It’s time to talk about that ‘fake seller’ scam again!

Summer is a great time in real estate. Listings move fast, buyers are motivated and closings stack up on the calendar. All of this is good news, but the speed and urgency of the season can also create opportunities for fraudsters.

After all, cybercriminals never take summer vacation! That’s why this recent article on seller impersonation fraud from the National Association of REALTORS® caught our eye. When we clicked it, we noticed it featured the same person we highlighted in a blog on this topic last year: an Iowa Realtor named Adam Pretorius.          

Last year, that TRN blog explained what seller impersonation fraud was and warned that it was becoming one of the most common threats in real estate. We talked about the basics: scammers comb public records for vacant lots, second homes and other properties that may be easier to target, then pose as the owner to push for a fast, often cash-only sale. Unfortunately, that warning has only grown more relevant.

What is seller impersonation fraud?

It’s exactly what it sounds like, for starters. This scam happens when a criminal poses as the owner of a property — often a vacant lot, second home, farmland or mortgage-free property — and attempts to sell it without the real owner’s knowledge. These fraudulent listings are happening in markets across the country, and the people behind them are banking on you being too distracted by the pace of the summer market to notice.

For those who don’t remember what happened to Pretorius, here’s a quick recap. He thought he had a solid and easy listing: a vacant infill lot in a desirable neighborhood, a motivated out-of-town seller and a quick close on the horizon. However, just hours after the property hit the market, Pretorius got a call from the actual owner. Shockingly, he learned that scammers had listed the same lot multiple times before.  

That story is worth repeating because it makes one thing clear: fraudsters do their homework. They learn accurate property details, use convincing communication and create urgency to keep everyone focused on the deal rather than the warning signs.

The most recent NAR article didn’t focus solely on Pretorius’ experience. It also praised the president of a Maryland title company for thwarting a fake seller after the bank flagged a mismatched name. As we’ve heard from our settlement and abstracting colleagues across the company, the title company is often the last line of defense against this kind of scam. That’s a responsibility we take seriously, and the TRN team knows staying ahead of these fraudsters is a team effort.

So, how can you protect your listings? We’re glad you asked! The message we hear repeatedly is that everyone in real estate must remain vigilant and implement prevention efforts in every step of the transaction.

Here are a few ways we can all do that:

• Slow down, even when it’s hard. Never sacrifice due diligence, especially if a lead comes out of nowhere or the “seller” is pushing for speed or asking you to cut corners.

• Give vacant land transactions extra scrutiny. Like many title companies are advising these days, consider the transaction fraudulent until proven otherwise.

• Ask unexpected questions. Don’t be afraid to verify a seller's identity with questions only a true owner could answer, like details about their neighbors, which can quickly expose an impostor.

• Act fast if something feels off. If fraud is caught early, there's a much better chance of recovering wired funds.

• Speak up. Keep talking about this issue with anyone who will listen and report suspicious activity to the proper authorities. As Pretorius’ story shows, scammers will keep trying until they find a willing mark.

For The Title Resource Network team, protecting clients and partners from fraud is a year-round priority. If you have questions about how we verify transactions and safeguard closings, reach out to your local office. We’re here to ensure every deal closes as quickly and securely as possible.

How much will we talk about wire fraud and other scams like seller impersonation? As much as it takes to make a difference. Put it this way: as long as people like Pretorius keep telling their stories, we’ll keep amplifying them!