Protect Yourself from Seller Impersonation Fraud
At Sun National Title Company in Lake Wales, FL, we prioritize safeguarding your real estate transactions. In today’s digital age, one of the growing threats in the real estate market is seller impersonation fraud. Understanding this risk and knowing how to protect yourself is crucial. Here’s what you need to know about this alarming scam and how Sun National Title Company can help you avoid it.
What is Seller Impersonation Fraud?
Seller impersonation fraud occurs when a scammer pretends to be a legitimate property seller. These fraudsters may hack into email accounts or create fake profiles to deceive buyers and real estate professionals. Their goal is to redirect funds intended for the real property sale into their own accounts, leaving the actual seller and buyer in a vulnerable position.
How Does It Work?
The fraudster searches public records to identify property that is free and clear of a mortgage loan or other liens, mainly targeting vacant land and rental properties owned by foreigners or the elderly.
The fraudster then poses as the property owner and uses an internet request, email or text message to hire a real estate agent. The property is generally listed below market value with a request for an all-cash buyer and a quick closing.
When it comes to scheduling a signing appointment, the fraudster offers an excuse for not being able to sign documents in-person and requests to use a mobile notary. Then, impersonating the notary as well (or with the help of a co-conspirator), the fraudster delivers falsified documents to the title company or closing attorney. Once the transaction closes, the buyer’s funds are unknowingly wired to the fraudster’s bank account. The discrepancy in ownership is often not discovered until documents are recorded with the county clerk’s office, or months or years after the transaction has closed.
Red Flags to Watch For
Communication is strictly via email or text. The seller uses a multitude of excuses not to have an in-person meeting or video chat.
The seller has no documentary evidence linking them to the property.
The seller provides a different address than the property address or tax mailing address.
The seller wants to list the property below market value and to only accept offers from all-cash buyers.
The seller advises the real estate agent not to post a “For Sale” sign on the property.
Persistence about a quick closing, even willing to offer incentives or cut corners to close sooner.
Demands to use their own notary (to provide falsified documents to the title company or closing attorney).
How Sun National Title Company Can Help
At Sun National Title Company, we are committed to ensuring that your real estate transactions are secure and smooth. Here’s how we help protect you from fraud:
- Secure Communication Channels: We use encrypted and secure communication channels to ensure that all information exchanged is protected from unauthorized access.
- Verification Procedures: Our team follows stringent verification procedures to confirm the authenticity of all parties involved in the transaction.
- Education and Awareness: We provide ongoing education and updates about the latest fraud schemes to keep you informed and prepared.
What to Do if You Suspect Fraud
If you suspect that you are a victim of seller impersonation fraud, it is vital to act fast! File a fraud report with local and state law enforcement, the Federal Trade Commission at www.ftc.gov and the Federal Bureau of Investigation (FBI)’s Internet Crime Complaint Center at www.ic3.gov.
Stay Safe with Sun National Title Company
Your peace of mind is our priority. By staying informed and working with a trusted title company like Sun National Title Company, you can significantly reduce the risk of falling victim to seller impersonation fraud. For more information or assistance with your real estate transactions, contact us today.
Sun National Title Company
Location: 299 Suart Ave E. Lake Wales FL
Phone: 863-733-0224
Email: lakewales@closewithsun.com
Website:titlecompanylakewales.com
Together, we can ensure a secure and successful real estate experience.
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