Your client is so close to getting the keys to their new home – this is when excitement (and nerves) run high. Unfortunately, it’s also when scammers might strike. Homebuyers are prime targets for identity theft scams because they’re often wiring money and sharing personal info under time pressure.
As a real estate agent, you can be the voice of caution. Let’s break down some major red flags for scams targeting homebuyers, so you can spot trouble and stop it in its tracks.
🚩 Phishing Emails Pretending to Be “Official”
This is the classic. A buyer might receive an email that looks like it’s from their agent, lender, or title company, but it’s actually from a fraudster. These emails often urgently request sensitive info or prompt the buyer to “update” their account with personal details.
Red flags? Check the sender’s address closely – scammers will use an address that’s almost correct (like one letter off). Also, beware of generic greetings (“Dear Customer”) or unusual requests (like providing your bank login). One common phishing ploy is sending fake wire instructions via email.
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For instance, a hacker who hacked someone’s email may send the buyer “new” wiring details for the closing – which really direct money to the thief (nar.realtor).
Always tell your buyers: if an email about money or personal info seems even slightly odd, pause. Verify by calling the known number of the supposed sender. It’s better to double-check than to be sorry.
🚩 “Smishing” Texts and Odd Phone Calls
Scammers don’t just use email – they might text or call, too. Your client might get a text claiming to be from their bank or an escrow agent: “URGENT: Issue with your home purchase, click this link.” This is called smishing (SMS phishing). The link could steal their info or install malware.
Advise clients to never click links from unexpected texts. Similarly, be wary of phone calls asking for immediate action. A common scam is someone calling, posing as the title company, saying there’s a problem and asking the buyer to confirm personal details or even payment info.
Legitimate professionals usually don’t handle these matters through random texts or calls. If in doubt, your client should hang up and call the official phone number they have on file for the bank/title company.
🚩 Fake Wire Transfer Instructions
The wire transfer scam is so prevalent it deserves its own mention. This typically happens via a spoofed email (as mentioned above) or even a phone call from a con artist. The scammer will provide new or corrected instructions on where to wire the closing funds.
It might come with a convincing reason: “Our bank account changed” or “There was a typo in the earlier instructions.” This is almost always bogus. Any last-minute change in wiring instructions is a screaming red flag. We tell every client from day one: We will never change wiring instructions via email at the last moment. If they see a message like that, assume it’s a scam and contact you immediately.
The FBI and real estate industry have warned repeatedly about this exact scam because it’s so common and costly. The only safe course: verify, verify, verify – by calling the title company or attorney using a known number, not one provided in the suspicious message.
By watching for these red flags and maintaining a healthy skepticism, you can help your homebuyers avoid falling victim to identity theft scams. Encourage them to slow down and double-check anything that doesn’t feel right. It’s far better to question a legitimate email than to trust a fraudulent one.
Want to Be an Even Bigger Hero for Your Clients?
Make sure you are fully educated on the latest scams and defenses. One easy way is to take an online Real Estate CE course on fraud prevention. These courses walk through real-world scam scenarios and how to handle them, so you’ll be prepared for anything.
Plus, you’ll earn those all-important Real Estate CE credits toward your continuing ed requirements (hello, license renewal!). In a field where new scams pop up all the time, continuing education for real estate agents isn’t just a box to check – it’s a toolbox to use.
So consider adding a fraud awareness or cybersecurity course to your learning plan. Your future clients will thank you, and you’ll navigate transactions with confidence knowing you can spot the scammers’ tricks a mile away.
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For real estate professionals, understanding these concepts can be particularly valuable during discussions with clients about why REALTORS® and real estate agents are knowledgable professionals.
If you’re preparing for your Real Estate Continuing Education or looking to enhance your knowledge through a Real Estate Course, topics like preventing identity theft can help set you apart.
As part of your License Renewal Course or other Real Estate CE efforts, staying informed on foundational property concepts can make a big difference in your expertise and client relationships.