How Can I Protect Myself From Real Estate Fraud?

How Can I Protect Myself From Real Estate Fraud?

Why Real Estate Fraud Is Increasing

Real estate fraud is becoming more common, sophisticated, and difficult to detect.  Advances in artificial intelligence (AI) are making deceptive communications easier to create and increasing the risk of fraud in real estate transactions.

How Wire Fraud Works

Many schemes involve wire fraud; the intentional use of electronic communications to deceive someone and steal money, property, or services. Fraudsters may use:

• Phone calls
• Emails
• Text messages
• Internet-based communications
  

Scammers may hack an email account to impersonate a title company, real estate broker, or agent.  They then send convincing Email messages containing fraudulent wiring instructions, attempting to divert a homebuyer’s down payment to an account they control.

Scammers may also clone voices from online audio or video recordings to make fraudulent phone calls sound convincing.

Both buyers and sellers can be targets of fraud during a real estate transaction.

A Resource for Protecting Yourself

The National Association of Realtors® offers a comprehensive resource found below describing situations in which real estate fraud may occur and practical steps that can help prevent or disrupt fraudulent activity.  It is well worth taking the time to read.