
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.
ORLANDO, Fla. – Some days it can feel like the scams just never end. The news in your inbox screams about the next new scam just waiting to drain your bank account and give you a pounding headache. I can’t personally stop the scammers, but awareness is the next best thing to try to minimize their success. Below are a few current scams and some tips to avoid them:
- 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. Typically the criminals will do this through email. 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 3rd party. In 2023 Florida enacted a new law requiring each clerk of court to “create, maintain, and operate a free recording notification service…”.
- Email phishing scams. Scammers send fraudulent emails impersonating real estate professionals to steal personal information and payments. Sometimes this looks like the first example above, but not always. 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.
Keep in mind this is just a small sample of dishonest activity currently going on. Just during the time period of writing this article, I received multiple emails about new scams to watch out for. Stay aware every single day and if something seems too good to be true… it typically is. These suggestions are just that — suggestions — and not an exhaustive list of every measure that can be taken to minimize risk.
Maria Marchante is Associate General Counsel
Note: Information deemed accurate on date of publication
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