Scammers are increasingly targeting real estate transactions, exploiting the substantial sums of money involved. The FBI reported nearly 10,000 victims of real estate scams in 2023, with losses exceeding $145 million. Many home buyers and sellers have been targeted, often with little education on how to protect themselves from wire fraud, a common tactic where scammers trick victims into sending money to fraudulent accounts.
Wire transfer fraud is a major concern, where scammers intercept legitimate payment instructions and provide false details. This type of fraud is executed through Business Email Compromise (BEC) attacks, where criminals pose as trusted contacts to divert payments. To safeguard against this, individuals are advised to use secure communication channels, verify payment instructions directly with trusted contacts, and consider alternative payment methods if any doubts arise.
Predatory lending and mortgage relief scams are also prevalent. Predatory lenders use deceptive practices to lure borrowers into unaffordable loans, while mortgage relief scams promise foreclosure assistance but require upfront fees. Victims are encouraged to consult trusted financial advisors, avoid high-pressure tactics, and seek help from legitimate sources rather than paying upfront fees.
Deed and title fraud, along with rental listing scams, further compound the risks. Fraudsters may illegally transfer property ownership or create fake rental listings to deceive victims. To protect against these scams, it’s important to regularly monitor property titles, use title insurance, and verify rental property details before making any payments. Vigilance and careful verification can help homebuyers avoid falling victim to these fraudulent schemes.
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