Protect Yourself from Real Estate Scams in the Home Buying and Selling Process

Real estate transactions are among the most significant financial moves most people make in their lives. Whether you’re buying your first home, upgrading to accommodate a growing family, or selling to downsize, the process is both exciting and stressful. Unfortunately, it’s also a prime target for scammers who prey on the complexities of real estate deals to trick unsuspecting buyers and sellers out of their hard-earned money.

One particularly concerning type of phishing scam is known as a Business Email Compromise (BEC) scam. These scams are especially prevalent in real estate transactions, where large sums of money are transferred between parties.

A Denver Couple’s Story

Take the recent case of Drew LeMay and his partner, a Denver couple who were eagerly awaiting the final steps of purchasing their dream home. “We were very much looking for a home with kids in mind and, you know, having enough space to start a family,” Drew said. They were thrilled to find a property that checked all the boxes and quickly put in an offer.

But as they moved through the process—scheduling inspections, gathering documents, and sending countless emails—things took a turn for the worse.

Just days before closing, they were hit with a scam that cost them tens of thousands of dollars, money they thought was going toward their new home. It was a heartbreaking and financially devastating experience that highlights just how real the threat of these scams is.

Understanding BEC Scams in Real Estate

BEC scams are sophisticated frauds where criminals gain access to a legitimate email account through phishing or other means, then use that access to send fraudulent emails that appear to come from a trusted source.

In real estate, this often means sending an email that looks like it’s from a real estate agent, title company, or escrow officer, instructing the buyer or seller to wire funds to a bank account controlled by the scammers.

Once the money is sent, it’s nearly impossible to recover, as the funds are quickly moved through various accounts, often overseas.

How to Protect Yourself

1. Verify Wire Instructions: Always verify wire instructions directly with your real estate agent, title company, or attorney over the phone or in person. Never trust wire instructions sent solely via email.

2. Be Cautious with Emails: Look out for suspicious emails, especially those requesting a change in payment methods or account details. Check for subtle changes in email addresses, such as misspellings or slight variations in domain names.

3. Use Secure Communication: Whenever possible, use secure communication methods for sharing sensitive information. Some title companies offer encrypted email services to protect your data.

4. Trust Your Gut: If something feels off or too rushed, take a step back. Scammers often try to create a sense of urgency to prevent you from double-checking their requests.

5. Report Suspicious Activity: If you suspect you’ve been targeted by a scam, report it immediately to your bank, local authorities, and the FBI’s Internet Crime Complaint Center.

The dream of homeownership or a successful sale shouldn’t turn into a nightmare due to scams. By staying vigilant, verifying information, and using secure communication methods, you can protect yourself from falling victim to these sophisticated frauds. Remember, in real estate transactions, caution is your best ally.

For help with an upcoming real estate transaction, get in touch with our trusted team of real estate agents at the Zielinski Real Estate Group in Southern New Jersey. Call us at 856-264-8671 or e-mail Scott@zhomesrealestate.com today!