Real estate scams are on the rise in Georgia

In another case, a man wanted in Gwinnett County was recently arrested for stealing $200,000 from two sets of victims in a real estate scam. The scammer posed as a representative of a law firm to gain their trust, a commonly used method to commit wire fraud. These crimes are taking place every day in Georgia.

Though we hear about scams every day, real estate fraud is not talked about enough considering the exceptionally high dollar amount involved and likelihood of victims losing their life savings. To this point, the real estate sector accounted for $446 million in losses reported to the FBI last year. Moreover, real estate fraud happens more frequently than you’d think with 1 in 20 consumers having the potential to become a fraud victim during a home purchase transaction.

In many wire fraud cases, banking institutions are continuing to argue that they aren’t liable for reimbursing customers because of an exemption in the law. In response, policymakers in Washington, D.C., are urging banks to put consumer protections in place.

Though bank protections can curb fraudulent activity, they are not a silver bullet. It’s important to be proactive and vigilant to avoid being scammed in the first place. Similar to disputing false credit card charges, once the money has been transferred, it could take months or years to retrieve the money and, in cases of real estate transactions, an individual’s life savings. This challenges the integrity of the housing market and only further exacerbates the affordability crisis.

It’s therefore important to exercise heightened vigilance around wire transfers, but scrutinizing the institutions involved in extremely large purchases like real estate is a must. Having an open line of communication with your real estate agent can significantly mitigate the possibility of scams considering the critical role they play in the home buying process. In the case of real estate, 71% of consumers believe it’s the real estate agent’s responsibility to educate buyers and sellers.

Though some policymakers urging banks to take accountability is a positive development, this is not the only solution and cannot be the only action.

Consumers must adopt a lifestyle that prioritizes greater vigilance and Realtors, and lenders must work together to educate consumers. A framework to curb the billions being lost each year will require a societal push to step up and take steps to prevent fraud.

Tom Cronkright is the co-founder and executive chairman of CertifID, a technology platform designed to safeguard electronic payments from fraud. He co-founded the company in response to a wire fraud he experienced and the rising instances of real estate wire fraud. He also is chief executive officer of Sun Title, a Michigan-based title agency.