One of the most common scams that continue to plague the real estate industry is wire fraud. It seems as though financial losses from all types of real estate cybercrimes have risen almost as fast as home prices. According to the FBI’s Internet Crime Report, losses to consumers last year totaled more than $350 million dollars. Those consumer losses are usually to prospective tenants or buyers who are so anxious to move into their new apartment or home that they are easily duped.

Being aware and alert to such devious schemes is essential if you want to thwart such unnecessary losses. Some recent attempted scams in the rural areas of eastern Washington include internet listings for fake rentals and fake property listings. Local closing companies have reported detection of some such scammers who are impersonating sellers by using fake ID’s .

Rental scams are usually perpetrated on potential tenants by advertising fake rentals and collecting up-front deposits or even full lease payments. The main tell in this scam is when properties are listed for below market rents or specifically when they demand deposits or rents but are unable to show the property. Once you send the money, you never hear from the swindlers again. Scammers use fake listings to cheat potential buyers in a similar way.

In a wire fraud scenario, scammers impersonate brokers or closers by hacking into email accounts or calling you to demand a deposit of money into bank accounts that are not the authorized accounts of closers. This type of scam is devastating, but is also easily avoided by always meeting with your broker or closer face to face to be sure everything is on the up and up before making any wire transfers.

Another less obvious swindle is when companies or individuals send letters to specific land owners with offers to purchase that come with the promise of a quick and easy closing. The catch is that they only buy if it is for pennies on the dollar, but they don’t tell you that part. They find success often enough to make it worth their while to continue sending thousands of such solicitations through the mail each month. Once they purchase a property at a below-market-price, they sell the property at market value and make bank. You can avoid this con by asking a Realtor® for a current property valuation instead of responding to that type of solicitation.