Numerous forms of cybercrime remain unabated, but the U.S. Secret Service has spotted what looks to be a new cryptocurrency scam targeting real estate professionals. Cybercrime types have become so prevalent you could almost call them the “crime of the week.”
According to a bulletin from the National Association of Realtors (NAR), this particular scheme works like this:
- A fraudster posing as wealthy all-cash homebuyer engages a realty agent to develop a relationship;
- Over the course of their relationship, the fake buyer lies about becoming rich through cryptocurrency; and
- The fake buyer invites the agent to check out a crypto investment website that looks legitimate.
It’s a variation of what’s known as a “pig butchering” scam where the victim is “fattened up” before taking the bait. The agent makes a small, tryout investment, sees a large return and is allowed to withdraw his or her profit.
The agent then invests more money, sometimes their entire retirement nest egg, only to lose it all.
“These scams are highly organized, often run by overseas criminal networks,” says Will Looney of CertifID, a fraud prevention company. “And because real estate professionals are used to building quick trust with new contacts, they’ve become a prime target.”
Unlike most scams, this one isn’t quick-hitting. Rather, it’s a “long con” style of scam.
The thief tries to build rapport over weeks at a time, and then — as noted — casually mentions how they made their fortune and invites the agent to check out the investment platform they used to get rich. The site looks real, and the crypto investment appears to be legitimate.
“The agent makes a small test investment, sees an impressive return, and is even allowed to withdraw their profit,” says Looney. “Then they invest more. Sometimes everything.”
“That’s when the platform goes dark,” he says.
The Federal Bureau of Investigation (FBI) warns all real estate professionals — including not just realty agents but lenders, attorneys, and title agents — to beware of out-of-the-blue emails or texts that quickly turn personal, as well as anyone urging you to join a trading platform or move the conversation off-platform.
“Never respond to unsolicited texts, social media messages, or emails soliciting an investment,” according to the FBI.
The FBI also says real estate professionals should learn to recognize these red flags:
- Attempts to quickly develop a relationship;
- A client making an impression of wealth and investment knowledge, promising fast and high returns; and
- Creating urgency to make a quick decision and declining in-person interactions.
If you spot such a scam, you should immediately report it to the Internet Crime Complaint Center (IC3) at www.ic3.gov and local law enforcement.
