We love the Halloween season as much as anyone (though we prefer treats to tricks), but it’s time to talk about a scam everyone in real estate should be frightened of right now.
Seller impersonation fraud is not new. In fact, we talked about it last year. But it’s becoming more frequent, more sophisticated and more costly. That is why Wheatland Title wants Illinois real estate professionals to recognize the warning signs and know when to slow down and verify.
Recent survey findings from the American Land Title Association underscore the growing risk:
- 59% of title companies reported at least one seller impersonation fraud attempt within the last year.
- 45% said they had encountered at least one fake seller attempt in the past month.
- Paid-off properties with absentee owners are most frequently targeted.
What Is Seller Impersonation Fraud?
It’s exactly what it sounds like, and the consequences can be terrifying. A cybercriminal poses as a property owner, persuades a Realtor to list the property and attempts to collect the sale proceeds before anyone discovers that the true owner was never involved.
Title professionals like us are often the last line of defense in this scam. We take pride in that role, but we’d all rather stop these schemes before they reach the closing table.
Even experienced professionals can be deceived, so how can you tell if you’re being targeted as the listing agent? We’re glad you asked!
Be wary of listing out of nowhere. An unexpected, easy listing can feel like a great opportunity, but it may also warrant closer attention. Be especially cautious when the property is vacant land, the owner lives outside the area, the seller communicates only by text or email, or there’s pressure to move unusually quickly.
Confirm the seller’s identity early. Review identification carefully and compare the seller’s information with available property and public records. Ask property-specific questions that a rightful owner should be able to answer. Experts urge you to use an independently verified phone number or mailing address rather than relying solely on contact information supplied by the prospective seller.
Pay attention to payment instructions. You’ve heard it before, but it bears repeating: Be cautious of requests to send money to an account with a different name or overseas, or a request for a non-traditional payment method. These could be signs something is amiss, especially if there’s trickery or urgency involved.
Give us a heads up. If something does not feel right, contact our team as early as possible. A quick conversation can help us determine whether we need additional verification before the transaction moves forward. We have plenty of tools and resources to ensure everyone is who they say they are, but communication is always key to thwarting these fraudsters.
Thank you for trusting the Wheatland Title team with your transactions. Contact us anytime with questions or fraud concerns. Let’s tackle this together!
