🚨 The Fraud Playbook: Real Estate Scams Targeting Agents Right Now - and How to Prevent Them

Real estate professionals are handling large sums of money, private information, remote transactions, electronic signatures, vacant properties, and emotionally stressed consumers - all while moving at high speed.

That combination makes real estate agents one of the biggest fraud targets in the country.

The problem is no longer limited to “wire fraud.” Some fraud attempts are obvious. Others are sophisticated enough to fool experienced professionals.

The reality is that many fraud losses happen because someone was rushed, embarrassed to ask questions, trusted the wrong communication channel, or assumed “someone else already verified it.”

This article breaks down:

• the major fraud schemes currently being reported

• warning signs agents should recognize

• prevention strategies

• and what to do immediately if fraud happens.

⚠️ The Most Common Real Estate Fraud Variations Being Reported

Wire Fraud / Wiring Instruction Fraud

This is still the most financially devastating fraud in real estate. You would think that this fraud scam would be so familiar to everyone that it would no longer be successful. We have to remember that it is familiar to us, but may not be to the people who are doing this form the first time or the first time in a while.

Losses increased from 2024 to 2025. Amount of losses increased with age, but this feels more reflective of the amount of money that age group has since the number of reported victims was fairly consistent across age groups from 20 to 65+. See the full stats on the FBI site.

The fraudster:

• compromises an email account OR

• spoofs an email address OR

• inserts themselves into transaction communications

Then they send:

• “updated wiring instructions”

• “last-minute changes”

• “corrected escrow information”

• “new account information”

The money is wired directly to criminals.

Sometimes the email chain looks completely legitimate.

Common Red Flags

• sudden changes to wiring instructions

• urgency

• poor grammar

• subtle email address changes

• instructions sent by email only

• pressure not to call

Prevention

• NEVER trust wiring instructions sent solely by email

• verify instructions using a known phone number

• independently confirm the recipient

• use secure portals when possible

• educate clients early and repeatedly

Important Reality

Many buyers believe:

“If the email came from someone involved in the transaction, it must be safe.”

Agents should repeatedly explain:

Email alone is not verification.

Seller Identity Fraud / Fake Seller Scam

One of the fastest-growing fraud schemes.

A fraudster impersonates the owner of:

• vacant land

• rental property

• inherited property

• investment property

• second homes

• distressed property

• can happen with occupied primary residences!

They contact an agent wanting:

• a quick cash sale

• remote closing

• no phone calls

• minimal interaction

Often they:

• communicate only by text or email

• refuse video calls

• claim to be overseas

• push for fast closing

• avoid notarization complications

The goal: sell property they do not own.

Warning Signs

• vacant land listings

• seller refuses live communication

• urgency for fast cash close

• unusual insistence on remote process

• inconsistent signatures

• suspicious ID

• communication only through WhatsApp/Text/Email

Prevention

• independently verify ownership

• verify ID carefully

• use video verification

• compare signatures

• verify phone numbers

• ask detailed ownership questions

• involve the closing attorney/title company early

Agents Should Never Assume:

• “The title company will catch it.”

• “The attorney will verify everything.”

• “The notary will handle it.”

Fraud prevention works best when everyone is actively watching.

Fake Buyer Proof of Funds

Fraudsters create:

• fake bank statements

• altered screenshots

• fake proof of funds letters

• fabricated investment account statements

Used to:

• tie up property

• gain access

• commit larger fraud schemes

• create credibility

• scam wholesalers or investors

Prevention

• verify proof of funds directly when appropriate

• watch for formatting inconsistencies

• question suspiciously vague documents

• involve lenders/financial institutions when necessary

• be cautious with unusually large cash offers from unknown parties

Rental Listing Scams

A scammer:

• copies legitimate listings

• reposts them elsewhere

• pretends to own/manage the property

• collects deposits or application fees

Sometimes the property is:

• actually listed for sale

• vacant

• previously listed

• pulled from old MLS photos

Consumers Often Lose:

• application fees

• security deposits

• first month’s rent

• personal information

Prevention Tips for Agents

• monitor your listings online

• watermark photos when possible

• educate sellers and landlords

• report fake listings immediately

• warn consumers not to wire deposits without verification

Vacant Property / Lockbox Crimes

Fraudsters use:

• stolen access codes

• copied keys

• fake showing requests

• impersonation

• social engineering

Sometimes properties are:

• occupied illegally

• stripped of appliances/copper

• used for fraud operations

• damaged during unauthorized access

Prevention

• verify showing identities

• monitor lockbox access

• remove access immediately when deals terminate

• use secure showing systems

• report suspicious showing patterns

Business Email Compromise (BEC)

This goes beyond fake emails.

The fraudster actually gains access to:

• agent email

• assistant email

• brokerage email

Then monitors communications for weeks.

At the perfect time, they intervene.

Common Signs

• unusual forwarding rules

• strange login activity

• deleted emails

• clients claiming they received messages you never sent

Prevention

• multi-factor authentication (MFA)

• strong passwords

• password managers

• cybersecurity training

• secure devices

• limited public exposure of email addresses

QR Code Fraud

Fraudulent QR codes are appearing on:

• flyers

• signs

• open house materials

• emails

• invoices

The QR code may:

• steal login credentials

• redirect payments

• install malware

• collect consumer information

Prevention

• use trusted QR generators

• inspect signs regularly

• educate consumers

• avoid scanning unknown codes

Deepfake & AI Voice Fraud

Fraudsters now use AI-generated voices and video.

Examples:

• fake broker authorization calls

• fake agent communications

• fake seller verifications

• fake lender communications

• fake assistant requests

Some scams mimic:

• actual voices

• speech patterns

• phone numbers

Prevention

• establish verification protocols

• use callback procedures

• avoid relying solely on voice verification

• create internal security questions

Social Media Impersonation

Fraudsters clone:

• agent profiles

• brokerage pages

• lender identities

Then use them to:

• solicit money

• fake listings

• collect leads

• build trust for larger scams

Prevention

• monitor fake accounts

• verify official pages

• educate followers

• report impersonators quickly

Title & Deed Fraud

Fraudsters may:

• forge deeds

• file fraudulent documents

• transfer ownership illegally

• use stolen identities

Vacant land is a particularly common target.

Prevention

• encourage owner monitoring (fans.gsccca.gov)

• verify identity carefully

• scrutinize unusual transactions

• involve experienced closing professionals early

🛡️ What Agents Should Do to Prevent Fraud

Slow Down Verification — Even When Everyone Else Is Rushing

Fraud thrives in urgency.

A delayed closing is frustrating.

A six-figure wire loss is devastating.

Use Multi-Factor Authentication Everywhere

Especially for:

• email

• cloud storage

• transaction management systems

• banking

• e-signature platforms

Train Clients Early

Consumers often hear fraud warnings:

• too late

• only once

• during closing panic

Fraud education should happen:

• at buyer consultation

• at listing appointment

• before earnest money

• before closing

Independently Verify Sensitive Information

Never verify using the same communication chain where the information arrived.

If wiring instructions arrive by email:

• verify by phone

• using a known number

• not the number inside the suspicious email

Watch Behavioral Red Flags

Fraudsters often:

• avoid live conversation

• create urgency

• resist verification

• avoid video calls

• overexplain

• disappear when challenged

Protect Your Own Systems

Agents are often the entry point.

Use:

• strong passwords

• password managers

• secure Wi-Fi

• software updates

• antivirus protection

• MFA

• limited public exposure of personal details

Create Office Verification Policies

Brokerages should have:

• wire protocols

• identity verification procedures

• callback procedures

• escalation policies

• cybersecurity training

🚨 What Agents Should Do If Fraud Happens

📞 Immediately Contact:

• your broker

• the closing attorney/title company

• the bank/wire institution

• law enforcement

• FBI IC3 (Internet Crime Complaint Center)

Time matters enormously.

In some cases, wires can be frozen or recalled if action happens quickly.

🧾 Preserve Everything

Save:

• emails

• texts

• screenshots

• call logs

• wire receipts

• IP information

• audit trails

Do not delete suspicious communications.

🧠 Do Not Let Embarrassment Delay Reporting

Sophisticated fraud schemes fool:

• consumers

• attorneys

• brokers

• lenders

• experienced agents

Fraudsters are professionals at manipulation.

Quick reporting matters more than pride.

⚖️ Understand That Fraud Investigations Become Legal Matters Quickly

There may be:

• insurance issues

• E&O implications

• regulatory concerns

• litigation risks

• privacy obligations

Agents should avoid making definitive legal conclusions about:

• liability

• criminal conduct

• entitlement to funds

⚠️ REALsmart Reminder

Fraud prevention is part of everyday real estate practice. Slow down. Verify independently. Question urgency. Protect your accounts. And remind your clients early and often that no wire instructions, payment changes, or sensitive information should ever be trusted solely because it arrived in an email or text.

.📥 Download / Tool / Resource

Use AI to adjust your delivery to land most effectively for your client's personality:

Fraud Conversation Guide For Different Personality Types.pdf

Download PDF • 247KB

Create a visual warning or buy one that you can use for all of your transactions:

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If this topic matters to your business, you’ll want to hear how it plays out in real time.

Cheryl Conner King

Founder & Instructor

REALsmart Real Estate School

Attorney | REALTOR® | CE Instructor

📍 Based in Georgia | Teaching Statewide