We stay focused on our processes, but we also watch out for scammers and fraudsters who try to take advantage of our customers and their transactions. Seller impersonation fraud still happens in our industry, but we can work together to stop the madness.
The same approach is needed when safeguarding your customers’ transactions. While there are multiple scams to keep on your radar, seller impersonation fraud has grown across the industry. Let’s look at this prevalent type of fraud and how we can keep the scammers in check.
- Scammers eye those neglected lots and second homes. They craft fake IDs that convince real estate agents that they're the rightful owners. Then, it’s often a fast break to a cash-only sale with electronic communication and a remote closing.
- Seller impersonation fraud is more common than you might think. A survey conducted by CertifID in October 2023 revealed that 54% of real estate professionals encountered at least one instance in the preceding six months. Additionally, a substantial 77% of surveyed professionals observed a surge in fraudulent attempts during the same timeframe.
- As AI grows in our industry, fraud attempts become harder to identify and prevent. Cybercriminals use AI to further their fraud attempts by mimicking voices in calls and writing impeccable emails. As long as they go undetected, the fraudsters remain a threat.
Add these ideas to your fraud protection playbook to kick Scammy McScamerson out of the game.
- Be aware. That seems simple, but scammers are just waiting for us to let down our guard.
- Remain vigilant when verifying a seller’s identification, especially if it seems too good to be true. Closing a deal is always exciting, but the time it takes to do some additional verification can save you from fouling out.
- Education and awareness are two keys to staying ahead of these criminals. Share what you know and encourage others to investigate the dangers and prevention of fraud.
Working together keeps scammers at bay, and we are here to partner with you daily. Reach out to us here with any questions or concerns.