Let’s keep talking about seller impersonation fraud all year long

October is full of fun frights, but it’s important also to use this time to address a topic that should be scary all year round – cybercriminals. After all, it’s National Cybersecurity Awareness Month!

Besides phishing, stealing passwords and personal information and other schemes, these online scammers have engaged in a new trick: trying to sell land and homes they don’t own before getting caught. It’s the new scam plaguing real estate professionals of all kinds, and it’s definitely worth discussing.

First, what is it? Seller impersonation fraud occurs when a scammer poses as the legitimate owner of a property, often using forged documents or stolen identities, to sell or refinance the property without the real owner’s knowledge. If they are successful, the consequences can be devastating, leading to financial loss for buyers who may unknowingly purchase a property from a fraudulent seller and legal battles for the true owners who must reclaim their property.
Here are four ways real estate agents and title companies can thwart these criminals before a sale can be finalized.

• Vet listings and let someone know if it seems suspicious. Often, these sellers will reach out to multiple agents online, only needing one Realtor to make a listing for them. Securitize any overtures coming out of thin air, and do your due diligence. Plus, if you’re suspicious a seller isn’t who they say they are, tell your title company. That industry has done a great job stopping many of these fake sellers.
• Be wary of other red flags – including fake notaries: Be cautious of sellers who push to close quickly, avoid in-person meetings or provide inconsistent information. These can be signs of potential fraud. One specific suspicious move? A seller trying to use a notary that you’ve never heard of and/or doesn’t seem to be a legitimate professional.
• Don’t be afraid of confirming ID: Always verify the seller’s identity before proceeding with any transactions. This includes checking IDs, cross-referencing with public records, and proving ownership with the help of your title company before closing.
• Work with trusted professionals: Engage reputable real estate agents, title companies, and attorneys who are vigilant about fraud and have systems in place to detect and prevent it.

As you can see, it takes all of us working together to fight fraud for our customers and partners. If you need a nationwide mobile notary provider who cares as much about your transactions and partners as you do, our team is here for you. Reach out to BBS Notary today!