Most scams and scammers have two main goals–to steal your money and your identity. You should know what to look for, how they work, and what to do, so you can protect yourself and your finances.
1. Wire Transfer Fraud (Business Email Compromise)
How it works: Scammers hack into a real estate transaction or company email account and monitor communications. When it’s time for closing, they send a fraudulent email, posing as a title company or agent, with new instructions for wiring the down payment or closing funds.
Warning signs: Sudden change in wiring instructions, urgency in email tone, or email addresses that look slightly off (for example, using a slight variation in domain names).
2. Phishing Emails
How it works: Scammers send an email pretending to be a legitimate company or service, asking you to click a link or download an attachment. The link often leads to a fake website that looks real, asking for sensitive information like login credentials.
Warning signs: Emails from unfamiliar senders, suspicious links, poor grammar or spelling, and urgent language asking for immediate action.
3. Client Impersonation Scam
How it works: Scammers impersonate clients (buyers or sellers) and send emails to real estate agents asking for sensitive personal information, financial details, or to change the way payments are handled.
Warning signs: Unusual requests for personal or financial information and requests to change payment methods unexpectedly.
4. Rental Scams
How it works: Scammers pose as landlords or property owners, using real listings or creating fake ones. They collect deposits from would-be tenants for properties they don’t own.
Warning signs: Listings with rents that are too good to be true, a rush to send money to secure a rental, and no proper viewing or meeting the landlord.
5. Urgent Contract or DocuSign Phishing
How it works: You receive an email that appears to be from DocuSign or another document service provider with a subject line like “Urgent: Sign Contract Now.” The link leads to a fake login page that steals your credentials.
Warning signs: Unfamiliar document requests, unexpected emails asking for signatures, and slight variations in the sender’s email address or service provider branding.
6. Fake Invoice Scam
How it works: Scammers send a fake invoice for services or goods, often from what looks like a trusted vendor or contractor. The email requests immediate payment.
Warning signs: Unfamiliar invoices, especially for services you haven’t used, and pressure to pay quickly.
7. Overpayment Scams
How it works: A scammer poses as a buyer and sends a check for more than the asking price, then asks for the difference to be sent back. The check eventually bounces, and the scammer disappears with the money.
Warning signs: Unsolicited offers with overpayment, especially when the buyer insists you wire the difference immediately.
8. Tech Support or Vendor Impersonation
How it works: Scammers pose as tech support or a service provider (such as your CRM provider) and request access to your accounts or devices to “fix” an issue. They use the access to steal data or credentials.
Warning signs: Unsolicited tech support offers, unexpected vendor requests, and requests for remote access to your computer or accounts.
9. Escrow Scam
How it works: Scammers impersonate an escrow company, sending fake documents and asking for payment. They often change contact details to reroute legitimate payments.
Warning signs: Requests to use different payment methods than discussed, mismatched phone numbers or emails from the original escrow company, and last-minute changes to payment instructions.
10. Fake Buyer or Investor Scams
How it works: Scammers pose as potential buyers or investors with impressive offers and then ask for personal or business information under the pretense of “moving forward” with the deal.
Warning signs: Overly enthusiastic or too-good-to-be-true offers, requests for personal or financial information too soon, and refusal to meet in person or provide legitimate references.
11. Gift Card Scam
How it works: Scammers impersonate someone you know (boss, client, or colleague) and request that you purchase gift cards, often for a “client appreciation” or an urgent situation.
Warning signs: Urgent requests for gift card purchases and reluctance to discuss the reason over a phone call.
Tips to Avoid Email Scams:
Verify communication: Always verify wiring instructions, payment details, or sensitive requests by calling a known number, not the one provided in the email.
Use secure methods: Send sensitive information through secure, encrypted channels.
Be cautious with links and attachments: Hover over links to check if they lead to legitimate websites. Avoid downloading attachments from unknown or suspicious emails.
Enable two-factor authentication (2FA): Use 2FA to protect your email accounts and other important online services.
Train staff: Ensure your team knows the signs of phishing and email scams and follows best practices.