Beware of These Common Scams
The real estate market can be an exciting place, but it's also a prime target for scammers looking to take advantage of unsuspecting buyers, sellers, and even real estate agents. Recently, two scams have been making the rounds, tricking people into losing money, personal information, and valuable items. Here’s how these schemes work and how you can protect yourself.
The "Oil Rig Buyer" Scam
This scam is a variation of the well-known oil rig romance scam, where fraudsters pose as wealthy professionals working in remote locations. In this case, the scammer pretends to be an affluent buyer looking to purchase a multi-million-dollar home. They often develop a romantic connection with their target, using charm and grand promises to build trust before asking for money or expensive gifts.
Red Flags:
Claims to be an offshore oil rig worker, a military officer on a classified mission, an engineer in a remote location, or even a secret agent.
Avoids speaking with real estate professionals who could verify their identity.
Provides fake or poorly edited financial documents as proof of funds, such as:
A PayPal screenshot instead of a legitimate bank statement.
A bank statement with visible alterations.
Excuses for not providing verifiable documentation.
Requests expensive gifts or financial assistance for fabricated emergencies, including:
iPhones, laptops, or other electronics.
Gift cards or prepaid debit cards.
Cash via Western Union or MoneyGram.
Designer clothing or jewelry.
Uses guilt-tripping tactics when questioned or pressed for verification.
Cancels in-person meetings last minute, citing accidents, financial freezes, or work restrictions.
How to Protect Yourself:
Never send money, gift cards, or electronics to someone you’ve never met in person.
Insist on verified proof of funds from a legitimate financial institution.
Conduct a reverse image search of their profile pictures to check for stolen identities.
Be wary of anyone who avoids video calls or makes excuses for not meeting in person.
If you suspect a scam, report it to the Federal Trade Commission (FTC) or IC3 (Internet Crime Complaint Center).
The "Fake Lawyer" Scam
Unlike the "Oil Rig Buyer" scam, this scheme directly targets buyers, sellers, and real estate agents by impersonating a legitimate legal professional.
How It Works:
The scammer assumes the identity of an inactive or little-known law office to appear credible.
They reach out to buyers, sellers, or agents, claiming to represent a client in a real estate transaction.
Their email signature and online presence seem authentic, using real firm details but fake attorney names.
They execute an overpayment scam by sending money via PayPal, Venmo, or check, then claim they accidentally sent too much and request a refund.
The Catch:
The original payment never clears—if it was a check, it bounces; if it was PayPal or Venmo, it gets reversed.
By the time the victim realizes the fraud, they’ve already refunded the scammer thousands of dollars.
How to Protect Yourself:
Verify any lawyer’s identity by calling their law office directly using official contact information, not the number provided by the scammer.
Never accept overpayments or send refunds to unknown individuals.
If you receive money via PayPal or Venmo, wait until it fully clears in your bank account before taking any action.
Final Thoughts
Scammers are becoming more sophisticated, but their end goal remains the same: to trick people into giving away money or valuable assets. Whether it’s a fake millionaire buyer making grand promises or a fraudulent lawyer orchestrating an overpayment scam, staying informed is your best defense.
If something feels off, trust your instincts. Verify everything, never send money or gifts to strangers, and always work with reputable professionals. If you come across a potential scam, report it to local authorities or the FTC to help prevent others from becoming victims.
Stay vigilant, stay informed, and protect your financial future!
