Real Estate Fraud Increases

Real estate fraud increases every day and the Florida Association of Realtors wants you to know about it so you don’t become a victim.

Be careful of the cons we’re told almost daily. Fraud increases are being seen across the nation, and authorities want all of us to know about them so we don’t get ripped off.

Real estate scams range from wire fraud to fake rentals. Consumers are warned to verify wiring instructions, check property records and be cautious with unsolicited emails.

Email inboxes receive emails daily saying that recipients have won $500,000 or a $1-million. The scams are so common most of us just hit delete. Real estate scams are rampant across the nation and particularly in Florida.

The Cape Coral Police Department has warned of repeated scams, where crooks steal the identities of real land owners and then try to sell vacant lots they do not own. “Scammers are always looking for ways to scam people out of their money or property,” said Cape Coral police department Public Information Officer Phil Mullen.

Land theft is one of the oldest scams there is and it got its start in Florida in the 1950’s. There are an overabundance of scams but these are some of the most popular, according to the Florida Association of Realtors.

Wire fraud scams

This is not a new scam, but there are still reports that this is occurring. For this scam, the fraudsters impersonate real estate professionals and trick victims into wiring funds into fraudulent accounts. Typically the criminals will do this through email. A simple way for a buyer to avoid becoming a victim of this fraud is to pick up the phone and confirm with the closing agent what the wiring instructions are. For real estate licensees, make sure you are using secure communication methods.

Deed fraud and title theft

This scam typically involves vacant land owned by an out of state owner and are widespread in Florida. The fraudster steals personal information pretending to be the seller. They then forge a signature to transfer someone else’s real property. Next, when the property is in the fraudster’s name, they will attempt to mortgage or sell the property to an innocent third party. In 2023, Florida enacted a new law requiring each clerk of court to “create, maintain, and operate a free recording notification service…”.

Email phishing scams

Scammers send fraudulent emails impersonating real estate professionals to steal personal information and payments. Sometimes this looks like the first example above, but not always. Be cautious of unsolicited offers.