Tips to Avoid Popular Real Estate Fraud Scams

Real estate scams are on the rise, from wire fraud to fake rentals. Verify wiring instructions, check property records and be cautious with unsolicited emails.

• Wire fraud scams. This is not a new scam, but there are still reports that this is occurring. For this scam, the fraudsters impersonate real estate professionals and trick victims into wiring funds into fraudulent accounts. A simple way for a buyer to avoid becoming a victim of this fraud is to pick up the phone and confirm with the closing agent what the wiring instructions are. For real estate licensees, make sure you are using secure communication methods.

• Deed fraud and title theft. This scam typically involves vacant land owned by an out-of -state/country owner or an estate property. The fraudster steals personal information pretending to be the seller. They then forge a signature to transfer someone else’s real property. Next, when the property is in the fraudster’s name, they will attempt to mortgage or sell the property to an innocent third party. 

• Email phishing scams. Scammers send fraudulent emails impersonating real estate professionals to steal personal information and payments.  Be cautious of unsolicited offers.

• Pig butchering. This commonly starts with a seemingly innocent contact. The scammer then builds a rapport with the victim, flaunts their “financial savvy” and ultimately directs the victim to a fraudulent cryptocurrency platform.

• Fake listing and rental scams. Fraudsters will create attractive (but fake!) listings. These fake listings are used to lure unsuspecting renters. The goal is typically to steal deposits.

These suggestions are just that – suggestions – and not an exhaustive list of every measure that can be taken to minimize risk.