Category: Fraud
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Alert for Veterans: New VA Website Fights Housing Scams
Vets and family members can qualify for certain benefits from the U.S. Department of Veterans Affairs, including home loans. Some swindlers want to steal their glory. Members of the military, and their loved ones, are more likely than other households to become fraud targets. Now, Veterans Affairs officials are confronting the new wave of scams…
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Wire Fraud at Closing. Who’s on the Hook?
Over the past three years, wire fraud in home purchases has gone up sharply. Many victims are turning to court to seek damages after losing much of their life savings to the scammers involved. But who can they go after? The bank? An insurer? The title company? The agent? Some of the players (like banks…
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Say the F Word: Real Estate Agents Need to Warn Us About Fraud
No one wants to fall prey to scam artists. Better guidance from real estate agents would be a big help. After all, a staggering fifth of fraudulent money transfer requests pretend to be coming from real estate professionals. So, why aren’t clients getting stronger warnings?
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Now It’s the Deepfakes. Protect Deeds and Accounts From AI-Generated Imposters
Real estate transactions involve large money transfers. Creative swindlers love those. And now, progress in artificial intelligence (AI) brings new opportunities for real estate fraud. Shady actors are using real people’s voice or image samples to create recordings and persuade buyers and sellers to respond to questions with key information. Then the scammers hijack the…
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“Hustle Culture”: Is This the Trouble With the Housing Market?
Some people are fed up with the “hustlers” of the U.S. real estate market. They criticize celebrity investors such as Grant Cardone, the host of a podcast titled “This Is Not Your Daddy’s Economy,” accusing him of promoting a get-rich-quick philosophy that exposes small investors to extreme risk.but the The hustle mentality in general, they…
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“Unlicensed Appraisal” and Other Stories: How Scam Artists Chase Disaster Victims
After Tropical Storm Hilary blasted the Baja and San Diego regions in mid-August, the Federal Trade Commission urged people to watch for a surge in rip-offs. Opportunists may say they’re performing appraisals, but unless they are licensed appraisers, they lack professional accountability. If they’re improperly doing the work of adjusters, they might be violating state…
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Insurance Fraud: Homeowners Can Be Victims or Perpetrators
Whether it’s a homeowner’s title insurance policy, or a home/condo owner’s policy, no homeowner wants to be involved with apparent fraud. The potential consequences are serious. Although most criminal and real estate laws are established by the states, insurance fraud can implicate federal charges, like wire fraud, mail fraud, forgery, impersonation, and conspiracy. Let’s look…
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$199 Check From “County Deed Records”? Recognize Home Warranty Renewal Scams
Frauds and fakers commonly target homeowners for money. In one of the sleaziest schemes going on at the moment, a home warranty vendor is trying to get homeowners to sign up for its product. What’s worse, the marketing letters don’t look like sales materials. They look like they come from the local recorder of deeds.…
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Pennsylvania Sues Broker for Recording Sneaky Liens on Homes
The Harrisburg office of Attorney General Josh Shapiro recently announced a lawsuit against Amanda Zachman, founder of MV Realty, and the company itself. A.G. Shapiro slammed the company for misleading Pennsylvania homeowners with a so-called Homeowner Benefit Program and recording liens on homes without notice. MV Realty charges an upfront payment in return for getting exclusive listing…
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Notorious Jersey City Mortgage Fraudsters Face Justice
The office of the U.S. Department of Justice in the District of New Jersey recently made an announcement. Its investigation of a New Jersey mortgage fraud scheme is drawing to a successful close. A Jersey City resident concocted a series of crimes. Over the course of the scheme, a trio of collaborators bought properties and…
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Here’s the Lowdown on Mortgage Fraud Today
Mortgage fraud involves a loan approval based on false statements or omissions. It can also involve getting some other kind of improper advantage from a lender through false statements — such as being allowed to make a reduced loan payoff, or make easier payments. Mortgage applicants can commit fraud. So can home sellers. So can…
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Fraud Update: Closing Scams Now Make Up Nearly Half of Cybercrime Losses
What’s a closing scam? Consider the Colorado home buyer who, a few weeks back, opened an email from the title company. It contained precise instructions for wiring the closing money. The amount requested — about $80,000 — matched the amount the title company had already discussed. Everything looked legit. Two days later, the title company…
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Fraud Watch: Real Estate Scams and the Millennial Home Shopper
According to the Federal Trade Commission, tech-savvy folks aged 40 and under are far from immune to scams and frauds. And most scams that hook them begin in an email. And the coronavirus economy is creating even more opportunities for fraud risk. A bogus email can appear to be a message from an ecommerce or business…
