Understanding Real Estate Scams with Derek Malcolm

SummaryIn this episode, Allyson Spencer and Derek Malcolm discuss the various scams prevalent in the real estate industry, focusing on wire fraud, seller impersonation, and deed fraud. They explore how these scams operate, the impact on buyers and sellers, and the importance of using secure methods to protect against fraud. The conversation emphasizes the need for vigilance and due diligence in real estate transactions, as well as the role of technology in safeguarding against scams.TakeawaysWire fraud is a $400 million a month problem.Buyers often fall victim due to urgency and lack of verification.Seller impersonation fraud is common with vacant land.Quick claim deeds can be easily forged.Using encrypted systems for communication is crucial.Not all closing firms prioritize security measures.Buyers should verify wiring instructions with their agents.Urgency in emails is a red flag for scams.Notaries must be reputable and approved by underwriters.Due diligence is essential to avoid scams.