GSREIN MLS and NOMAR would like to remind all subscribers and members to stay alert and take precautionary measures especially with new leads or prospects.
Real estate is a high-value target for scam artists, and as a real estate professional so are you. New technology like AI, deepfake videos, and cryptocurrency, along with the sheer variety of unsecured marketplaces and open records across the web, offer bad actors more ways than ever to pull one over on unsuspecting agents. Recently, we’ve received direct reports of incidents that serve as reminders to remain vigilant for red flags, always trust your gut, and use all resources available to you to protect yourself and your business.
Cryptocurrency Scam – This is a relatively recent phenomenon, a real estate specific version of a scam known as “pig-butchering.” In this con, agents are targeted by fraudsters impersonating affluent cash buyers. The criminal establishes rapport with agents before claiming to have accumulated wealth through digital currency investments. The perpetrator then directs agents to fraudulent cryptocurrency platforms that look real and display fake trading data.
Initially, agents who make modest investments see impressive returns and can successfully withdraw funds, creating false confidence. However, when agents then invest larger amounts, the scammers disappear with the money, leaving victims with significant financial losses. The Secret Service issued a special alert to NAR in May of this year in regards to this scheme. Read more here https://www.nar.realtor/magazine/real-estate-news/scammed-shamed-and-deepfaked-real-estate-agents-speak-out-on-crypto-con and here https://www.nar.realtor/videos/window-to-the-law/cryptoscam-targets-real-estate-professionals
- Reported Incident: “She posed as a cash buyer looking to move to the New Orleans area, she said she went to Tulane and loved the city. She lives in New York now. She provided all the proper information–proof of funds, signed a buyer broker agreement, I did videos of listings for her. She was very convincing and told me how she made her millions from crypto and she could show me how she did it. She contacted me in February and it was last week she stole $3,000 from the fake crypto exchange that looked real. Fortunately for me, it was only $3,000. This was a Zillow direct contact where she came from. She said she read all my reviews and this is why she wanted to work with me.” Report crypto fraud incidents to the FBI Internet Crime Complaint Center https://www.ic3.gov/ and to the Secret Service at CryptoFraud@SecretService.gov.
The Vacant Land Scam – This is a longtime concern that has been reported over and over again both to NOMAR and media outlets. Scammers comb through public records and flag vacant parcels of land and properties that don’t have a mortgage or other lien. Then, they’ll pose as the landowner, asking a real estate agent to list the property.
- Reported Incident: “Realtor.com Lead – [PERSON] wanted me to list his vacant land for sale. When I looked his information up on the tax records, that is when I saw that [OTHER AGENT] with [COMPANY] had it listed for one day only, so I called her and she told me the scam. She gave me [ACTUAL PROPERTY OWNER]’s phone number and I called him to let him know the scammer is back. He said I was the 5th agent that this has happened to. He has contacted the police, secured his title and is extremely grateful for how diligent the agents are. The scammer has changed his scheme by asking for me to list the property but not on the market – a pocket listing basically.”
You’ll notice a common thread above: that scam artists can come from anywhere including leads from trusted sources. Some red flags to look out for include:
- Any insistence on meeting at secluded locations: Do not schedule initial meetings at vacant properties or homes. Opt for public places like your office or a coffee shop.
- Unwillingness to provide information: Be cautious if a client refuses to share basic information like their ID, driver’s license or car details.
- Aggressive or pushy behavior: A client who is overly demanding or makes you uncomfortable should be a cause for concern.
- Unusual timelines: A seller who is overly eager to close the deal quickly might be hiding something, just as a buyer who insists on strange provisions such as a long inspection period for vacant land.
- Unusual communication methods: Be wary of clients who only want to communicate via text or email, especially if they avoid phone calls or face-to-face meetings.
- Typographical errors or inconsistencies: Look for errors in documents or inconsistencies in signatures, which could indicate fraud or deception.
- Unclear wiring instructions: Always be cautious when wiring money, especially when instructions involve banks outside the owner’s country or third-party accounts
- Too good to be true: If an investment opportunity is one you don’t fully understand or seems amiss, trust your gut.
A few best practices to protect yourself:
- Sign up for and use FOREWARN, which is free for NOMAR members, with all leads or prospects. Using FOREWARN can reveal inconsistencies, criminal convictions if publicly available, and the use of fake identities.
- Verify before you meet a client. Never meet a client alone for the first time–always meet in the office or a well-lit public location.
- Require an in-person meeting when possible. Many scammers in our digital era communicate exclusively via text message, email, WhatsApp, and phone.
- Get training to learn how to spot a deepfake video if the client requires a virtual meeting. Watch out for the forehead, the hands, the eyes, the edges of the image, and how well the video syncs up with the audio. More information is available at https://www.media.mit.edu/projects/detect-fakes/overview/.
- Keep records of every client you represent including a copy of their photo ID.
- Check app ratings and reviews and perform due diligence before investing.
- Be safe on-the-go. Secure your valuables locked and out of sight. Dress for safety as well as success: Consider forgoing flashy jewelry or clothing that could prove a hindrance. Schedule showings during the day when possible.
- Develop a safety and communication plan:
- Use the Buddy System; don’t host an open house alone.
- Come up with a distress signal, like a specific emoji or phrase you can text to a trusted friend or colleague if you feel you’ve gotten into a dangerous situation.
There are many more tips and tools to help you make safety a habit and make it home at https://www.nar.realtor/safety.
Bottom line – Trust your instincts. If you ever feel unsafe, the payoff is not worth the risk. If something seems too good to be true, it is.
