We have been notified of fraudulent commission advance applicants who are targeting brokerages in Florida. As there has been an increase in these scams locally, we are sharing this information with all members.

Scam Alert: Protect Your Clients & Yourself

As technology advances, so do real estate scams. Fraud schemes are as prevalent as ever. It is imperative in today’s world that you are adept at spotting scams and protecting your clients and yourself. Failing to do so could cost you/ your clients huge monetary losses. Although fraud schemes are constantly evolving and changing, below is a list of some common schemes, potential red flags, and tips to stay safe.

Scams

• Fake sellers and landlords — Someone poses as the owner of a property to fraudulently sell or list it for rent. 

• False documents, applications, or contracts — People forging documents, agreements and applications, such as identification documents and commission advance applications. They may also create false emails, websites, and phone numbers to control all means of communication. 

• Wire fraud — This is not a new scheme, but it still occurs. Typical wire fraud can involve a scammer hacking the email of a party in a real estate transaction and creating a fake email address. Then, the scammer provides the buyer with wiring instructions, directing them to place the funds into that account. Funds are then wired directly to the scammer.

Possible Red Flags*

• Person will only communicate online and avoids in person meetings. 

• Person is unable to provide identification/ makes excuses.

• Vacant lots.

• Person is in a hurry to complete transaction/ puts pressure on receiving money. 

• The terms seem too good to be true. 

*These do not mean that transactions involving the items listed will always be fraudulent, but that you should be careful and vigilant when they are involved.  

Tips

• Stay educated on common fraud schemes and attentive to any details that seem off.

• Educate your clients on fraud schemes. 

• Enable two-factor authentication for emails. 

• Be thoughtful about what you post publicly or on social media, as it is an easy way for scammers to find information.

 This information is provided for educational purposes only and should not be construed as legal advice or representation and should not be relied upon as such. Broward, Palm Beaches & St. Lucie Realtors® cannot provide legal advice or opine about the specifics of your situation.