3 Signs of Real Estate Scams To Watch For

Real estate scams can ruin both personal and professional lives. Watch out for these three signs of scams.

3 Signs of Real Estate Scams To Watch For

Real estate scams can ruin both personal and professional lives. Watch out for these three signs of scams.

Written by:

Tyler Adams

Read time:

4 minutes

Category:

Real Estate

In a competitive real estate market, buyers and sellers feel compelled to act fast to jump on the best deal they can. But now, perhaps more than ever, everyone should proceed with caution.

With large amounts of cash trading hands and many touchpoints throughout, scammers can easily take advantage of the home-buying process in an attempt to profit.

Fortunately, as scammers have evolved, so have the tools and resources that can protect your clients and the finances of every party involved.

So as you embark on your journey, here are some of the top real estate scams to watch out for and new ways to add security to your wire transfer workflow.

Watch out for wire fraud.

After a lengthy escrow and closing process, the parties in the real estate transaction finally reached the finish line and are ready to submit the information needed to finalize the wire transfer.

It’s at this point that scammers interject themselves into the workflow, imitating parties on both sides of the transaction to direct money to their accounts instead.

There are obvious ways to mitigate these risks, such as not relying on indirect means of communication. However, modern industry tools can introduce a secure, end-to-end method for clients to verify account and personal information and ensure money is sent to the correct destination.

Be wary of unreported property issues.

Demand for property is increasing and inventory cannot catch up, so buyers may be rushed to make a decision or inclined to overlook some otherwise obvious issues. Unfortunately, scammers know how these emotions play into the real estate market and are looking for opportunities to take advantage of them.

Therefore, encourage each party in a transaction—including the agents—to perform an independent property inspection and thoroughly review the report. Buyers should also take the time to thoroughly review the property disclosure statements.

Similarly, escrow providers and title companies can be affected by these real estate scams. At best, they waste valuable time and resources. At worst, they find themselves involved in an investigation of fraud.

Don’t trust unrealistic loans.

Scammers may impersonate a bank and offer to help with the loan application and approval process, or simply alter the loan terms after the process has started. This is why every party involved in the financing process needs to be fully aware of what they are signing up for and who will provide the finances.

To help with this, encourage buyers to rely on independent lending resources, trusted bankers, or sources recommended by professionals to shepherd them through the process.

Fight back against real estate scams.

Cybercrimes are on the rise, spam messages are seemingly endless, and criminals are consistently looking to take advantage of unsuspecting victims and conduct real estate scams. Now, it is everyone’s responsibility to ensure the right tools and controls are in place to fight back.

Fortunately, with the right research, trusted partners, and tools designed to facilitate secure wire transfers, you can not only protect your business, but also educate others in the process.

Are you ready to learn more ways to prevent wire fraud and educate those you work with on how to fight back? Then the team at CertifID welcomes you to download our resource, The Wire Fraud Prevention Guide.



Tyler Adams

Co-founder & COO

Tyler brings a decade of leadership experience developing and launching technology businesses. Before co-founding CertifID, Tyler led new product development at BCG Digital Ventures for Mercedes-Benz, First American Financial, Boston Scientific, and Aflac.