Scammers Steal $2.2M in Dewey Beach Real Estate Fraud

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Scammers stole $2.2 million from a real estate closing in Dewey Beach, Delaware last year by sending a fraudulent email with fake wiring instructions to the buyer's brokerage. The money was immediately withdrawn or redirected after being transferred to the scammers' account at Truist Bank. The victim, Johanna Berkowitz, has filed a lawsuit seeking to identify the perpetrators and recover the stolen funds.

Why it matters

This case highlights the growing threat of wire fraud and email scams targeting real estate transactions, which have become a lucrative target for cybercriminals. It underscores the need for increased vigilance and security measures to protect consumers and businesses from these types of sophisticated financial crimes.

The details

According to the lawsuit, in November 2025, Berkowitz was preparing to finalize the $2.2 million purchase of a property in Dewey Beach. She received an email purporting to be from the real estate coordinator at the law firm representing her, which contained fraudulent wiring instructions. Berkowitz's brokerage, Charles Schwab, then transferred the closing funds to the scammers' account at Truist Bank, where the money was quickly withdrawn or redirected. The lawsuit claims the scammers either gained access to the computers of Berkowitz, her real estate agents, or her attorneys involved in the transaction.

• In November 2025, Berkowitz was preparing to finalize the $2.2 million real estate purchase in Dewey Beach.
• Two days before closing, Berkowitz received the fraudulent email with fake wiring instructions.
• The $2.2 million was then transferred to the scammers' account and immediately withdrawn or redirected.

What’s next

The lawsuit filed by Berkowitz seeks to subpoena IP addresses, banking records, and other information to identify the scammers and try to recover the stolen $2.2 million.