June 2025
Seller impersonation fraud continues to be an industry-wide problem and a source of complaints against licensees received by the Agency. I wrote on this topic in the
June 2023 issue of the Oregon Real Estate News-Journal. While licensees have taken steps to mitigate this risk, we have seen that some essential steps widely considered best practice continue to be overlooked.
Copying from my previous article, the following scenarios are associated with seller impersonation fraud:
- A seller contacts a listing agent to list a property, often non-owner occupied or vacant land.
- The seller will claim to be out-of-town and needs to conduct the transaction remotely.
- They usually want a quick sale and will ask to list the property far below market value.
- The seller wants a cash offer.
- The preferred mode of contact is email over phone calls, and the fraudster may refuse video calls.
- They insist proceeds are wired only instead of mailing a check.
- They may request to use their own notary.
- They ask that no For Sale sign be posted on the property.
Viewed individually, any of these characteristics may not be red flags. But when several or most apply, the risk becomes more apparent.
So, what are some techniques to prevent the real property owner – and you as a licensee – from getting wrapped up in this fraud?
Commonly missed best practices continue to be:
- Schedule video calls such as Zoom instead of just phone, email, and text. Fraudsters will be less inclined to want to show their face on a call that can be visually recorded.
- If the seller refuses to conduct a video call, claiming technological limitations, be highly suspicious. In order for the escrow office to close the transaction securely in a remote environment, the client will need computer proficiency. In other words, if they are truly not computer savvy, they are unlikely to close the transaction successfully.
- Mail hard copies of listing paperwork to the address listed in tax records. In a recent complaint, the broker claimed to have verified identity by confirming the “seller's" (i.e., fraudster's) home address. However, they simply received verbal confirmation from the seller impersonator. It's easy for a fraudster to look up a mailing address listed publicly on the assessor's website. Had this licensee followed the recommendation to overnight mail a copy of the listing agreement, the real seller would have been alerted quickly that someone was trying to list their home fraudulently. While this is an extra step, it is nominally inconvenient when you are dealing with an unknown, remote-only client in a higher-risk transaction.
An ounce of prevention is worth a pound of cure.
- Attempt to contact the seller directly at an independently researched and verified phone number, and not just the one provided by the listing prospect. This step may be more difficult to employ than those listed above, but it is another tool in your toolbox.
- If you receive a referral from another licensee, confirm they know the person personally. If they do not, it is your responsibility to take the necessary steps to verify that person's identity.
For additional guidance, we have also provided
a link to a resource document provided by the American Land Title Association.
Please note: If the Agency receives a complaint from an affected consumer, failure to follow these industry best practices may result in disciplinary action if an investigation determines that a licensee “engaged in any conduct that is below the standard of care for the practice of professional real estate activity in Oregon as established by the community of individuals engaged in the practice of professional real estate activity in Oregon.” (ORS 696.301(15).
See ORS 696.301 for the full list of Grounds for Discipline.)