Nowadays, everything we do, especially online, is viewed as a fertile hunting ground to unscrupulous individuals who are relentlessly looking to separate us from our hard-earned money. Reportedly, 1 in 10 Americans, per year, fall victim to the wide-range of fraudster’s tactics. Globally, it is a MULTI-BILLION DOLLAR industry that affects ALL of us, or someone we know, at one time or another.

Detecting and preventing fraud is everyone’s responsibility! Therefore, I would like to do my part in enlightening those reading my BLOG to some of the scammer’s methods of compromise. Within the real estate industry, con artists see it as a prime opportunity to engage their art for deception from rental scams to wire fraud to loan modification scams and much more …

After recently attending a continuing education course at the Hernando County Association of REALTORS, I wanted to share the following advice in an effort to help you from becoming a target:

Rental Scam – Searching and procuring home rentals online, without the involvement of a professional rental agency, puts you at risk. This scam revolves around phony application fees and collection of deposit money to secure a rental. Prospective tenants then later discover that the rental was not for rent nor was the person “acting as the owner”, the actual homeowner.

• Do not send payment to anyone you have not met in person.
• Do not rent anything sight-unseen – that amazing “deal” may not exist.
• Refuse background/credit checks until you have met the landlord in person.
• Be wary of long distance landlords who claim to be missionaries, military personnel stationed overseas or employed by the United Nations.

Wire Transfer Fraud – This form of fraud occurs when wire transfer instructions are unknowingly altered, causing the funds to be diverted from the intended recipient to another account. An FBI Public Service Announcement in 2015, advised businesses of the increasing prevalence of Business Email Compromise (BEC) schemes. FBI data indicates a 270% increase in known victims since January 2015. Nationally, reported exposed losses exceeds $748 million since October 2013.

• Fraudster’s tactics are carried out by compromising legitimate email business accounts via computer intrusion, phishing (fraudulent practice of sending emails purporting to be from reputable companies to induce individuals to reveal personal information such as passwords and credit card numbers) or social engineering (the art of manipulating people to give up confidential information).
• Title companies, mortgage companies, attorneys, real estate agents, buyers and sellers, in the midst of a real estate transaction, are all seen as prime opportunities to perpetrators.
• How it works – Perps send an email to a compromised email account holder (using an email address that is very similar to a settlement agent’s email address) indicating that a “wiring change” has taken place and provides the revised wire instructions. Unknowingly, the unsuspecting party complies and wires the funds to a “staged bank account”, with very little chance of the funds being recovered.
• Our Broker’s office policy strictly prohibits agents to communicate wire instructions between parties. Parties in need of completing a wire transfer in a transaction, are instructed to communicate directly with the settlement agent to obtain proper wiring instructions.

Loan Modification Scam – A fake company, pretending to be a government affiliated housing agency, swindles unsuspecting homeowners out of thousands of dollars by promising modification of their mortgage. The homeowner provides cash for “processing fees” and the scammer walks away with the homeowner’s money.

We hope you found this post to be helpful, informative and interesting … Watch for our next BLOG POST on February 9th.

To learn more about Tampa Bay area homes for sale in Spring Hill and Brooksville, located in Hernando County, Florida, explore our state-of-the-art, MLS Map Search Feature. Our MLS Map Search Feature makes it easy for BUYERS to search and find MLS listings and for SELLERS to find out what the competition is doing! And, for even more valuable BUYER and SELLER resources, visit www.GailSellsFloridaHomes.com today!

Until then… it’s all about YOU!