Be Careful!!! Real Estate Fraud is Lurking: This month Attorneys’ Title Fund Services, LLC put out an advisory with regard to fraudsters perpetrating fraudulent escrow deposit scams. Apparently, these fraudsters are approaching Realtors and Real Estate Agents under the premise of purchasing real estate. In turn, the Realtors turn to attorneys and escrow agents to process the earnest money deposit. The fraudsters are issuing fraudulent cashier’s check. When the Escrow Agent deposits the funds, they are informed that the transaction is cancelled and a refund must be issued. After the Escrow Agent successfully transfers the funds, they are then notified, by their Bank that the fraudulent cashier’s check was found to be invalid.
This is just one example of the many fraudulent transactions that are being perpetrated in our industry today. We need to be vigilant about all proposed transactions that seem unusual and do not pass the standards of our practice. In today’s environment, many of you in the industry struggle to find deals and make deals happen, but unfortunately, it fosters the type of environment that fraudsters find inviting. Be careful and be safe. If any situation triggers a flag in your mind, there probably is cause for concern.