By Jennifer Berger
2026 President
Santa Barbara Association of Realtors
Buying or selling a home comes with a lot of moving parts: contracts, inspections, loan documents, disclosures, escrow deadlines, and large sums of money changing hands. That is exactly why real estate transactions are attractive targets for cybercriminals.
The FBI’s Internet Crime Complaint Center (IC3) reported more than 1 million cybercrime complaints in 2025, with losses topping $20.8 billion. Real estate fraud alone accounted for 12,368 complaints and more than $275 million in reported losses. California led the nation in total cybercrime complaints and reported losses.
The most common real estate scam to watch is wire fraud. A buyer may receive what looks like a legitimate email from a title company, escrow officer, attorney, lender, or REALTOR® with wiring instructions for closing funds. The email may have the right names, logos, and transaction details. But if a criminal has changed the instructions, the money can be gone in minutes.
The IC3 report includes real examples of homebuyers who were nearly or actually defrauded during closing. In one case, a senior citizen received compromised instructions and wired more than $1.3 million to a fraudulent account. In another, buyers sent more than $449,000 after receiving an email impersonating their attorneys. Quick reporting helped freeze funds in some cases, but no one should count on luck as a recovery plan.
Consumers should also watch for rental scams. Be careful with listings that seem too good to be true, pressure you to send money quickly, or involve an owner who cannot meet in person. Never send a deposit, wire transfer, cryptocurrency payment, or payment-app transfer before verifying the property and the person offering it.
Impersonation scams are also getting harder to spot. With artificial intelligence, fake emails, deep fake videos and voices, documents, and online profiles can look and sound convincing. The IC3 report noted more than 22,000 complaints involving AI-related information in 2025, with reported losses exceeding $893 million.
A few habits can prevent a very expensive mistake:
– Confirm wiring instructions by phone using a trusted number.
– Question any last-minute change to payment instructions.
– Avoid clicking unexpected links or attachments related to your transaction.
– Use strong passwords and multi-factor authentication.
– Pause and call your REALTOR®, escrow officer, lender, or attorney if anything feels off.
The impact of real estate cybercrime is not just financial. It can derail a purchase, delay a sale, create legal problems, and cause enormous stress. For many families, closing funds represent years of savings. For older adults, the damage can be especially severe. In 2025, people 60 and older reported more than $7.7 billion in cybercrime losses, including more than $123 million in real estate-related losses.
If you believe you have been targeted, act immediately. Contact your bank and ask for a recall of the funds. Notify your REALTOR®, escrow or title company, and local law enforcement. Then file a complaint at IC3.gov with as much transaction detail as possible. Time matters.
Real estate is built on trust, but trust should never replace verification. As REALTORS®, we help people navigate some of the most important financial decisions of their lives. Part of that responsibility is helping the public slow down, ask questions, and protect themselves.
When in doubt, stop, call, and verify. That one pause may protect everything you have worked so hard to save.
Jennifer Berger is a top producing, third generation California REALTOR® with Compass, bringing 28 years of experience in residential real estate, serving Santa Barbara and its surrounding communities. She currently serves as President of the Board of Directors for the Santa Barbara Association of Realtors. She can be reached at 805-451-5484 or jennifer.berger@compass.com.
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