There are many reports of agents becoming victim to fake purchaser scams throughout the real estate industry.  A fake purchaser scam involves impostors posing as legitimate buyers to initiate transactions and defraud agents, sellers, or other parties. These scams can be sophisticated and involve overpayment, deepfake impersonation, and fraudulent wire transfer requests.

How the Scam Works

• Fake Buyer Profile

The scammer poses as a serious buyer—often using a foreign name or identity to appear less suspicious.

• Urgent & Overeager Behavior

They may insist on a quick closing, citing reasons such as a tight relocation schedule or a personal emergency.

• Oversharing Personal Details

Scammers often provide unnecessary details (e.g., their profession, family status, or why they want the property) to appear credible.

• Overpayment with Earnest Money

They may send a check that exceeds the required earnest money deposit and request the excess funds be wired back.

• Fake Proof of Funds

They might present counterfeit or stolen proof of funds. Always insist on third-party verification (e.g., bank or financial institution confirmation) rather than screenshots.

• Wire Transfer Request

At some point, the scammer will request that funds be wired—either the excess payment or the full amount—to a fraudulent account.

• Impersonation via Deepfakes

Increasingly, scammers use AI to generate fake video or audio messages that appear to come from real estate professionals, adding a deceptive layer of legitimacy.

How to Protect Yourself

• Be Cautious

While most buyers are legitimate, approach all transactions with care—especially if the buyer is out of, or leaving the country and in a rush.

• Watch for Red Flags

These include misspellings, inconsistent details, poor grammar, and unusual communication (e.g., WhatsApp instead of email).

• Verify All Information

Confirm the buyer’s identity and proof of funds independently. Don’t rely solely on information provided by the buyer.

• Work with a Trusted Escrow Agent

Only handle earnest money and closing funds through a reputable escrow agent who follows strict protocols.

• Avoid Wire Transfers Without a Contract

Never send or receive wire transfers until a contract is fully executed and verified.

• Consult Experts

If anything feels suspicious, consult your broker and a real estate attorney before proceeding.

Conclusion

Staying alert and following proper procedures can help protect against fake purchaser scams. When in doubt, slow down, verify, and seek professional advice.