Top Wire Fraud Stories of 2024: Stories and Lessons Learned

In 2024, cybercriminals have targeted real estate transactions at increasing rates—and it’s no surprise why. High-dollar deals, multiple parties, and lengthy timelines create the perfect storm for fraud. The outcome? Millions lost and a hard truth that no transaction is immune to fraud.

But behind every stolen dollar is a person left to face the fallout. In our To Catch a Fraudster webinar, four individuals courageously shared their personal stories of deception, loss, and the road to recovery after falling victim to real estate wire fraud.

Our guests—Matt Musto, a property buyer in Andover, MA; Sarah Dombrovski, owner of Unique Title and Escrow; Anthony Monelli, Managing Partner of Cretella, Fappiano & Monelli; and Joseph Taborsak, SVP & Senior Claims Counsel at CATIC—each experienced a different form of wire fraud, ranging from payoff fraud to seller impersonation fraud.

From stolen identities to intercepted communications, their stories pulled back the curtain on how wire fraud infiltrated their lives and businesses—and the lessons they discovered along the way. Here’s what we learned from their journeys and how you can protect yourself from becoming the next target.

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The Buyer's Story: Mike Musto

A seasoned real estate buyer, Mike Musto described the shock of losing nearly $600,000 in a fraudulent wire transfer. Despite his years of experience, the well-orchestrated scheme surprised him. 

In Matt’s case, the fraudsters impersonated his attorney, title agent, and realtor, using email addresses that looked almost identical to the legitimate ones. Their attack was subtle but effective: the fraudsters simply spoofed addresses that ended in ‘dot cam’ instead of ‘dot com.’

“I’ve done so many transactions like this,” Mikex shared. “Nothing about this one seemed out of the ordinary.”

A few days after wiring the funds, Mike received a call from his realtor asking why the money hadn’t arrived. It was then that he noticed the slight differences in the email addresses. He immediately feared the worst.

“I'm like, ‘Oh, we're in big trouble.’ And I knew that something was up at that point,” he recalled.

Despite his efforts to contact the banks and visit their offices, he was left in the dark. Initially, the banks didn’t offer much support. The receiving bank communicated only to let him know that the company on the account he wired funds to wasn’t a real company. But recovery? That was still a mystery.

“It was a very scary time, and I thought everything was gone,” Musto said. “I started thinking: ‘Who am I going to point fingers at here?’”

Luckily, after several weeks of back-and-forth between the banks and law enforcement, Mike eventually received confirmation that the funds had been recovered and that he could close the sale. But the experience left him shaken—with some costly lessons learned about verification in buyer-side deals.

How to prevent buyer fund theft:

• Double-check email addresses: Watch for subtle changes, especially in high-stakes transactions. Even slight alterations can signal a fraud attempt.
• Use secure communication channels: Encrypted channels reduce the risk of intercepted or spoofed communications.
• Direct verification: Confirm wiring instructions via a known contact method like CertifID before sending funds. Always call to confirm if something seems suspicious or unexpected.

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A Title Agent’s Nightmare: Sarah’s Story

Sarah, a title agent with over 20 years of experience, shared a series of events that unfolded over a long summer. Her company was attacked in three separate payoff transactions, leaving her drained as she fought to recover the funds and secure her business.

“I remember the exact moment I got the first call from my office saying, ‘We wired a payoff yesterday, and the lender just called us and said they didn’t receive the wire.’ I was sick,” she said.

Fraudsters used email spoofing to pose as legitimate parties in the transaction, sending false payoff instructions to her team. Sarah’s company required confirmation of non-encrypted emails, but due to a handful of miscommunications, the verifications didn’t happen and the funds were stolen.

Almost overnight, Sarah suddenly faced missing funds, insurance claims, legal reports, and accruing interest, while federal investigators worked to secure her operations.

“I wasn’t sleeping. I wasn’t eating. My personal life was wonky at the time… and now, my whole business was on the line. It was chaos everywhere.”

The attacks continue

Call number two came a few weeks later. This time, it was about a payoff that had been wired out on August 1. On August 28, the seller in the deal contacted them to let them know that his mortgage company had never received his payment. In the meantime, they were still trying to pick up the pieces from the first fraud. At that point, Sarah recalled that nothing felt safe.

“We’ve got forensic scans being done on our computers by top forensic teams in the United States. We’re calling and verifying that every wire that left our escrow account arrived at the mortgage company. We’re making sure seller proceeds were received.”

This time, her first call wasn’t even to her bank; it was to CertifID to begin the fraud recovery process.

The investigations revealed an alarming discovery; inside their chain of emails, they discovered that the fraudster had sent emails instructing the team to send funds to a new account that didn’t get caught. It was an act of inserting themselves into the transaction thread at the right time. Her team had done everything right, but the fraudster was still able to deceive at the last minute.

“It can be as simple as that,” Dombrovski said, “It can look like it’s from someone legitimate, or there could have been a breach. The threat actor was just watching communication and able to capture ours.”

A few weeks later, a third call came through about another missing wire. While it was not her fiduciary responsibility, as the money left her partner’s account, she knew what was going to happen, and she wanted to help. So she worked closely with her partner to recover the funds.

“It’s still a responsibility and obligation I have to my clients to be part of the solution,” she said. 

Recovery and redemption

After months of efforts with the help of CertifID, her underwriter, the FBI IC3, and federal law enforcement, a significant portion of Sarah’s funds were eventually recovered. She still faced a shortfall of $168,000, but emerged with strengthened protocols that protect her clients and business to this day.

“It feels so personal," she said. "You may as well have broken into my home and rummaged through everything and stolen everything that I loved.”

Today, her team methodically uses CertifID to protect every wire. And it’s not just the confidence in every wire but also the added benefit of letting her focus on what she does best: helping clients buy and sell their homes.

“The benefit of CertifID is the amount of work that you take off of my plate… and the amount of security that you provide me so I don’t have to worry about [wire fraud]. I can worry about title. CertifID has educated my team and opened my eyes to this whole world I didn’t want to believe existed in St. Cloud, Minnesota.”

How to prevent payoff fraud:

• Create strict verification processes: Any change in wiring instructions should always be confirmed with a trusted contact before funds are processed.
• Find trusted partners: Work with reliable fraud prevention services like CertifID to quickly verify and recover funds.
• Close the gaps: When wire fraud hits, learn from the experience to strengthen your defenses. Sarah now has fortified protocols, understanding that each verification is crucial to preventing fraud.‍

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‍The Seller Impersonation Case: Kenigsberg v. 51 Sky Top Partners, LLC

One of the notorious cases of 2024 was Kenigsberg v. 51 Sky Top Partners, LLC. A fraudster impersonated a seller, deceived the buyer’s attorney, and sold a vacant lot in Fairfield, Connecticut, leading to the construction of a home on the property. Real estate attorney Anthony Monelli and claims counsel Joesph Taborsak represented opposite sides of this eye-opening case.

The fraudster makes contact

The story started much like any other: a referral. Anthony explained how a reputable agent representing the buyer initially contacted him about the deal. At a glance, all the details about the deal and seller looked legitimate. Anthony had worked with the buyer's agent before, and the seller had documents to prove their legitimacy, so Anthony agreed to move forward with the deal.

Behind the scenes, however, was an elaborate scheme. While the buyer and buyer's agent were real, the fraudster posing as the seller was not—and they had done their homework. When asked about identification, the fraudster provided Anthony with a passport, embassy stamps, and several sets of documents to prove they owned the property. They even gave Anthony power of attorney so that he could sign the seller's documents on their behalf on closing day.

The deal moves forward

Nothing looked amiss—even to the trained eye. And over the following weeks, Anthony spoke with the seller often to prepare for closing. The seller always responded quickly—even hopping on a call with Anthony to confirm details.

“We talked a number of times. It was a typical interaction,” he shared, "I had a very long phone conversation with this fellow who told me he was Daniel Kenigsberg."

With the "i's dotted and t's crossed," the deal closed without a hiccup.

A complex title insurance case

However, months later, Anthony got a call from a third local attorney. This attorney told Anthony that it was discovered that the seller he represented was in fact a fraudster. Anthony was floored. But by the time the discovery was made, the buyer had constructed 80% of a new home on the lot, unaware that the property didn’t legally belong to them.

This began a series of intricate insurance and legal tasks to unravel the fraud.

Joe reflected on the situation’s complexity. He had handled the buyer’s title insurance claim. “In this case, that could have been probably the [title insurance] policy’s limit, as you can imagine. If they choose to do that, the companies obviously have subrogation rights to pursue anyone who is at fault.”

He explained that insurance companies can postpone paying claims while they work to validate or protect the insured title. They must take reasonable steps to minimize potential losses, such as providing legal representation, defending the title, or negotiating settlements. Ultimately, this was how they solved the issue.

“How could we help this person who had losses significantly even beyond the title insurance policy coverage? That was the direction that we felt made the most sense.”

The case ultimately settled out of court but set unprecedented levels of social engineering and fraud sophistication in real estate. For more on the case's outcomes, read this CT Insider article.

How to prevent seller impersonation fraud:

• Conduct thorough seller identity verification: Always verify identity through verifiable means, personal meetings, or CertifID Match for vacant or non-owner-occupied properties.
• Leverage insurance: Title insurance and other forms of wire fraud insurance allows the buyer to recover losses and avoid further litigation.
• Be aware of advanced tactics: Today’s fraudsters use complex methods, from spoofed email domains to fake documents, making identity verification crucial.
• Take your time: Don’t let anyone rush you through a transaction. Verify details with trusted contacts and confirm sensitive information with a call.

Practical advice to prevent wire fraud

Fraud can slip through the cracks, even for seasoned professionals. Remember: real estate wire fraud is a complex and sophisticated scheme, impacting thousands of businesses and individual each year. As you consider your own wire fraud protections and experience, consider these tips:

1. Recognize red flags: Be alert to signs like unexpected changes in wiring instructions, last-minute rushes, or contact from unusual domains or emails.
2. Employ advanced security measures: Services like CertifID allow you to verify wiring instructions and secure funds, reducing wire fraud risk. Whenever possible, implement two-factor authentication.
3. Adopt industry best practices: Collaborate with trusted partners, conduct regular security audits, and educate all parties involved in transactions on the latest fraud prevention strategies, as the speakers emphasized.

We all have a collective responsibility to combat wire fraud. As Joe noted, “We’re all in this together.” Prevention is not just an individual practice, but a community effort requiring consistent education, industry-wide cooperation, and reliable security measures. 

By staying vigilant, using reliable fraud prevention services, and sharing knowledge, we can protect ourselves, our clients, and the real estate industry from the devastating impacts. Request a free demo to learn more about how CertifID can keep you safe from these types of frauds.