You aren't (usually) wiring the money to the property owner. It goes to the title or escrow company processing the transaction. They get the money, execute the paperwork, and then transfer the money to the owner after everything is squared away.
What is the incentive to use an escrow instead of dealing with the owner directly? How do I know the escrow won't run away like a crow with my money and the house?
The escrow company is supposed to be more reputable than the owner. They also handle this type of transaction, and know how to get it done properly, how to check the seller actually owns the house etc.
Not all the money goes to the home owner. Typically some goes to the bank for the mortgage, some to the buyers agent, some to the seller's agent, some to taxes/fees, and so on. The escrow/title company calculates all of this and ensures everyone gets their money.
It's avoided by the companies involved taking 5 minutes to talk to each other when comuniticating instructions, and then holding the funds in escrow for a day before disbursing them.
But they don't care and they are not computer literate.
The scam here relies on someone having compromised the network of the company sending the instructions. In that situation, wouldn't you have to assume the intruder found the secret key?
In the US at least, you typically don’t even meet the owner. (Never mind that it’s not easy to make sure you’re paying the real owner without the aid of the various intermediaries. Nolo Press has good books about buying and selling homes and all the potential pitfalls involved.)
