What is Seller Impersonation Fraud?

Seller impersonation fraud targets vacant or non-owner-occupied properties, with the perpetrator posing as the owner to initiate a sale. Utilizing public records, email compromise, and persistence, they aim to deceive the Realtor, title company, and buyer before the true owner discovers the fraudulent sale.

One of the Fastest Growing Real Estate Cyber-Fraud Crimes in 2023

​​​This widespread fraud has prompted the U.S. Secret Service to issue an alert on real estate scams involving vacant properties, indicating the precision with which these schemes are executed.

The Hustle

A criminal searches public records for mortgage-free real estate, focusing on vacant lots or rental properties. The perpetrator poses as the property owner, contacts a real estate agent to list the property below market value, and insists on remote notary signing or a seller pre-sign. The criminal through their attorney submits falsified documents to the title company, and as a result  the closing proceeds electronically​.

​What Can You Do ?

In the current real estate climate, eager Realtors may prematurely send a listing agreement after just one discussion with a potential seller, especially if they are not aware of the critical signs to watch for.

1. Educate Realtors in your area so they know the signs.

2. Ask the seller for non-public info, such as their original title commitment when they bought the property.

3. Verify their identification; consider using services like CertifID to delve deeper into verifying whether the person is who they say they are.​