10/15/24

While our teams already opened National Cybersecurity Awareness Month with a warning about phishing emails, staying safe from online scams is a year-round priority. That’s why we’re revisiting the topic of seller impersonation fraud. This new-ish scam became prevalent in 2023 and continues to plague all of us in real estate.   

What is it?

Seller impersonation is exactly what it sounds like. Cybercriminals (fake sellers) pretend they own a property, convince a REALTOR® to list it and push hard for a sale (often all-cash) so they can pocket the money before anyone notices. How does this fit into the theme of cybersecurity? Often, these scammers scour online property information and other digital documents to help them pull off the heist.  

How can real estate agents help?

• Keep this fraud on your radar. Be extra wary of any listing that seems to come out of thin air, especially for vacant lots, second homes and other properties that are paid off and often uninhabited. Scammers usually contact multiple agents, trying to get them to bite on the listing. Don’t be the one who gets caught!  
• Verify your clients are who they say they are:  Always confirm the seller’s identity before proceeding with any listing or sale. This includes checking IDs, cross-referencing with public records and sharing your suspicions with others. Fraudsters are becoming increasingly sophisticated with fake IDs, so take the extra steps necessary to ensure you’re dealing with the rightful owner. You can even ask questions only the rightful property owner would know or request the property’s official documents.    
• Let our teams know if you’re still suspicious. In other words, don’t keep worries to yourself. If you’re still suspicious, that’s OK. We have tools and resources to help ease concerns so everyone can get to the closing table. In general, title professionals have been successful in combating this scam, but fraudsters are always evolving. In fact, they’re now trying to impersonate the title company to get around us completely in some cases.  
• Remember to stay aware of all kinds of fraud. As the leaves start to turn, all of us in real estate are hoping for a busy season, but don’t let your guard down. Scammers are counting on us getting distracted by more work or the hustle and bustle of the upcoming holidays.  

Raising awareness among buyers, sellers, and real estate professionals about the risks and signs of fraud is crucial. Educational initiatives and regular training can make a significant difference, which is why we repeat these warnings – and others like it often. After all, it’s important to #SecureOurWorld and all your transactions along the way! Reach out to us anytime!