Buying a home is one of the most significant financial decisions most people will ever make. It’s exciting—but also stressful—and unfortunately, fraudsters are eager to take advantage of that pressure. With large amounts of money changing hands and sensitive personal information being exchanged, real estate transactions are prime targets for fraud.

At Consumers National Bank, we’re committed to helping you navigate your homebuying journey with confidence and security. This month’s Fraud Friday highlights key types of real estate fraud and the red flags every homebuyer should watch for.

1. Wire Transfer Scams: The Closing Day Trap

How it works:
You’re getting ready to close on your new home. Suddenly, you receive an email from your "real estate agent" or "title company" with updated wiring instructions. You send your down payment—often tens of thousands of dollars—only to discover it went straight into a scammer’s account.

Red Flags to Watch For:

• Last-minute changes to wiring instructions or account details
• Emails with slight misspellings in sender addresses (e.g., @titleco.com vs. @titleeco.com)
• Messages that create urgency or secrecy

Protect Yourself:

• Always verify wiring instructions by calling a trusted contact at your title company using a known phone number—not one provided in an email.
• Never click on links or download attachments from unexpected messages related to your transaction.
• Set up two-step verification on your email accounts to reduce the risk of account takeover.

2. Fake Real Estate Listings: Too Good to Be True

How it works:
Fraudsters post attractive home or rental listings online—often stolen from legitimate sources—and ask for deposits or application fees upfront. In some cases, they claim they’re out of town and pressure you to send money to "hold" the property.

Red Flags to Watch For:

• Listings priced well below market value
• Sellers or landlords who avoid face-to-face meetings or claim to be overseas
• Requests for payment via wire transfer, gift cards, or peer-to-peer payment apps

Protect Yourself:

• Search the property address online to verify that a legitimate agency lists it.
• Never send money before seeing the property in person and signing an official contract.
• Work only with licensed real estate agents and verified property platforms.

3. Shady Mortgage and Loan Offers: When Lenders Aren’t Legit

How it works:
Scammers pose as lenders offering guaranteed loan approval, ultra-low interest rates, or fast funding—often targeting first-time buyers or those with credit challenges. Their real goal? To steal your personal information or charge upfront fees for loans that never materialize.

Red Flags to Watch For:

• Promises of "no credit check" or "guaranteed approval"
• Requests for payment before loan processing
• Pressure to act fast or limited-time offers

Protect Yourself:

• Work with reputable mortgage lenders, such as Consumers National Bank, who are transparent about their rates, terms, and processes.
• Verify the lender’s registration with the Nationwide Multistate Licensing System (NMLS).
• Never pay fees before receiving official loan documents and disclosures.

4. Title and Escrow Fraud: A Hidden Danger

How it works:
In these scams, fraudsters pose as legitimate title or escrow companies and trick buyers into sending payments to fraudulent accounts. They may also manipulate public records to claim ownership or falsely sell homes they don’t own.

Red Flags to Watch For:

• Unfamiliar or unverified companies handling the title or escrow process
• Requests for sensitive documents outside of secure platforms
• Sudden communication gaps followed by urgent requests for funds

Protect Yourself:

• Confirm your title and escrow agents are licensed and reputable.
• Use secure document-sharing platforms provided by your real estate team.
• Regularly check county property records to spot unauthorized activity.

Consumers National Bank is Your Trusted Homebuying Partner

At Consumers National Bank, we know that buying a home should feel like a dream—not a nightmare. Our mortgage team works hand-in-hand with customers to ensure a safe, smooth, and secure lending experience from pre-approval to closing day.

We offer:

• Secure mortgage application platforms
• Trusted local lending experts
• Fraud protection tools to help you monitor and protect your financial accounts

If you're planning to buy a home or are currently in the process, don’t hesitate to reach out to your local Consumers National Bank branch. We're here to help you spot fraud before it finds you.

Final Tips to Stay Safe in Real Estate Transactions:

• Trust your instincts—if something feels off, pause and verify.
• Stay organized—track all communication and documents in one place.
• Partner with trusted professionals—Consumers National Bank is here to guide you every step of the way.

Have questions or concerns about a suspicious transaction?Contact us or stop in to your local Consumers National Bank branch. We’re here to protect your financial future.