Scammers can target anyone, even a real estate agent
Mar 23, 2023Marketwise for the Bay Area News Group and its flagships The Mercury News and East Bay Times | Published: February 27, 2023
By Pat Kapowich
Question: My husband, a newly licensed real estate agent, is being scammed. His current client is a homebuyer who wants to move to San Jose. I saw their text message and emails. It isn’t reassuring. The exchanges are about investing in crypto. Each time my husband emailed a new listing to this client, the homebuyer changed the subject back to crypto. What’s more alarming, the homebuyer wants to discuss our retirement plans rather than homes for sale.
How can I persuade my husband to drop this homebuyer? My husband does not see a problem, but I sure do.
Answer: It would be best to stay vigilant — scammers prey on all ages and socioeconomic levels. Try to sell a car online nowadays; most inquiries are from fraudsters or unethical resellers posing as car buyers. When it comes to more lofty financial items such as real estate, it’s a scammer’s paradise. Criminals usually prey on parties to a transaction, such as home sellers, escrow officers and homebuyers. It makes sense that a fraudster or unethical salesperson would eventually target Silicon Valley real estate.
A lot of fraudsters do their homework. This one did not. A newly licensed real estate agent will not be flush with cash. Real estate agents know that the first six months of their careers will be financially sparse. Targeting a new Silicon Valley real estate agent with historic low-housing inventory and record-breaking high Realtor memberships is a fool’s errand. Regardless, don’t be fooled. Your husband must inform the crypto-selling homebuyer to restrict the dialogue to the homebuying process via Gmail. Plus, let the “client” know that after he buys a house, you’ll be happy to have a Zoom meeting to hear about the joys of cryptocurrency.
After finishing my response to your concerns, I found an article online published February 23, 2023. It is a coincidence I won’t soon forget, nor will you:
The Top Scams of 2022 according to the Federal Trade Commission Consumer Advice.
Here are some highlights from 2022:
• Investment scams were huge, with reported losses of $3.8 billion. That’s more than people lost to any other scam, and more than double the loss reported in 2021.
• Impersonator scams were still the most-reported scam, with reported losses of $2.6 billion. The difference this year? Higher losses to business imposters: 2022 losses were $660 million, compared to $453 million in 2021.
• If people paid a scammer, the biggest reported losses were through bank transfers ($1.5 billion reported lost to scams) and cryptocurrency ($1.4 billion reported lost).
• When the scam started on social media, people reported losing the most money overall to scammers ($1.2 billion). But when the scammer called the per-person loss was the highest ($1,400 median loss).
• Younger adults (ages 20-29) reported losing money more often than older adults (ages 70-79). But when older adults did lose money, they lost more than anyone else.
Check out the graphic for the Top 5 Scams of 2022, and read the FTC’s data book for all the details — including what happened in your state.
Questions? Or are you or someone you know navigating life’s transitions? Let lauded negotiator Pat Kapowich make your next move easy. Visit Kapowich’s website for free area housing data, insights and trends. Or put his artful blend of specialized credentials, decades of experience and endorsed skill set to work for you. Kapowich instills confidence when buying, selling, relocating or resizing homes. Do not just make a move — make the best move. Contact him today, Realtor Pat Kapowich, a career-long consumer-protection advocate.
Office: 408-245-7700; SiliconValleyBroker.com
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