A public statement from the FBI, issued on June 16, warns against a prevalent identity theft scheme involving criminals pretending to be the owners of vacant properties to sell them without the real owner's knowledge or consent.
According to authorities, the seller impersonation scam takes place in three phases. In phase one, criminals create fake IDs like driver's licenses and U.S. passports. They gather personal information about property owners from public websites, data brokers, or even through phishing and hacking.
In phase two, they contact realtors and title companies, posing as the property owner, and prepare fake contracts to sell the properties. In one case, they even used a fake deed to convince realtors of the sale's legitimacy.
In phase three, the scammers instruct that the payment for the illegitimate sale goes to an accomplice attorney in another state.
To help spot and avoid the scam, the FBI recommends looking out for unusual communication methods, such as sellers who only communicate through email, text or voice calls without in-person meetings, often citing various excuses for why in-person meetings are not possible or why immediate action is necessary.
Deed holders are also warned to be wary of sellers who pressure for quick sales and offer properties below market value. Other red flags include sellers with limited knowledge about the property or who are missing essential documents, along with unusual payment requests like international wire transfers. Documentation that seems suspicious, such as deeds notarized in foreign countries, should also raise concerns.
To protect themselves against this scam, the FBI recommends homeowners check whether their local office offers notification services for legal documents recorded in they name. They may also review the coverage of their title insurance policy for protection against forgery. When buying a property, it is advised to send a certified letter to the recorded address to verify the seller's authenticity.
Complaints can be filed with the Internet Crime Complaint Center (IC3) at www.ic3.gov.