Alert neighbor thwarts Las Cruces listing scam
When Las Cruces real estate broker Nora Stone received an online request to list a 2.4-acre homesite in the Soledad Canyon area of the city, she had no idea she was communicating with a scammer and not the owner of the property. Little did she know the “lead”, which was transmitted to her through the Realtor.com website, was the first step in a plan to impersonate the owner and steal the proceeds of the sale.
What the scammer didn’t count on was that a relative of the true owner lived next door to the lot. The scam quickly ended when, within hours of the installation of the for-sale sign on the $150,000 property, the attempted cybercrime was uncovered, and the listing was cancelled. Following the discovery, the scammer’s email and phone numbers were immediately disconnected.
Online cybercrimes involving vacant land properties are more commonplace than most people imagine. A New Mexico attorney familiar with real estate and title issues noted that at least three other attempts to scam Southern New Mexico property owners have been made within the past 60-days. In one of the instances, the “owner” said he lived in an African country and could only communicate electronically. Forged documents ostensibly notarized by the American Consulate’s office in the country were submitted as proof of identity. Had it not been for a last-minute request from the “owner” to redirect the sale proceeds to an account in Vietnam, the $50,000 theft would have succeeded.
The problem is so pervasive, the U.S. Secret Service Cybercrime Division recently issued a bulletin outlining how the schemes work:
The criminal researches public records to identify real estate that is free of mortgage or other liens and the identity of the property owner. These often include vacant lots or rental properties.
The criminal poses as the property owner and contacts a real estate agent to list the targeted property for sale, and requests it be listed below current market value to generate immediate interest.
The criminal, posing as the property owner, refuses to sign the closing documents in person, and requests a remote notary signing.
The criminal (or coconspirator) also impersonates the notary and provides falsified documents to the title company or closing attorney.
The title company or closing attorney unwittingly transfers the closing proceeds to the criminal.
All communications are electronic, not in person
If you are a property owner whose property is the target of a successful cyber-scammer, it may be years before you learn the deed to the property is no longer in your name. In the end, it is the responsibility of the title insurance company which issued a Policy of Title Insurance in connection with the sale, to make you whole.
In law enforcement circles, the schemes are referred to as Business Email Compromise (BEC). The FBI 2022 Congressional Report on BEC and Real Estate Wire Fraud cites BEC as the leading source of victim loss reported to their Internet Crime Complaint Center (IC3), totaling $2.4 billion in 2021.
See you at closing!
Gary Sandler is a full-time Realtor and president of Gary Sandler Inc., Realtors in Las Cruces, NM. He loves to answer questions and can be reached at 575-642-2292 or Gary@GarySandler.com.
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This article originally appeared on Las Cruces Sun-News: Alert neighbor thwarts Las Cruces listing scam
