The Better Business Bureau Warns of a Growing Trend in Real Estate Scams
The Better Business Bureau recently sounded the alarm on the escalating cases of real estate fraud, with reported losses reaching $360 million in 2016 and surging to approximately $1.3 billion just two years later. Steve Baker, an investigations specialist at BBB, authored a report highlighting the significant increase in real estate scams in recent years.
One prevalent real estate scam involves scammers sending deceptive emails to new home buyers. In these emails, scammers often pose as lawyers requesting the buyers to wire substantial amounts of money for purported “closing fees” or other fictitious expenses. Baker’s report, titled “Is that email really from the boss?”, sheds light on the alarming rise of such email scams. From 2015 to 2017, there was an unprecedented surge in email scams of this kind, with reports of real estate scams skyrocketing by a whopping 1100%. It is estimated that 80% of businesses and organizations have encountered such fraudulent emails in the past year.
To safeguard against falling victim to these real estate scams, it is advisable to always verify large transactions by phone. The BBB recommends refraining from relying solely on email communication. Baker’s report also suggests implementing “technical precautions,” such as multi-factor authentication for email logins and providing specialized training to employees to enhance fraud awareness and prioritize security measures. Furthermore, the report emphasizes the need for enhanced collaboration among law enforcement agencies, as numerous “fraud gangs” are becoming increasingly organized and inventive.
