instructions from the central operations hub: As CertifID integrates with title production solutions, you don’t have to leave your day-to-day tool to compare received banking details against secure records. This means validating routing numbers, account numbers, and recipient names. You can also flag any discrepancies automatically before you initiate the transfer
• Multi-point verification: You can match sender email addresses with trusted contact records, verify phone numbers against official sources, and cross-check wire instructions with closing documentation to catch inconsistencies that might indicate fraud.

Cross-referencing ensures no single point of failure compromises the transaction. Combine automated validation with manual oversight and you’ll create a layered defense against fraudsters.

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4. Perform multi-factor verification

Multi-factor verification helps prevent wire transfer fraud by confirming a person's identity through multiple methods. 

When verifying wire instructions, using multiple verification factors ensures you're receiving instructions from the legitimate party.

Imagine you just received wiring instructions for the proceeds of a $450,000 home sale. The seller's instructions detail where they want to receive their funds after closing. 

Before storing these instructions for the upcoming closing, you want to make sure the seller isn’t a fraudster. To verify this person’s identity, you can use CertifID Match and they’ll have to complete the following steps:

Specifically, they’ll have to:

• Scan their government-issued ID to confirm their identity
• Verify their phone number through a secure text code
• Take a selfie
• Answer unique security questions
• Complete device verification to flag any suspicious logins or locations

For them? The entire process takes the seller less than a minute. 

For you? It gives peace of mind knowing that you’ll be sending the proceeds to the legitimate seller—not an impersonator.

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5. Verify the authenticity of account details

As a title agent, you face a growing threat: mortgage payoff fraud targeting agencies of all sizes. The FBI reports over $2.7 billion in business email compromise losses in 2022, with mortgage payoffs being prime targets.

Traditional verification methods have limitations. 

Callback verifications don't protect you if fraudsters intercept communications or impersonate lender representatives—you're still liable for misdirected funds.

Spreadsheets of wiring instructions quickly become outdated as lenders update their payment details.

Melissa Deml, Chief Operating Officer at TitleSmart, shares her experience: "PayoffProtect tool gives our staff something concrete they can do [to verify wire instructions]. Now they have something that's like, 'Okay, this I know that every time I'm doing this, I can exhale a little bit,"

If you’re wondering how exactly PayoffProtect works, here’s the deal:

When entering lender information, selecting names from CertifID’s pre-populated database provides access to verified routing details.

Once the validation process is complete, users receive one of three status updates:

• “CertifID”: Funds are safe to disburse
• “Unable to validate”: The account can't be verified but isn't necessarily fraudulent
• “High risk”: Known fraudulent details or suspicious activity reported by lenders

These statuses help you decide to halt transactions before any funds are lost.

6. Handle changed details with extreme caution

It’s rare, but changes to details can and do happen. The most difficult thing with changing details is to validate those new details and ensure they are not from fraudulent actors. 

When updated wire instructions come in:

• Check sender email domains for slight misspellings
• Look for grammar or spelling errors that seem off
• Be skeptical of urgent messages pushing for immediate action
• Run any changes through your verification platform again from the start

Now let's look at best practices for preventing wire fraud at your title company.

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Best practices for preventing wire transfer fraud

Avoiding fraud is easy when you know what to look out for. 

1. Stick to compliance requirements

ALTA's Best Practices Framework (Version 3.0) outlines key requirements for title companies to protect against wire fraud. 

Here are the key requirements directly from ALTA's Pillar 2 - "Adopt and maintain appropriate written procedures and controls for Escrow Trust Accounts":

Written procedures: According to ALTA's Best Practice 2.01, maintain documented procedures for escrow trust accounts, including:

• Wire and funds transfer controls
• Positive pay or ACH blocks
• Segregation of duties
• Daily reconciliation procedures

Escrow account protection: Under Best Practice 2.02, title companies must:

• Maintain separate escrow/trust accounts
• Perform three-way reconciliation (bank statement, book balance, trial balance)
• Document and resolve outstanding file balances

Wire transfer security: Best Practice 2.04 requires:

• Secure authorization and authentication procedures
• Training on wire fraud prevention
• Documentation of all verification steps
• Regular review of domestic wire transfer procedures

For the most current compliance requirements, always check ALTA’s best practice website. They update requirements periodically to address emerging fraud threats.

2. Educate and train your team 

Title companies face unique fraud risks. With large wire transfers happening daily, a single mistake can be catastrophic, yet 72% of title companies don't conduct phishing tests on their employees.

Use real-world examples in training. Show your team actual fraud attempts targeting title companies—how fraudsters impersonated lenders, intercepted communications, and redirected mortgage payoffs. 

Walk through each case: what warning signs were missed, and what verification steps could have prevented the loss?

Run regular simulations. Test how your staff handles wire instruction changes, urgent payoff requests, or suspicious lender communications. These exercises build muscle memory for following verification procedures under pressure.

Remember: Every team member who touches a wire transfer must understand that verification means protection for your company and your clients.

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3. Stay updated on fraud tactics

New fraud methods pop up all the time thanks to new technological advances and sophisticated software. 

The technology and stories around cybercrime and wire fraud can be quite fascinating. 

One of the latest tactics is “vishing,” which sees fraudsters faking a caller ID, playing office sounds in the background, and posing as someone from a company. 

Learn more about it in this short video:

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If you’d like to stay up to date with cybersecurity updates and fraud prevention news, sign up for our newsletter.

4. Avoid email reliance and callbacks

Wire fraud schemes target two key points in your transaction process: 

• Wire instruction collection
• Mortgage payoff verification

Let's look at why traditional methods put your business at risk.

Email is often the default way to receive wire instructions, despite being highly vulnerable to fraud. Criminals have become experts at intercepting these emails and altering payment details for seller proceeds.

For mortgage payoffs, many title agencies still rely on callbacks. While this might seem secure, it creates the following risks:

• Fraudsters who've compromised communications can intercept these verification calls
• Lender representatives might accidentally confirm incorrect financial information
• Your company remains liable for any misdirected funds

The solution? Secure, multi-layered verification platforms protect both types of transactions. This gives you confidence that funds reach their intended destinations—whether you're sending seller proceeds or mortgage payoffs.

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5. Get solid wire fraud insurance 

As a title professional, you need a safety net even with robust security measures. Wire fraud insurance provides extra protection when scams slip through your defenses.

Traditional cyber insurance policies don't always cover wire fraud losses. Look for coverage designed for real estate companies, including protection against fraudulent wire transfers and social engineering scams. 

The best insurance providers understand the unique risks of real estate transactions and offer quick response times—because with wire fraud, timing is critical.

Consider how your insurance and verification tools work together. The combination of prevention and protection will help you ultimately keep your customers and business safe.

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Let CertifID verify your wiring instructions

Now you know exactly how to verify wiring instructions. Don't let wire fraud put your company at risk. With the right tools and procedures, you can protect your transactions and maintain your reputation.

Today's wire fraud prevention platforms make it easier than ever to secure wire transfers while keeping your operations efficient.

Ready to see how automated verification can protect your business? 

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