Wire Fraud in Cabo Real Estate

In today’s digital age, wire fraud can happen anywhere. I’ve seen situations where people fell victim simply because they thought, “Well, this is a foreign country, I’ll just follow instructions and hope for the best.” That mindset is dangerous. At the end of the day, whether you’re buying in Cabo or in the U.S., the rules of protecting your money are the same: you have to double-check everything.

Why Real Estate Transactions Are Vulnerable - Real estate is a high-value target. Transactions involve large sums of money, strict timelines, and multiple parties—agents, attorneys, developers, escrow officers, and notaries. When buyers feel pressured to move quickly or trust instructions without verifying, they expose themselves to risk.

In Cabo, this can be even more pronounced. Hot markets mean units often sell quickly. Developers sometimes overpromise on delivery dates, and buyers feel pressured to “secure a price” before costs rise. When emotions and urgency drive decisions, due diligence takes a back seat—and that’s when mistakes happen.

Common Red Flags in Wire Transfers - There are patterns I’ve seen again and again in Cabo real estate that should make buyers pause:

Pressure for direct payments – If a seller insists that funds be sent directly to them, bypassing escrow, it’s a red flag. Escrow exists to protect both parties.

Requests for unusually high deposits – For pre-construction, it’s normal to see 10–20% down. Anything significantly higher should trigger questions.

Payments disconnected from progress – Developers may ask for large sums upfront without tying payments to construction milestones. If progress stops, the buyer has little leverage.

Account discrepancies – The most common scam: wiring instructions that suddenly change, or requests for funds to go to an individual or unrelated entity.

Emails from outside addresses – Fraudsters spoof legitimate accounts with minor differences (like one extra letter in the domain).

These aren’t hypothetical. I’ve spoken to people in Cabo who wired hundreds of thousands of dollars to accounts they assumed were legitimate, only to later realize the instructions were fraudulent.

Best Practices to Protect Yourself - The good news: preventing wire fraud isn’t complicated. It comes down to slowing down, verifying, and refusing to cut corners.

Always use escrow (except in very limited cases). Escrow provides a neutral, legally accountable third party to hold funds. Skipping escrow to save a few hundred dollars has cost some buyers hundreds of thousands.

Tie payments to milestones. For pre-construction, structure progress payments based on completion stages. Don’t hand over 100% of funds without proof of work or clear timelines.

Verify wiring instructions by phone. If you get an email about wiring funds, call the escrow officer or attorney directly. Use a verified phone number, not one provided in the suspicious email.

Confirm the recipient account. Funds should always go to the entity that holds title—not to individuals, not to “friends of the developer,” and not to unrelated third parties.

Beware of urgency. If a seller says, “Pay now or lose the deal,” slow down. Scarcity pressure is a classic tactic used to bypass safeguards.

Have your own representation. Don’t rely solely on the seller’s or developer’s notary, attorney, or escrow recommendation. Hire professionals who are accountable to you.

I know of one buyer who received a third payment request via email. The first two payments went through escrow without issue. The third email looked legitimate—the numbers matched, but the account details had changed. Without verifying, the buyer wired the money. It was only later, after the funds had vanished into a fraudulent account, that the problem became clear.

Had the buyer picked up the phone and confirmed with escrow, this loss would have been avoided.

Buying real estate in Mexico—or anywhere—should be exciting, not stressful. But wire fraud is real, and it thrives on two things: urgency and complacency.

My advice is simple: Use escrow. Verify every wire transfer. Don’t be afraid to slow down and ask questions. Surround yourself with trusted professionals who will protect your interests.

The costs of taking shortcuts far outweigh the perceived savings. In Cabo, as in the U.S., the best deals aren’t just about price—they’re about safe, secure, and properly executed transactions.

For help with real estate in Cabo, contact Fletcher Wheaton - fletcher@remexico.com