Scammers Pose as Landowners, Duping Buyers and Real Estate Agents Alike
In a startling trend that’s shaking the foundations of the real estate market, the Federal Bureau of Investigation (FBI) has issued a critical warning about a sophisticated scam involving the fraudulent sale of vacant properties. This scheme, which has seen a staggering 500% increase over the last four years, is leaving legitimate landowners, buyers, and real estate professionals in legal and financial turmoil.
The Randolph incident
Lisa Shaw, a veteran real estate agent with over two decades of experience in Randolph, New Jersey, found herself unwittingly at the center of one such scam. What seemed like a routine property listing turned into a complex web of international fraud.
“He said he had this piece of property for over 25 years in Randolph, even though he had never been to Randolph,” Shaw told ABC News, recounting her interaction with the supposed property owner. The scammer’s story was compelling: a long-held investment property, a sick wife, and the allure of a hot real estate market.
The anatomy of a scam
The fraudsters’ modus operandi is as sophisticated as it is brazen:
- Identifying targets: Scammers use publicly available property information to pose as legitimate landowners.
- Fabricating documentation: In Shaw’s case, the scammer provided fake Canadian driver’s licenses and a notarized deed purportedly from the U.S. embassy in Vietnam.
- Quick sales: The fraudsters push for rapid transactions to avoid detection.
- Money transfers: Funds are often split and sent to multiple accounts, making recovery difficult.
The aftermath
Jim Dennehy, Assistant Director in Charge of the FBI for New York, highlighted the complex aftermath of these scams:
“It’s probably going to be a whole lot of litigation for many, many months and years to come if that money is already gone,” Dennehy warned. “Technically, you’re no longer the owner of the property, so now it has to get into civil lawsuits, a lot of lawyers [with] a lot of litigation involved in order to try to reclaim what’s yours to begin with.”
Industry on high alert
Real estate industry groups are now sounding the alarm. Emily Bowden, executive officer of the Sussex County Association of REALTORS in New Jersey, emphasized the vulnerability of vacant land:
“Vacant land is very easy to steal because not everybody is going to be checking up on a vacant piece of property once a month,” Bowden cautioned. She advised real estate agents to implement stringent verification processes, including in-person meetings with sellers and thorough property knowledge assessments.
Preventive measures and red flags
The FBI and real estate professionals are urging vigilance:
- Property Owners: Regularly check property records for unauthorized changes.
- Buyers: Conduct thorough due diligence before any transaction.
- Real Estate Agents: Be wary of sellers pushing for quick sales, especially of vacant land.
- Everyone: Report suspicious activity to authorities before money changes hands.
A growing threat
Derek Doernbach, a Jersey Shore real estate agent, reported encountering multiple suspected scammers using identical fake identification, suggesting a potentially organized criminal network.
As this sophisticated fraud continues to evolve, the real estate industry faces a critical challenge in safeguarding property rights and transaction integrity. The FBI’s warning serves as a stark reminder that in the digital age, even something as tangible as land can be stolen with a few keystrokes and forged documents.