How to Keep Transactions Secure | Proof

Real estate fraud is surging, and digital closings have made the target bigger. Real estate is one of the highest-value sectors for financial crime: every transaction moves large sums of money alongside sensitive personal data, including social security numbers, bank account details, and credit histories. Federal agencies like FinCEN dedicate entire programs to tracking suspicious activity across the mortgage and real estate industry because the threat is that serious.

Today, security means protecting both money and data at every stage. Human error, compromised credentials, and sophisticated fraud schemes — wire fraud, identity theft, social engineering — are active threats that target real estate transactions specifically. Lenders, title companies, and closing teams all operate under the same exposure: every transaction is a target. Security is a platform and process decision built into workflows, not an add-on.

Key takeaways

• ​High-value targets: Real estate transactions are primary fraud targets due to the volume of sensitive personal data and large financial transfers involved in every deal.
• ​Named threats: Deed fraud, wire fraud, and impersonation scams are the most active vectors attacking digital real estate transactions today.
• ​Expanded attack surface: While online closings offer real efficiency gains, every new digital touchpoint is a potential entry point for fraud.
• ​Proactive controls: Security must be built into the workflow through verified identity checks, URL verification, and clear communication protocols.
• ​Client education: Setting security expectations at the start of every transaction is the first line of defense against social engineering.
• ​Ongoing monitoring: Post-closing property fraud alerts through county recorder offices can catch unauthorized deed filings before they escalate.

Why moving real estate online creates new security risks

Every part of a real estate transaction can now happen online: mortgage closings, payments, notarizations, and eSigning. That's a significant operational gain. Lenders can make more revenue through shorter processing times when they offer full online mortgage closings, and buyers get the flexibility they expect. But every digital convenience also introduces a new way in for bad actors.

The attack surface is growing fast. FinCEN tracks suspected mortgage fraud and money laundering across both residential and commercial real estate, and suspicious activity reports continue to rise. The threats are not abstract:

Deed fraud

Scammers forge property ownership documents and record fraudulent transfers, stripping an owner of their home without their knowledge.

Wire fraud

Criminals spoof or intercept closing fund transfer instructions via email, diverting payment to accounts they control.

Impersonation scams

Bad actors pose as agents, lenders, or title company contacts to steal personal data or redirect funds.

Digitizing a workflow doesn't make it secure. Every new touchpoint is a potential entry point for fraud: payment portals, eSign platforms, identity verification steps. Security has to be wired into the process from the start, not bolted on afterward.

How to protect clients from real estate fraud

Every real estate transaction moves two things: money and personal data. Social security numbers, credit histories, account numbers — all of it flows through the closing process, and all of it is a target. Scams can hit at any stage, whether buying, selling, or refinancing, and through any channel: email, text, phone, video, or in person.

Common tactics

• ​Phishing emails impersonating banks, mortgage lenders, or title companies
• ​Wire fraud through lookalike payment portals or spoofed email domains
• ​Social engineering to extract personal information from agents or clients
• ​Forged documents and fraudulent deed filings recorded against properties without owner knowledge

What you can do

• ​Require strong, unique passwords and multi-factor authentication for every platform used in the closing process
• ​Establish clear communication protocols: who will contact the client, through which channels, and what will never be requested via email
• ​Verify all URLs before submitting payments or sensitive data
• ​Confirm authorization before sharing any client personal information with a third party
• ​Address security protocols with clients at the start of every transaction

Here's how lenders, title companies, and closing teams can build security into every step.

1. Use secure passwords

According to Avast, 83% of Americans use weak passwords, making credential-based attacks one of the lowest-effort entry points for fraudsters targeting financial workflows. For every platform involved in the eClosing process, clients should use unique, complex passwords and enable multi-factor authentication wherever it's available. Enterprise platforms should enforce MFA and session controls by default, rather than relying on clients to self-manage credential security during a high-stakes transaction. A password manager makes this practical at scale.

2. Watch for phishing

Phishing in real estate isn't limited to generic spam. Scammers pose as agents, lenders, title companies, and even home inspectors to divert payments, steal personal data, or push fraudulent loan terms. Watch for these red flags:

• ​Urgency and pressure: Messages demanding immediate action ("wire now or lose the deal") are designed to bypass careful review.
• ​Last-minute wire instruction changes: Any change to payment details that arrives via email should be verified by phone using a known, established number before acting.
• ​Unfamiliar sender addresses: A single-character difference in a domain name can redirect funds to a criminal's account.

Tell clients upfront which channels you'll use to communicate — and which you won't. A fraudulent email is most effective when the recipient has no baseline to compare it against.

3. State security measures up front

Online closings are still unfamiliar territory for many clients. Set expectations early: explain the identity verification steps, the platforms involved, and what legitimate communications will look like. That baseline is your first line of defense against social engineering.

Specifically, cover:

• ​Which platforms will be used and how client data is protected
• ​Who will communicate with the client, through what channels, and what they'll never ask for via email or text
• ​How identity will be verified during the closing process
• ​What the client should do if something feels off

When clients know what to expect, they're far more likely to spot something that doesn't belong.

4. Secure the URL

Before asking clients to make any payments online or share any valuable information, verify that the platform or web address is accurate and secure. It will usually either match the URL of the lender or come from an approved financial partner. If the URL is unfamiliar, verify it through an established contact before proceeding.

5. Only share personal data with a verified source

If someone involved in the real estate transaction asks for personal information about your client, such as a social security number or bank account number, confirm that person is authorized to receive that information and that you're authorized to provide it. When in doubt, verify directly through an established contact channel, not through the requestor.

Protection shouldn't end at closing, either. Advise clients to enroll in property fraud alert services through their county recorder's office — many are free and will notify the owner any time a document is recorded against their property. Regular checks of county records can also catch unauthorized deed filings or liens before they escalate.

Digital real estate transactions carry real risk — and real consequences when those risks aren't addressed. The controls exist: identity verification, tamper-evident records, cryptographic audit trails, real-time fraud detection. The question is whether they're embedded in your process or left to chance.

Proof secures every stage of the closing lifecycle, from biometric identity verification at onboarding through online notarization and eSign. Every signature, every authorization, every closing produces a defensible, verifiable record.