Real Estate Fraud: A Resource Worth Bookmarking
NAR’s new fraud prevention resource helps you spot warning signs and find your next steps.
Your client receives new wiring instructions just before closing. A seller won’t verify their identity. An urgent email asks for sensitive information.
When something seems off, knowing what to check and who to contact matters.
The National Association of REALTORS® has launched Protecting Your Clients and Your Business From Fraud, a resource that brings prevention tips, common red flags and reporting guidance together in one place. Organized around three actions, prevent, detect and report, it’s designed to help agents and brokers navigate potential scams throughout a transaction.
Know What to Watch For
Fraud isn’t always easy to recognize, especially when scammers impersonate someone involved in the transaction. Warning signs include:
- Unexpected changes to wiring or payment instructions.
- A seller who avoids identity verification.
- Names or details that don’t match across documents.
- Email addresses that differ slightly from legitimate ones.
- Pressure to send money or share information immediately.
NAR’s resource lets you browse by transaction stage and find guidance for the situation you’re facing, including what a red flag might mean, what to do and who to contact.
Make Verification Part of the Process
Talk with clients early about how you’ll communicate and how they should verify requests involving money or personal information.
AI can make impersonation more convincing, so a familiar voice, phone number or email address isn’t proof of identity. Before acting, verify the request through a trusted contact method obtained independently of the message in question.
For brokers, the site also offers guidance on training agents and staff and creating a written fraud-response plan.
Be Ready to Respond
If fraud is suspected, act quickly. NAR’s reporting section explains who to notify and what information to preserve. If funds have already been sent, contacting the sending financial institution immediately is a critical first step.
Explore the resource now, share it with your team and keep it handy for the moments when something doesn’t add up.