Why do lawyers insist on verifying wire instructions by phone before sending large closing funds?

Phone verification exists because email is the weak point fraudsters exploit most successfully in real estate transactions. A compromised or spoofed email account can send instructions that look entirely legitimate, reference real transaction details, and arrive at exactly the moment a large transfer is expected, so relying on the email alone to confirm where money should go leaves an opening that has cost real buyers and sellers significant sums.

Calling using a phone number obtained independently of the email itself, such as one already on file from earlier in the transaction or found through the firm's own website, closes that opening because it does not depend on anything the fraudster could have altered. If the number in the suspicious email is used to "verify," the call may simply go straight to the fraudster. Because the sums involved in a real estate closing are typically large and the funds are difficult to recover once sent, this extra step, though it takes a few extra minutes, is treated as a non-negotiable part of how Ontario lawyers protect client funds.