Welcome to the last post in our four-part October blog series. In Part 1, we took a bird’s-eye view of why paying attention to real estate fraud and scams is so essential; then, in Part 2, we zoomed in on some common scams faced by buyers; and last week, in Part 3, we looked at several fraud efforts that seek to dupe sellers as well as REALTORS.

This week, in Part 4, we provide a few final warnings, tips, and ideas aimed at equipping all of us to be better protected from the fraud and scam attempts that can cause financial loss, emotional stress, and legal entanglements. Some of these are common sense and might seem basic, but just as “blocking and tackling” are essential to practice in football even at the elite level, so the most seasoned real estate professionals make a point of staying sharp in the foundational aspects of the business.

For REALTORS:

• Always verify the identity of clients and third-party contacts. Ways to do this include reviewing government-issued identification and confirming proof of address. Advanced methods include digital-identity verification tools that use facial recognition, biometric authentication, and screening against watchlists to confirm a person is who they claim to be. Notaries public also play a critical role by witnessing signatures and verifying documents in person.
• Confirm property ownership via public records before listing or proceeding. It’s always safe to cross-reference IDs with property documents.
• Use secure, encrypted communication channels. These typically rely on specialized business software, as consumer apps can pose privacy and compliance risks. The best options combine end-to-end encryption with features like access controls, data residency, and audit trails to protect sensitive client and transaction data.
• Educate clients on common red flags, such as last-minute wiring instructions or unverified listings. Scammers often try to play on that urgency that clients might feel as a closing date approaches, making them susceptible to slickly nefarious schemes.

For Buyers and Sellers:

• Work with licensed, reputable REALTORS who prioritize security. EMTAR members are sworn to adhere to the strict, robust NAR REALTOR Code of Ethics that prioritizes the needs of their clients while upholding the highest standards of professional excellence. Go here to search for a local REALTOR.
• Confirm all instructions and details throughout a transaction via trusted sources—never rely solely on email or phone requests. In-person, phone, video conference, and secure software systems help to make this possible.
• Be cautious of listings that seem too good to be true or pressure you into quick decisions. As we covered earlier in this blog series, scammers often post fake listings to lure unsuspecting “buyers” into a fraudulent trap.
• Use secure methods for transferring funds, and verify wiring instructions independently. See Part 3 in this series for more thoughts on avoiding wire fraud.

Resources and Reporting:

• You’ve no doubt heard the saying, “If you see something, say something.” This applies to many areas of life, and it is just as critical in real estate. If you suspect a scam, report it immediately to local authorities, the FBI’s Internet Crime Complaint Center (IC3), or to EMTAR.
• As an added layer of safeguarding, it’s wise to keep detailed records of all communications and transactions. The more you document, the better the chances of ensuring that all aspects of the sale or purchase transaction are being handled in a safe, secure manner.

Vigilance Is Your Best Defense

By staying vigilant and educated, REALTORS and clients can vastly reduce the risk of falling victim to these scams. Awareness is more than just a good defense; it’s an even better offense. Be proactive, keeping an eye out and an ear perked for news about the latest slick attempts to defraud. It is always smart to remain on alert for the latest ways baddies out there are trying to cheat their way to ill-gotten gains.

EMTAR: Committed to Help You Avoid Scams & Fraud

As a final note in this four-part series, we remind you that it is so important to shine light on some of today’s most prevalent and potentially damaging real estate scams, so that sellers, buyers, and REALTORS are aware and able to identify and prevent them.

Our dedication in this area is just one of many aspects of EMTAR’s unwavering commitment to serve alongside our members as “your partner in success,” providing resources and tools aimed at increasing awareness of key aspects of the real estate transaction process. 

Thank you for reading this blog series. Please feel free to share the links with others in your network to help your fellow REALTORS stay vigilant and prepared in the face of potential threats to your clients and their pursuit of a property sale or purchase. 

About EMTAR: Chartered in 1969, our Association’s 1,200+ REALTORS® are a proud part of the 36,000+ members of Tennessee REALTORS® and of the 1.5 million+ members of NAR, all working to serve the public and protect the rights of America’s property owners. EMTAR members are known not only for their unmatched real estate excellence and high ethical standards, but also for being generous, hospitable, others-focused, loyal, hardworking, and eager to help wherever and whenever help is needed.