Imagine wiring thousands of dollars for your dream home—only to realize it was all a scam. Sadly, buying or selling a home can make you a target for real estate fraud. I’ve seen it happen, and it is devastating. Washington state ranks 10th in the nation for cybercrime schemes, with total fraud losses reaching $290 million. The good news is that with the right knowledge and precautions, you can protect yourself and avoid becoming a victim of cybercriminals.
General Principles for Safe Transactions
The MOST IMPORTANT Rule:
How to Spot Fraud:
Scammers often use pressure tactics to rush you into a decision, preventing you from taking the time to think and verify. Be wary of deals that seem too good to be true. Trust your gut – if something feels off, don’t hesitate to ask questions. And if you receive a message from someone you know, but you are unsure of its legitimacy, contact them via another channel (phone call, email, etc.) to verify.
Look out for these common signs of fraud:
- Typos or grammatical mistakes, misspellings, and awkward phrasing that seems out of place
- Asking you to tap on a link, activate a new feature through a link, communicate on WhatsApp, or download another mobile app
- Asking you to share your personal information, like credit card or bank account numbers, birth date, or passwords
- Asking you for a two-step authentication code, which scammers can use to take control of your account
- Asking you to forward a message
- Asking for money upfront or claiming that you have to pay unusual fees
- The scammer pretends they’re someone you know
- The message is about an investment account, loan, lottery, gambling, or a job
- The person starts chatting with you to gain your trust before asking for personal information.
Choose Your Team Wisely
A reputable real estate broker, lender, title officer, and escrow agent should all work together to protect your investment and take proactive steps help you avoid fraud. This can include notorization and verification of identity, secure delivery of wire transfer information and sensitive data, and important property research. Note: This is just one reason that a title report is essential to review, especially when legal property ownership might be in question. The loan process can be especially complex, and I partner closely with lenders to help you navigate it.
Vacant Homes and Land: Additional Risks
Vacant homeowners and land owners in Kitsap County should always have someone keeping an eye on the property, physically. This helps avoid squatters, unnoticed property damage, illegal dumping of trash, timber trespass, encroachments (like fences or structures built onto your property) and adverse possession (claims over part of your land). But you also need to keep an eye out for legal and financial trouble.
Vacant Homes
Buyers, and even neighbors, should be aware that vacant homes can be targeted by fraudsters who list these properties for rent without the owner’s knowledge. They might even break in to show the property to unsuspecting tenants. The scammer collects security deposits and rent, then disappears, leaving the would-be renters in a lurch. To avoid this, always take steps to verify that you’re dealing with the legitimate property owner.
Vacant Land
If you own vacant land in Kitsap County, it’s critical to be aware of “seller imposter” fraud. This is when someone forges your identity documents and convinces a real estate agent to list your land for sale. It might sound unbelievable, but it does happen! If the fraud isn’t detected during escrow, the buyer could complete the purchase, sending funds to the scammer, and the county records could even be updated to reflect the new (fraudulent) owner. Real estate scams are becoming more elaborate. I’ve alerted a few different property owners that someone is attempting to impersonate them to commit a fraudulent sale. Unfortunately, Kitsap County has no mechanism to “freeze” a property or alert the true owners when sale inquiries are happening.
Monitoring Your Property: How Listing Alerts Can Help
Whether you own vacant land or an unoccupied home, I highly recommend setting up property alerts for new sale/rental listings in your area. This is a crucial step to protect yourself. Property alerts provide an early warning system and have the added benefit of keeping you informed about market activity in your area. I can help you set this up easily!
Good Data Security Habits
Prevention is the best way to avoid identify theft or fraud. Here are some practical ways to help protect your money:
Communication: You should generally avoid scanning and emailing, texting, or sharing sensitive information like bank statements, bank account numbers, or a social security number — at least not without strong password encryption or the use of a secure document portal. (Tip: When using password encryption, it’s best to send the recipient the password using a different communication method, like a text or phone call.) Also, be cautious about the information you share on social media, as this can potentially be used by identity thieves.
Redaction: When clients provide me sensitive documents to scan or email, I always redact account numbers and sensitive data using professional redaction software, like Adobe Acrobat Pro. Alternatively, you can use a thick Sharpie pen to manually redact sensitive information on paper; but be sure you can’t see the text through the dried ink. I also double-delete any email messages containing sensitive documents that haven’t been redacted, just in case my email account ever got compromised. Hard copies should be shredded rather than thrown in a trash can.
Password Protection: Choose strong passwords that are a mix of letters and numbers or special characters. Avoid using your name, birthday, or common words or number strings that someone could guess. Create strong, unique passwords for all your online accounts and change them regularly.
Monitor your credit and bank statements: Regularly check your credit reports for any unauthorized activity or suspicious accounts. Regularly review your bank and credit card statements for any unauthorized charges or suspicious activity. Set up alerts for your bank and credit card accounts to be notified of any unusual activity. Pay attention to any regularly mailed statements you might be missing.
File Storage, Devices, and Sharing: Store documents containing personal information like Social Security cards, birth certificates, and bank statements in a secure location. It’s common to use cloud-based folders like Google Drive to share and store electronic copies of documents; always check the folder sharing settings to ensure the links can’t be opened by unauthorized users. Keep your devices, including computers and smartphones, secure and updated with the latest security patches and anti-virus software.
If You Suspect Fraud: Take Action Immediately
If you think you may have been targeted by a scammer, time is of the essence! Here’s what to do:
- Contact your bank immediately and request that they contact the recipient of the wire transfer.
- Notify your real estate agent and title officer, who will immediately take action.
- Report the crime to the Seattle FBI field office at (206) 622-0460.
- File a complaint with the FBI’s Internet Crime Complaint Center (IC3) at www.ic3.gov.
- Contact local law enforcement and file a police report.
- Document all interactions with the scammer for your records.
Protect Your Investment While Securing Your Future
Protecting yourself from fraud in Kitsap County requires vigilance. By understanding the risks and taking the necessary precautions, you can navigate the real estate market with confidence. I’m committed to providing you with the guidance and support you need for a safe and successful transaction. I work with highly experienced and trustworthy lenders, title officers, and escrow agents. Please reach out to me for more guidance on how you can protect yourself. And share this information with anyone you know who might benefit.