We had the for-sale sign in our front yard for just three days when two young women knocked on our door and asked to tour our home. I assumed they didn’t know the protocol for touring a home and told them that they’d need to call our Realtor to set up a time. That’s when they told me that they found our “rental” online and were interested in leasing it.
In 2025, the Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3) reported over 1,008,597 complaints exceeding $20.8 billion in losses.
Over $275 million of those losses came from real estate transactions.
A fraudster had stolen our MLS photos and listed our home as an available rental on a local site—a classic rental fraud scam designed to steal security deposits before disappearing. This experience highlights a scary truth: real estate transactions involve massive sums of money, making them a prime target for sophisticated criminals.
To keep your money and identity safe, here are the most common real estate scams and the steps you can take to outsmart them.
Common Real Estate Scams to Watch For
1. Wire Fraud
Scammers hack email accounts or spoof numbers to send fake wiring instructions right before you close on a home, redirecting your down payment into their own accounts.
2. Title Fraud
A criminal steals your identity, signs your property title over to themselves, takes out a massive mortgage against your home, and disappears with the cash.
3. Mortgage Fraud
Unethical lenders will pressure you to complete paperwork quickly, slip in unexplained charges, or ask you to slightly embellish your financial information on an application. Educate yourself about the usual expenses associated with obtaining a mortgage so you know what to expect.
4. Foreclosure Rescue Scams
Preying on vulnerable homeowners, scammers offer to “save” a home from foreclosure if the owner temporarily signs over the deed. Instead of helping, they strip the home’s equity and leave the owner homeless.
Critical Red Flags to Watch For
If you encounter any of these warning signs, pause the transaction immediately:
- Last-minute changes: Sudden changes to wire instructions right before closing are almost always a scam.
- High-pressure tactics: Demands for immediate action, aggressive language, or unusual phrasing in emails.
- Spoofed contacts: Phone calls or text messages that look official but ask you to verbally share a one-time passcode.
- Overpayment requests: Anyone sending you a check who then demands you wire back the “excess funds.”
Fraud Prevention Checklist
Protect your transaction and your family by implementing these security standards:
- Verify all wire instructions: Never rely on email instructions. Independently find your title company’s phone number, call them yourself, and verbally confirm every single digit.
- Keep both partners informed: Fraudsters often target the spouse who is less involved in the daily transaction details. Keep communication open.
- Upgrade your digital security: Move away from passwords and switch to passkeys. If you must use passwords, test their strength on the Bitwarden Password Strength Tool and use a trusted manager like 1Password or Dashlane.
- Beware of post-closing mail: Once you close, your home purchase becomes public record. You will receive a flurry of junk mail that looks like official, past-due utility bills or urgent home warranty notices. Pause, ignore the pressure, and consult your real estate advisor before paying anyone. Your title company has taken care of your recording with the county and paid for your home warranty at the time of closing.
What to Do If You Are Targeted
If you suspect you have fallen victim to a scam, acting within 72 hours gives you the best chance of recovering your funds.
- Call local law enforcement: File a formal police report immediately in the city where the property is located.
- Report online fraud: Submit a complaint online through the FBI IC3 Platform.
- Flag fraudulent ads: If you spot a fake rental or sales listing, report it directly to the hosting platform to get it removed.
- Monitor your property: If you live in Utah, sign up for the free Salt Lake County Property Watch service to receive instant alerts anytime changes are recorded against your property title.
Real estate transactions are exciting, but they require extreme vigilance. The most important way to protect yourself is to work with trusted professionals who will uphold every standard to safeguard your information. If a piece of mail, an email, or a phone call feels off, don’t hesitate to reach out to your Realtor to verify it.
Niche Homes is a full-service real estate agency specializing in Wasatch Front neighborhoods and enclaves. Contact us if you are interested in buying or selling a home.
