Report Stresses Need For More Education On Real Estate Wire Fraud

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Report Stresses Need for More Education on Real Estate Wire Fraud

Due to technological advances, real estate transactions are becoming increasingly vulnerable to wire fraud. A new report by CertifID, a fraud detection software provider, highlights this trend and underscores the importance of consumer education in combating fraud in the industry.

Real estate wire fraud is one of the most prevalent types of cybercrime in the U.S. The latest FBI figures reveal that it accounted for over $145 million in losses last year. One of the most common ways scammers prey on victims is by impersonating a property owner with a phony listing.

Real estate transactions are an attractive target for fraud because they are inherently tense and deadline-oriented. Property and land deals often involve large sums of money and multiple parties. The data is also publicly available through MLS and county records, giving scammers access to crucial information to pull off fraud. Fraudsters rely on creating a sense of urgency, which is already present in most real estate deals. Many buyers and sellers may also be desperate for deals in a slower real estate market.

About 60 percent of the consumers CertfID surveyed said they received minimal or no education about fraud risks from their real estate professionals. The survey further revealed that consumers aged 65 and above were especially unaware of the dangers.

The National Association of Realtors and other trade groups encourage members to educate and remind clients about the threat of wire fraud throughout transactions. Even more training and education is probably needed. With fraud techniques evolving rapidly and becoming more sophisticated, the real estate industry will need to pay close attention to this threat.

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