Escrow & Title

In Colorado, 'wire fraud' in real estate transactions is a growing concern because:

AA. Wiring funds is the most expensive way to transfer money
BB. Scammers intercept email communications between parties and provide fake wiring instructions, redirecting closing funds to fraudulent accounts✓ Correct
CC. Only commercial transactions use wire transfers
DD. Banks can always reverse fraudulent wire transfers

Explanation

Real estate wire fraud is a significant and growing problem nationwide and in Colorado. Cybercriminals compromise email accounts and send fake wiring instructions appearing to come from title companies or real estate agents, diverting closing funds to fraudulent accounts. Colorado brokers should warn clients to always verify wiring instructions by phone (using a known number) before sending funds.

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