@Michael Lim There are several methods hackers can disguise themselves and trick you into making a payment into a wrong account. This is a very complex domain and I am in no position to give legal/professional advice on it, but some of the methods I've come across personally or through awareness e-mails I received from my employer could be:
1. The hacker sends you an identical email address and layout but from a different domain. For example, you could be dealing with ABC Escrow and their legitimate email is closing @ abcescrow . com however the hacker will use a fake domain such as abcescrows . com (notice the additional S) to fool you into thinking its the legitimate one. You have to pay close attention that you are receiving an e-mail from the real company.
2. They could have hacked the escrow companies email without the company knowing and sending out emails from the legitimate domain but with the fake transfer information. This is the most dangerous as there is very little evidence of wrongdoing. Your best bet (in all cases) is to verify the transfer details with the escrow company multiple times before executing the transfer. It is also advised to contact them using a number you obtained at the very beginning when you started dealing with them.
In general, if the company/person you are transferring money to suddenly change their bank account number, email, telephone number it is usually a big red flag that something fishy might be going on. Other things to look for are poorly written emails, weak grammar/language, non professional writing tone, weird sounding domain names, over enthusiastic agents that keep hurrying you into executing the transfer.
As for the escrow company used being totally fake, it is possible. That is why you should do your homework on which companies you choose to represent you. Look for references from people you trust, or find someone in your area (BP could be useful here) that can recommend a good title company. You should also try to insist that your company of choice is the closing company when both buying and selling. If the other party refuses, check which company they are proposing and do a thorough check on them.
Unfortunately the risk of cyber crime is very real and can have dire consequences for the victim. Stay aware of whats going on and question every single detail you come across even if you've done the same thing 100 times!