One in 20 Americans has fallen victim to real estate fraud, with the average amount in consumer losses exceeding $70,000, according to a report.
In CertifID's 2024 State of Wire Fraud report published Tuesday, the firm found that one in 10 Americans has been a target of real estate fraud while one in 20 Americans has been a victim of some type of real estate fraud scheme. On average, fraudsters gained more than $70,000 from stolen buyer's down payments and seller's net proceeds.
In addition, the wire fraud protection company found that 51% of all consumers were not adequately aware of the risks of real estate wire fraud before closing a deal. They also noted that 60% of consumers said their real estate agent, title agency, or attorney provided little to no information about the risks of wire fraud.
While there are many types of wire frauds, CertifID noted that criminals have become increasingly skilled at leveraging public records, breaching broker and title agency systems, and using AI tactics to impersonate real estate professionals in the schemes.
Who Is at Risk of Falling Victim to Wire Fraud?
The CertifID report found an increased risk for individuals aged 65 and older of falling victim to real estate fraud compared to people from other age groups. The same age group was also found to receive inadequate counseling from their real estate agent about wire fraud risks.
It can be noted that individuals aged 65 and older represent the largest segment of buyers who typically pay cash in transactions, per the National Association of Realtors (NAR).
"The real estate industry has a lot of work to do when it comes to educating consumers and putting guardrails in place that protect real estate transactions," Tyler Adams, co-founder and CEO at CertifID, said in a statement. "This report highlights the particularly high risks in real estate transactions which involve multiple parties being impersonated, unsuspecting consumers, large sums of money, and lack of strong protections. It's imperative that the industry comes together on behalf of the consumer, to step up its effort to fight fraud, and to create a safer customer experience."
