Protecting Closing Funds: A Payment-Instruction Fraud Checklist for Ottawa Real Estate

Published October 10, 2026 · Meysami Law Professional Corp. · Ottawa

A real estate closing can involve a large transfer under time pressure. Criminals may impersonate a lawyer, brokerage, lender, client or other trusted contact and send altered payment instructions. A careful verification routine cannot remove every risk, but it can help Ottawa buyers and sellers recognize a suspicious change, pause before transferring funds and respond quickly if something goes wrong.

Treat an unexpected change as a stop signal

Be cautious if an email or message changes the recipient, account, amount, deadline or payment method, especially when it creates urgency or discourages a phone call. Do not rely on a familiar display name, copied signature block or an email thread as proof that the instruction is genuine. Stop and verify before sending money.

Verify through a trusted, separate channel

Contact the firm, bank or other intended recipient using a phone number you independently obtained from an established record, signed retainer, official website or earlier verified communication. Do not call a number supplied only in the message you are checking. The RCMP recommends confirming payment requests through another communication method, such as a phone call, and using two-step verification for payment requests.

Confirm the complete instruction, not just the last digits

Ask the authorized contact to confirm the recipient name, financial institution, account or reference information, exact amount, deadline and permitted transfer method. Follow the law firm's and financial institution's own procedures. A previous transfer to the same person does not validate a later request if any instruction has changed.

Keep closing information on a need-to-know basis

Limit who receives the closing date, transaction documents and payment details. Use strong unique passwords and multi-factor authentication where available, and promptly report an email-account compromise to the affected service provider. Avoid moving sensitive payment conversations to a new number or account unless the change has been independently verified.

If money may have been misdirected, act immediately

Contact the sending financial institution and the intended recipient at verified numbers immediately and ask what recall or fraud-response steps are available. Report the incident to local police and the Canadian Anti-Fraud Centre. Preserve the message, headers, transfer receipt, phone numbers and timeline, but do not delay urgent contact while organizing records. Recovery is not guaranteed, and the appropriate response depends on the facts.

Build verification into the closing plan

Before closing, ask how the firm will communicate payment instructions, which methods it accepts, whom to call to verify them and what identification or bank limits may affect timing. Buyers and sellers should not assume that email alone is a secure instruction channel. A simple written checklist and a known contact number can reduce rushed decisions on closing day.

This article is general information as of October 10, 2026, not legal, tax or financial advice. Rules and circumstances can change. Contacting the firm does not create a lawyer-client relationship.