Why Real Estate is a Prime Target from Scammers
Here’s an excerpt on real estate scams from my forthcoming book and film I Was Scammed. It’s a companion to the book The Big Con that was published by American Leadership book in September featuring the stories of 10 authors who were taken in by a book to film scam with imposter celebrities from real companies so they would pay more for legitimate writing materials and marketing services that went nowhere — just to the imposters with fake emails. The Big Con was recently published by American Leadership Books on Amazon on Kindle and KDP.
Now here’s the excerpt.
Real estate is another prime target for scammers, from scams about phony real estate investments to ghost rentals and purchases, where a victim thinks they are renting or buying a house, only to find out that the scammers didn’t really own the property and are long gone. In effect, there are scams for every phase of the real estate process, and the best way to avoid these scams is to work with reputable, established companies and organizations — and to make sure you are really working them, since sometimes scammers act as imposters.
Today, real estate is “the third most common sector for fraud attempts behind construction and commercial services, according to Susan Black in a Qualia Insights July 21 article: “6 Common Real Estate Scams Targeting Homebuyers and Renters.” Housing scams are prevalent across all aspects of the housing industry, with criminals targeting both renters and owners.”
The amount lost to fraud in this sector alone is staggering. In 2020, over 13,600 victims reported experiencing real estate or rental fraud to the FBI’s Internet Crime Complaint Center, and that’s just the reported fraud, according to a May 20 Bankrate article: “5 Common Real Estate Scams and How to Avoid Them” by David McMillan. And that’s only the fraud reports to the FBI. The Federal Trade Commission (FTC) has received even more reports — more than 3.2 million fraud and scam reports in 2019 resulting in an estimated $1.9 billion in losses, according to a Millioniacesarticle “Trends in Real Estate Investing Scams and Fraud” by Tara Mastroeni. And those are just reports to two federal agencies. A vast number of frauds go unreported, especially by victims who feel embarrassed to let others know they have been a victim and don’t feel they will get back the money lost whatever they do.
A reason for this high level of fraud is that traditional real estate transactions involve emails between those renting or selling a home, real estate agents and brokers, and interested parties which makes them vulnerable to cyberattacks. Additionally, there are records and advertisements that show homes that are available for sale or rent, and any properties in foreclosure. So fraudsters can easily swoop in posing as experts or claiming to offer various services that homeowners or renters might need, such as getting mortgages or loans or moving from one place to another.
I’ll write more about different types of real estate scams in my next article.
* * * * * * * * * *
The author is internationally published author and film producer, Gini Graham Scott, PhD, who has published over 200 books, 50 for traditional publishers and 150 for her own company Changemakers Publishing, specializing in books on self-help, popular business, and social issues. She is the author of The Big Con: Scams Targeting Writers, the Victims, and How to Avoid Becoming a Victim, and she is working on a new book on different types of scams: I Was Scammed. Other recent books include: What Type of Dog Are You? and The New American Middle Ages, published by Waterside Productions. She has written and executive produced 14 feature films and documentaries, featured on the www.changemakersproductionsfilms.com website. She also writes books and scripts for clients. Her website for writing is at www.changemakerspublishingandwriting.com.
For more information or to set up an interview, contact:
Karen Andrews
Executive Assistant to Gini Graham Scott
Changemakers Publishing and Writing
Lafayette, CA 94549 . (925) 385–0608