Fraudsters are out to get your money, one way or another. This time, they’re impersonating homeowners and “selling” properties they don’t actually own.
An October survey by CertifID, a wire fraud protection company, found that 54% of U.S. real estate agents said they had experienced at least one seller impersonation attempt in the last six months.
Here’s how the grift works: According to the U.S. Secret Service cybercrime investigation, scammers scour public records like property taxes or land titles and find properties with no mortgages or other liens attached to them. Next, they get the owner’s name, address and tax ID and create a fake listing posing as that person. The most common properties they go after are vacant lots, empty houses and rentals.
The scammer usually “lists” the home below market value to quickly generate buyer interest and specifies they prefer an all-cash offer. You can already see where this is going: After an unwitting buyer makes an offer, the scammer accepts, but refuses to have an in-person close and asks for all closing documents to be signed remotely. The scammer may even have a cohort impersonate a notary to avoid having to show a valid ID.
Once the documents are signed and the cash, be it a down payment or the full “purchase” price, is deposited with the title company, the money gets forwarded to the scammer — who disappears into thin air while the buyer gets the shaft.
According to the FBI, seller impersonation scams are just one facet of real estate wire fraud schemes that cost victims over $446 million in losses in 2022 alone. So far, in 2023, the agency has seen a 72% increase in stolen money from fake real estate deals. Between December 2022 and October 2023, wire fraud victims (from real estate and other scams) have lost over $17 billion. (Sound familiar? In August, I wrote about a similar scam where fraudsters pretend to be mortgage lenders and fool the title companies into sending them money).
Like every other problem facing the real estate market these days, the increase in property-related fraud is a byproduct of the super-tight housing market (low inventory, high mortgage rates/home prices and more buyers than sellers), Tyler Adams, CEO of CertifID, tells me. Once they find their dream home, buyers can feel “immense pressure to close” to ensure the deal goes through, he says. This puts them in a vulnerable situation that, if buyers aren't careful, can leave them with a “massive loss” that’s almost impossible to recover from.
“Homebuyers are liable for any transaction they initiate, so it’s important [they] act with caution,” Adams says.
So, how can you protect yourself? Here are a few tips, courtesy of the Secret Service, which investigates financial crimes including wire fraud:
- Do your own research into the property.
- Always request an in-person or video meeting before closing.
- Ask to see an official government ID.
- Be cautious if a seller accepts a below-market offer in exchange for an all-cash deal or a quick close.
- Never let a seller arrange their own notary closing.
- Always research the title company and attorney to verify they are legitimate before completing any sales transaction.
In short, don’t let the excitement of finally finding a good real estate deal in this nightmarish market lead to disaster. Be extra cautious; if something seems too good to be true, it probably is.
Comentarios
Publicar un comentario