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  • Geebo 8:00 am on May 2, 2023 Permalink | Reply
    Tags: , , real estate, ,   

    Craigslist rental scam leads to identity theft 

    By Greg Collier

    When we discuss rental scams, we mostly discuss how victims lose money. However, there is another pitfall to the rental scam, and that’s having your identity stolen. That could end up costing a rental scam victim even more money and headaches after they lose money to the scammer.

    Typically, rental scams involve individuals who pretend to be landlords or property managers in order to deceive potential renters into paying upfront for a rental property that they have no right to rent out or don’t even own. The scam begins with an advertisement for a rental property that appears to be priced well below the market rate, which attracts the attention of potential renters. The scammer then persuades the victim to pay a security deposit or the first month’s rent before they have had the chance to view the property. Once the payment is made, the scammer may become unreachable or vanish altogether, leaving the victim without a rental property and without any recourse to recover their money.

    But what these stories sometimes fail to mention is the phony application process scammers make victims go through. To make the scam seem more legitimate, rental scammers will have their victims fill out rental applications that ask for the victim’s personal and financial information. Once the scammers have that information, they can obviously use it for more profitable crimes.

    For example, a woman in Connecticut found a rental home on Craigslist that was well within her budget. The rental scammer had her fill out an application that asked for all pertinent information they would need for identity theft. This included the victim’s Social Security number, driver’s license number, and tax history. Just a few days later, the scammer tried to open a credit card account in the victim’s name. The victim had to freeze her credit for a year, which comes with its own set of issues.

    When filling out a rental application, avoid giving out information that is not publicly available, such as your Social Security number, driver’s license number, and banking information.

    However, before you even get to that step, you should research the property first. The listing in the story was copied from a Zillow listing where the home was for sale., Information like this can be discerned just by doing a Google search for the property’s address. And you can always check the property records with the county.

    https://youtu.be/RkiYbFsrIWU
     

  • Geebo 8:00 am on April 28, 2023 Permalink | Reply
    Tags: real estate, ,   

    Just how bad are rental scams today? 

    By Greg Collier

    Ever since real estate listings have been online, there have been rental scammers. The rental scam in real estate is where scammers pose as landlords or property managers to trick prospective tenants into paying money upfront for a rental property that they do not own or have no authority to rent out.

    The scam usually begins with an advertisement for a property that is below market value, making it attractive to prospective renters. Once a victim expresses interest in the property, the scammer may request payment of a security deposit or the first month’s rent before the victim has seen the property. After the payment is made, the scammer may become difficult to reach or disappear entirely, leaving the victim without a rental property and out of money.

    The rental scam is also one of the more common scams we’ve discussed on this blog. Much like the jury duty scam, hardly a day goes by where we don’t see a rental scam story in the news. However, the scam may be much worse than we originally thought.

    For example, a homeless family in Atlanta thought they had found a home that they could afford. They paid $3000 to someone they thought was the property owner. The family was even given two sets of keys to the property. They weren’t staying in the home long before the real property manager showed up and allowed them 24 hours to vacate the premises.

    When a local news station spoke with the property management company, the company said it’s part of their job to visit their vacant properties that have been illegally occupied. The company also commented that this happens around 15 times a week. And that’s just one property management company in one city. Now just imagine how often situations like this happen not only across the country, but in your area as well.

    Thankfully, the property management company tries to help the victims they’ve encountered, but when someone has just lost all the money they had to scammers, it’s hard to imagine how much help can really be offered.

    To avoid falling victim to a rental scam, it is important to do your research and verify the legitimacy of the property and the person claiming to be the landlord or property manager. Always insist on viewing the property before making any payments, and be wary of any requests for personal or financial information that seem unnecessary or suspicious.

     

  • Geebo 8:00 am on April 10, 2023 Permalink | Reply
    Tags: , , real estate, ,   

    Secret Service warns about real estate scam 

    By Greg Collier

    Another scam that we’ve seen reported more in the news lately is the vacant lot scam. This scam typically involves scammers who try to sell a vacant lot that they do not actually own or have the right to sell.

    The process of the vacant lot scam involves scammers locating an unoccupied property without any construction and determining the owner, which can be accomplished through publicly accessible information. To appear as the genuine owner of the property, scammers will impersonate the owner and create fake identification documents. Using this guise, the scammers will enlist the help of a real estate agent to sell the property. In many cases, the scammers will not be physically present in the area where the property is located, and they may communicate solely through electronic means such as emails and text messages.

    The scam has become so prevalent, even the Secret Service is warning realtors nationwide to watch out for this scam.

    One realtor from Montana encountered this scam in a most unique way. The realtor also happens to own a vacant lot. Scammers called her office one day looking to sell a lot at a discounted price for a quick sale. When the realtor asked for the caller’s name, the scammer replied with the name of the realtor. That’s one way to tell you’re talking to a scammer.

    If someone was looking to buy a lot, they might consider investing in title insurance, which could protect them from losing money in a phony sale. Buyers should also make sure they’re dealing with the actual owner of the property. See if you can get the records of the property from the county tax office and make sure that the signatures match.

    If someone owns a vacant lot, whether they’re looking to sell or not, can take some precautions to protect their property. Make sure to regularly monitor your property and keep records of any changes or updates to it. This can help you quickly identify if someone is trying to sell or rent your property without your permission. Ensure that your property is properly secured. This can include installing fences, locks, or security cameras to deter trespassers.

     

  • Geebo 8:00 am on April 6, 2023 Permalink | Reply
    Tags: , , , real estate, , ,   

    Family loses $160K to home buying scam 

    By Greg Collier

    Lately, we’ve noticed an uptick in news stories about the business email compromise scam. While this is only anecdotal evidence, it can mean that scammers are getting better at it, or more people are coming forward about it. Either way, it seems we can expect to see increasing incidents of the BEC scam.

    For those who may not be familiar, the BEC scam is a scam that targets businesses and individuals who regularly perform wire transfers or make large payments via email. In this scam, the attackers use social engineering tactics to trick the victim into sending money to a fraudulent account instead of the intended recipient.

    In the context of buying a house, the BEC scam typically involves impersonating a real estate agent, lawyer, or title company representative. The attacker sends an email that appears to be from one of these legitimate sources and instructs the homebuyer to wire transfer the funds for the down payment or closing costs to a specified account. The email may seem convincing and use language that mimics that of the real estate professional, including branding and logos.

    A family from Ohio recently fell victim to this scam while closing on their home after the husband retired from the military. Since they were a military family, they are familiar with the home buying process. However, in Ohio, it’s required by law to wire any closing costs over $10,000, instead of paying by check. They received an email from who they thought was the title company, and followed the included instructions on where to wire the funds. The transfer was for $160,000. It wasn’t until the next day when the family discovered the title company wasn’t the one who requested the transfer.

    The family contacted their bank, and the wire transfer was stopped before going into the scammer’s account, but the bank is allegedly dragging their feet as far as issuing a refund to the family. This isn’t surprising considering the amount of bank scams we’ve seen where the banks refuse to issue refunds.

    The family was still able to close on their home, but not everyone has that luxury.

    To avoid falling victim to a BEC scam when buying a house, it is important to always verify payment instructions before sending any money. This can involve calling the real estate professional or company to confirm that the account details are correct. Additionally, it is wise to be cautious of emails that seem urgent or that request immediate wire transfers without sufficient verification.

     

  • Geebo 8:00 am on March 24, 2023 Permalink | Reply
    Tags: , , , real estate,   

    Forged deed costs man his home 

    Forged deed costs man his home

    By Greg Collier

    Almost two weeks ago, we brought you the story of a man who was conned into signing over to someone who sold the home out from under him. But what if we told you your house could be sold without you even signing anything? That’s precisely what happened to a man in New Orleans.

    Much like the man from our previous story, this man lived in the home with his mother. After she passed away, he started renovating his home. While he was putting money into home improvements, someone forged the deed to his home and sold the man’s house.

    This wasn’t just a simple case of forging one signature to get possession of the home, either. Not only did the scammer forge the homeowners name, but the names of a notary and several witnesses were also forged. Additionally, the notary’s stamp was forged as well.

    One might assume that since both the homeowner and notary attest their signatures were forged, the man would be getting the deed to his home returned. Unfortunately, that is not the case. The homeowner is in the middle of legal proceedings to have the ownership of his home returned to him, and the legal costs to do so are not cheap.

    This kind of title scam could happen anywhere. We wish we could say there was an ironclad way to protect yourself from such a scam, but it depends on where you live. Some of the Parishes in Louisiana have a program where if the Parish receives any documentation bearing the homeowner’s name appears in their offices about their property, the homeowner will receive an email alert about it. Several counties across the U.S. have this service also, but not every county does.

    If you’re concerned about being scammed like this, check to see if your county has a program like this. If they don’t, consider getting in touch with your county and recommend it to them.

     

  • Geebo 8:00 am on March 22, 2023 Permalink | Reply
    Tags: , real estate, ,   

    Home used in rental scam wasn’t even listed 

    By Greg Collier

    Typically, when we discuss a home that’s been used in a rental scam, that home is listed for sale or rent in a legitimate listing before it’s copied by scammers. That gives potential renters an opportunity to see if the home has multiple listings. That’s one of the best indicators that one of the listings is a scam. But what if the property isn’t listed anywhere first?

    That’s what happened to a couple from Tennessee who were getting ready to sell their home. The couple had already moved out, but were putting the finishing touches on their old home before selling it. One day, when they went to some work on the house, they found the locks had been changed and people were living there. The people living in the home thought they had rented the home from someone on Facebook Marketplace.

    The homeowners placed a sign on the property letting people know that the home wasn’t for rent. Even after getting the listing removed from Marketplace, it continued showing up in their listings.

    So, how did the scammer know to target this particular house? The report we read doesn’t say, but it could have been a number of things. It could have been anything from the scammer could have seen the homeowners moving out to the homeowners possibly mentioning their move on social media. Scammers are anything if not resourceful.

    For renters to avoid this scam, there are several steps you can take. Always check with the county’s tax office to find who the true owner of the home is. If the landlord is asking for payment through apps like Venmo or Cash App, they’re probably a scammer.

    As far as homeowners go, if you want to avoid people from being scammed and moving into your property, do what these homeowners did. Put a sign either on the property or in a window inside the home that says the property is not for rent. Also, consider installing some security cameras that you can view through your phone or computer at any time. This way, you can see who is approaching your property and why.

     

  • Geebo 8:00 am on March 21, 2023 Permalink | Reply
    Tags: , , real estate, ,   

    When buying a home, double-check that email 

    When buying a home, double check that email

    By Greg Collier

    The business email compromise scam has become popular with scammers over the past few years because it is extremely profitable for them. It only takes one victim to fall for the scam for the scammers to make hundreds of thousands of dollars.

    There are typically two versions of the BEC scam. The first one targets corporate interests. Scammers send emails to employees or executives in a company, pretending to be a high-ranking official, such as the CEO or CFO. The email will often instruct the recipient to transfer funds or provide sensitive information such as bank account numbers, passwords, or other personal data.

    The other version of the BEC scam is the one we’re interested in today, and it’s where scammers will try to intercept the wire transfer of funds from the home buyer to the seller or the escrow company.

    For example, a man from Stamford, Connecticut, almost lost $426,000 to BEC scammers. The scammers had infiltrated the man’s email exchanges with his realtor, and told him to wire the money to a fraudulent bank account. Luckily, his bank was able to freeze the transfer before the scammers could make off with his money. Unfortunately, not every BEC scam victim can recover their money.

    A similar thing happened to a retired teacher from Colorado. She lost almost $200,000 to BEC scammers while trying to buy a home. At some point, while exchanging emails with the title company, the conversation was hijacked by scammers. The victim was pressured into wiring the closing costs to a scam account. When she went to the title company to close on the home, she was devastated when they told her they never received any payment. The $200,000 was all the money the woman had. Even with the involvement of the Colorado Bureau of Investigation, it’s not certain she’ll recover her money.

    BEC Scams can happen one of two ways. Sometimes the scammer will use an email address that’s similar to the authentic email address. So, when dealing with realtors, banks, and escrow companies, double-check the spelling of the email address before replying. The other way the BEC scam happens is when a company has had their business emails compromised by hackers or malware. In this instance, if the email appears to be legitimate, always double check with a phone call to the party that’s supposedly requesting the payment.

     

  • Geebo 8:00 am on March 13, 2023 Permalink | Reply
    Tags: , , real estate,   

    Elderly man signed away house for $10, now faces eviction 

    By Greg Collier

    As we’re sure you’re aware of, we typically discuss scams on this blog. However, today’s story doesn’t meet the legal requirement of being called a scam, but can still serve as a warning to those who may find themselves in a similar position.

    A 66-year-old man living on the east coast of Florida lost his mother in 2020. He took her passing very hard and got behind on his mortgage payments. With the real estate market being what it is, the bank started to foreclose on the home.

    Not knowing what to do, the man reached out to an acquaintance for help. The acquaintance allegedly told the man that he would take over the mortgage payments while allowing the man to live in his home. The man then signed a deed which transferred ownership to the acquaintance for $10. However, unknown to the man, the deed gave the acquaintance the right to sell the home if he chose to.

    Eventually, the acquaintance did sell the home, stating the home was too much of a headache. The acquaintance sold the house to a real estate investor. The investor flipped the house by selling it to a New York company for $185,000. Meanwhile, the elderly man not only got nothing out of the sale of his home, but was also being evicted from the home he owned for 23 years.

    The man’s neighbors say that the man is mentally challenged and was taken advantage of by all parties involved. Unfortunately, the courts have ruled that everything was legal, and the eviction can move forward. Meanwhile, the man is trying to sell some of his mother’s possessions to make a little money.

    When dealing with any transaction that involves your home, you should have an attorney look over the paperwork before signing anything. If you can’t afford an attorney, some attorneys give free consultations, or you can reach out to a local law school to see if they have a program where students give free legal advice. There are also some non-profits known as legal aid societies that provide legal help to low-income families and individuals.

     

  • Geebo 9:00 am on March 3, 2023 Permalink | Reply
    Tags: , , real estate, ,   

    Scammers try to sell Airbnb homes 

    Scammers try to sell Airbnb homes

    By Greg Collier

    Some say there are numerous problems with short-term rental services like Airbnb. For example, some critics say the homes could be put to better use as family homes than short-term rentals. Especially while the country is in a housing crisis. Others say that Airbnb renters can be disruptive and destructive to residential neighborhoods. There’s also the problem of Airbnb hosts who rent out properties that are either below living standards or are misrepresented in the listing. Now, Airbnb can add one more problem to the list.

    According to a report out of Portland, Oregon, Airbnb hosts have come across a new scam that could put their rental property in jeopardy. Multiple hosts have reported renting their units out to renters who turn out to be scammers. The scammers then pose as real estate agents and hold showings or open houses of the rental property. The properties are being listed on a real estate website that only deals with sales by the homeowners. Scammers are listing the homes at ridiculously low prices and are offering to sell them for cash in hand to only first-time homebuyers.

    One Airbnb host was able to record a scammer showing the property to first-time buyers through a security camera. Where the camera was installed in the Airbnb is unknown.

    If you’re an Airbnb host, it’s recommended you routinely check to make sure the property isn’t being listed for sale on sites like Zillow, Craigslist, and Facebook Marketplace.

    If you’re a first-time homebuyer, try to avoid listings that are well below market value. Also, do plenty of research on the property first before making any payments. While paying for a home in full is the dream of every homeowner, finding a cheap home in good condition is more the exception than the rule. And the odds that you found the exception are very low.

     

  • Geebo 9:00 am on March 2, 2023 Permalink | Reply
    Tags: , , real estate, ,   

    Scammers will sell the land out from under you 

    Scammers will sell the land out from under you

    By Greg Collier

    There are any told number of real estate scams. The most common one has to be the rental scam. This is when scammers will advertise a home for rent even though they don’t own the property. This is done so the scammer can obtain money from their victims in the guise of rent or deposits. The rental scam has led to many families being left homeless after losing the last of their money to the scammer.

    More recently, there has been a new real estate scam that’s making the rounds. It’s not as common as the rental scam, but its victims could still suffer from devastating financial effects. Real estate scammers are now targeting vacant lots. It doesn’t matter whether the lot is for sale or not, scammers will try to sell it as if they own it. This could lead to not only the buyer being swindled out of thousands of dollars, but it could also leave legitimate owners with a nightmare of a legal battle.

    So, how are scammers getting away with this? Not to give them any credit, but they’re really putting in the work on this one. When the scammers find a vacant property with no construction on it, they’ll find out who the owner is. This can be found out through publicly available information. The scammers will steal the identity of the owner and forge identification in the owner’s name. This way, the scammers can list the property for sale with a realtor while appearing to be the owner. Often, the scammers won’t even be in the same area as the lot or the realtor, and will typically communicate through means like emails and text messages.

    There were two reported incidents of this scam happening this week. One happened in New Orleans before the owner was notified by a friend. The other happened in the Washington, DC area, where the buyers realized it was a scam after the seller was unable to answer questions about the property.

    To protect yourself, it’s recommended for buyers to get title insurance. This protects buyers from losing money in a phony sale. For owner’s it’s not so easy. In their case, they have to trust that the local realtors do enough research, so they won’t list a lot for sale that isn’t.

     

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