Last week, a member shared that someone contacted them via a prospecting tool online, and asked them to list their land for sale. However, they were not interested in meeting in person to sign a listing agreement and there were other indications that they may not actually be the owner of the land.
Another member report of similar fraud and further research alerted BRR that this is a popular scam occurring across the country.
While it’s not uncommon for agents to help their clients remotely, it is important to verify that potential clients are who they say they are. Verification processes should be consistent with all clients. These prospect intake processes can include tasks such as:
- Have the person fill out a Prospect Identification Form.
- Require photo identification from the prospect and ask for the deed (a title company can also pull this information if needed, which can be checked against the person’s identification).
- Ask the alleged owner specific property questions only they would know (when they purchased the property, the purchase price, etc).
- Send a letter directly to the address. The owner of the property should have mail forwarding set up and should receive the notice. Request that the owner sign and return the letter by email or mail to complete the verification process.
- Request a preliminary title report and compare the information listed on the person’s photo identification.
- Follow additional tips for avoiding wire fraud.
It may not be obvious that it’s a potential scam. The following could be clues that the potential client isn’t who they say they are:
- Misspellings of key information such as names, businesses, and addresses;
- Sudden changes in voice or tone of the messages, especially invoking a sense of urgency
- A change in the next steps or instructions that the customer is supposed to follow
- Unusual attachments or links
Stewart Title has created this information sheet to help educate agents and other industry professionals on the common scam.
There are also safety tools and services available to agents to help them verify a person’s identity. Research tools that fit your business model and trust your instincts when working with new prospects. Protecting yourself and your business are the top priorities.
For more information on safety best practices, visit nar.realtor/safety or boirealtors.com/realtor-safety-resources. If you have a safety concern to share, please email me directly or call us at 208-376-0363. To receive text message alerts from BRR, including safety alerts, please opt-in to text messages here.
Thank you and take care.
NOTE: Please understand the association cannot file a police report on someone’s behalf, cannot run background checks on individuals, nor can we share information about any individual with others, per the advice of legal counsel. We do encourage members to report any suspicious or criminal behavior to local authorities immediately, and to use these alerts as a reminder to assess your personal safety habits and practices.
