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Wire Fraud Exposure Calculator

Real estate wire fraud targets closing transfers — quantify your exposure and insurance gap.

$
%
$

Expected annual loss

$28,875

Uninsured gap per incident

$0

Expected annual incidents

0.15

How the math works

Incidents = closings × rate. Net loss = wire × (1 − recovery). Expected loss = incidents × net.

500 × 0.0003 = 0.15 incidents. $350k × 55% = $192.5k net loss × 0.15 = $28,875 expected annual loss.

How to Use

  1. Enter annual closing volume.
  2. Enter average wire size.
  3. Enter industry fraud incidence per 1,000 wires.
  4. Enter recovery rate %.
  5. Enter cyber-policy limit.
  6. Read expected loss and uninsured gap.

Frequently Asked Questions

How common is real estate wire fraud?

FBI IC3 reported $446M in real estate / rental BEC losses in 2022 alone, up from $221M in 2020. Incidence: roughly 1 in 300-500 closings sees an attempted intercept, and 1 in 3,000-5,000 results in actual loss. Title companies, escrow agents, and buyers are all targets; the fraudster typically spoofs email from the agent or attorney days before closing with new wire instructions.

Recovery odds?

IC3 Recovery Asset Team claws back roughly 70-75% of funds reported within 72 hours. After 72 hours, recovery drops below 20%. Full restitution is rare — roughly 30% of reported cases see partial recovery of 40-90%. Average recovery across all reported cases: 40-55%. Speed matters most: file IC3 and call receiving bank immediately.

Who pays if funds are lost?

Legal responsibility turns on negligence. Buyer who sent to fraud instructions without verifying by phone: typically eats the loss. Title company that had compromised email: can be liable if security was weak. Lender: almost never liable. Agents and attorneys carry E&O but most policies exclude social engineering absent a crime / cyber rider. Cyber insurance with social engineering coverage is the cleanest protection.

Prevention playbook?

Verify wire instructions by phone using a number from a separate channel (not the email signature). Never wire to instructions changed at the last minute. Use secure closing portals (Qualia, Earnnest, CertifID) that authenticate wire instructions end-to-end. Educate every party — most losses involve first-time buyers unaware of the threat. Title companies should carry $1-5M social engineering coverage.

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