Are you protecting your business from real estate scams? The sad truth is that there are many bad actors working to deceive and scam real estate professionals through a number of creative schemes.
This week, we received two scam alerts from members businesses. We've outlined the details of them below so you can watch for similar instances. No matter the tactic, there are things you can do to protect yourself:
- Use MAAR member benefits like FOREWARN to verify prospect identities and cross reference information.
- Ask informed questions – don't move forward with someone who's not forthcoming with their intentions.
- Never click a link in an email from someone you don't know.
- When something feels suspicious or too good to be true, ask a trusted colleague to review the situation or reach out to MAAR for help.
Property Owner Impersonation Fraud
An individual contacted a REALTOR® claiming to own a vacant tract of land and wanted to sell it. He appeared legitimate, providing parcel information, ownership details, acreage and other property records. He agreed to a listing price, requested electronic signatures and pushed to move the transaction forward quickly.
The problem: he was not the owner.
Fortunately, the REALTOR® became suspicious, conducted additional verification, and discovered the property was not for sale. The individual had been impersonating the actual owner in an attempt to fraudulently sell the land.
Seller impersonation fraud is becoming increasingly common, particularly with vacant land and absentee-owned properties. Scammers often use public records to gather convincing information, making them appear legitimate at first glance.
Common warning signs include:
- Refusal to meet in person or participate in a live video call
- Communication limited to email and text
- Pressure to list the property or close the transaction quickly
- Inconsistent contact information
- Inability to provide valid identification
- Missing or questionable ownership documents
- Vacant land owned by someone who lives out of the area
Before listing any property, verify ownership through multiple sources:
- Obtain a government-issued photo ID.
- Review deed or title documents that match the seller's identity.
- Independently verify ownership through public records and other trusted sources.
- When possible, meet the seller in person or conduct a verified video call.
If something feels unusual, investigate further before proceeding. Taking time to verify ownership protects clients, prevents fraud, and safeguards your reputation and license.
Member Impersonation Scam
A brokerage received a request that appeared to come from a member asking to update their email address and contact information. The request included accurate personal and professional details, making it appear legitimate. However, the new email address provided did not belong to the member.
Fortunately, the discrepancy was caught before any changes were made.
While the exact objective is unknown, scams like this often aim to gain access to email accounts and monitor communications until an opportunity arises—frequently involving financial transactions, wire transfers, or other sensitive information.
To protect yourself:
- Be cautious of unexpected requests involving account changes.
- Verify contact information before making updates.
- Use available verification and identity-checking tools.
- Report anything that seems unusual or suspicious.
Fraud attempts continue to evolve, but awareness and verification remain the best defense. If something doesn't seem right, trust your instincts and take the time to confirm before acting.