Here We Go Again – The Rise of Fake Buyer Schemes in Real Estate!
Here We Go Again – The Rise of Fake Buyer Schemes in Real Estate!
?REALTORS - Here we go again with all of these fake buyer schemes, and unfortunately, they are getting more sophisticated by the day. Luxury real estate is a prime target for fraud, and I’ve seen it firsthand. Fake pre-approval letters, doctored bank statements, and buyers weaving elaborate stories to bypass financial verification—it's happening more than ever.
?The truth is, if you are not thoroughly verifying proof of funds, you are putting yourself and your clients at serious risk. Some of these fake buyers are incredibly convincing, and their documents look legitimate at first glance. But after years in this industry, I’ve learned to spot the red flags—and I won’t make the same mistake twice.
?How to Protect Yourself and Your Clients:
?- Never assume a buyer is qualified based on their story. “I just won a lawsuit,” “I’m signing a huge contract,” or “I’m a Zillow cash buyer” should all be verified.
- A texted photo of a bank statement is NOT proof of funds. Screenshots are easy to manipulate.
- Always get the lender’s direct contact information and CALL and VERIFY the pre-approval. If they hesitate to provide this, there’s a reason.
- Cash buyers must still provide real proof. Legitimate high-net-worth individuals have no problem getting a certified bank statement.
- Most real luxury buyers respect these steps. If someone is pushing back, that’s a red flag in itself.
?Lessons Learned the Hard Way:
?I once got all the way to closing before realizing that everything was fake—the pre-approval, the financials, and even the buyer’s identity. I still don’t know what the end game was, but I do know it was extremely stressful and a complete waste of time.
?How to Spot a Fake Bank Statement:
?- Mismatched logos or outdated branding
- Many round numbers (real statements have random cents)
- Grammar and spelling errors (banks don’t make typos)
- Account numbers that don’t check out
- No physical address for the bank
- Odd statement cycles that don’t align with standard banking timelines
- $25M in a CHECKING account? Yeah..I don't think so!
?We Must Be Proactive
?Fake buyers are getting better at what they do, but so are we. If we continue to demand proper documentation, verify financials, and educate one another, we can protect our clients, our time, and our reputation. All Realtors should adopt this practice—no exceptions.
?If you ever need help verifying a buyer or spotting red flags, reach out. I’ve already dealt with four of these cases this year, and I’m more than happy to help prevent another one.
?Wyatt Poindexter - The Agency Oklahoma