Watching Out for Scam Artists

At Sotheby’s Phoenix, it’s tough staying one step ahead of all the scam artists. The latest scheme is stealing down payments. 

Here’s how it works: someone hacks into the email of a “loan originator, a title officer, a real estate practitioner, or even a home buyer or seller.” They follow the home buying process up until closing and then the hacker sends an email from an email account that looks similar to the lender’s or title officer’s. The buyer is told to wire the down payment to the fake email address. Once that happens, the money is gone. 

While this is rare, you still need to take precautions. You can help prevent this from happening by including a signature line alert in your email that reminds you to verify who you’re sending money or sensitive information to.

I’ve learned at Sotheby’s Phoenix, the scam alert is the latest mentioned in a news video from NAR Legal Affairs. In fact, the organization has developed a notice that you can copy and paste into the signature line of your email with the reminder alert. 

The FBI’s Internet Crime Complaint Center says more than 7,000 U.S. companies have lost millions, due to scam artists, in the last few years. 

Here’s a list of even more scams:

PORTAL SCAM

In this scam, the con artist takes photos from a listed property and uses them to ask for down payments on a fictitious rental property with a different address. The agent had no idea until the owners of the property, mentioned in the rental listing, called to complain. That address was not even on the market. Meanwhile, the customer whose home was on the market was not happy with the unauthorized use of the photos. That’s why it’s important to monitor third-party portals. It’s also a good idea from time-to-time to run a Google image search. 

VACANT HOME

At Sotheby’s Phoenix, nothing beats the surprise of going to show or close on a vacant home, only to find out someone is living in it. That’s what recently happened to an agent in Florida when he went to a home for a walk-through inspection. In this case, police were called and the property was vacated. Many times, though, there is not a quick solution like this. Sometimes it can take months to get a squatter evicted. That’s why it’s important to check your vacant listings regularly or install a video camera with an alert on it. 

THE LIARS

Keep in mind, not everyone is a legitimate buyer. Some are sophisticated burglars who are casing a home to rob. That’s why at Sotheby’s Phoenix, I know it’s important to listen to potential buyer questions and see if they’re focused on personal possessions and the security system. The best thing you can do is ask for a driver’s license before showing a property. Always trust your instincts, as well. 

CRAIGSLIST

I’m sure you don’t find it surprising that fictitious rental listings are posted on Craigslist and other popular sites. Con artists look for vacant listings, pose as the owner when posting a fictitious rental ad with photos, and then ask for a security deposit and first month’s rent. At Sotheby’s Phoenix, I know you can never be too careful. If this happens to you, notify Craigslist or the online site to have the ad removed. 

There are even more scams out there — the list goes on-and-on. Bottom line, as an agent you just have to stay one step ahead all the time and again, trust your instincts. Get another realtor to go with you to show a house, if necessary, and always tell someone where you are or who you’re meeting with. 

If you or anyone you know is interested in Phoenix or Scottsdale Real Estate, please check out my website, www.Realestateforsaleinaz.com, and I’ll be happy to help.