Key takeaways
- Almost every by-owner scam ends with a request for money that can't be recovered: wires, gift cards, crypto, or a refund of an overpayment.
- A check that has cleared can still be fake; banks make funds available within days, but a counterfeit can take weeks to surface, and you repay the bank.
- Verify wiring instructions by calling a number you already know, never one from an email, because closing wire fraud is one of the costliest real estate scams.
- Owners of vacant land and paid-off homes are prime targets for seller impersonation and deed fraud; monitor your county records.
- Report fraud quickly to your bank, the FTC at ReportFraud.ftc.gov, and the FBI at IC3.gov; speed matters for any chance of recovery.
This guide is for anyone buying, selling, or renting directly from an owner: homes, land, vehicles, or a business. After reading it, you’ll recognize the scams that target private deals, know the exact checks to run before money moves, and know where to report fraud if it happens to you.
Why by-owner deals attract scammers
Private deals skip the middlemen, and that’s what saves you money. It also removes some of the people whose job is to catch fraud. Scammers know that listings are public, that sellers want to move fast, and that many first-timers don’t know what normal looks like.
The losses are large and growing. People reported losing $15.9 billion to fraud in 2025, according to FTC testimony to Congress, up from $12.5 billion in 2024. Real estate fraud complaints to the FBI’s Internet Crime Complaint Center rose to 12,368 in 2025, with $275 million in reported losses, according to the bureau’s annual figures as reported by the National Association of Realtors.
The good news: nearly every scam below depends on the same few moves. Learn them once and you’ll spot most variations.
Rental listing scams
Rental scams hit both renters and the owners whose homes get used as bait.
How it works: A scammer copies a real listing, often with the actual photos, swaps in their own contact information, and lowers the rent. Sometimes the listing is for a home that’s for sale, not for rent, or a unit that doesn’t exist. They claim to be out of town, can’t show the place, and ask for an application fee, deposit, or first month’s rent by wire, gift card, cryptocurrency, or a payment app.
If you’re renting: The FTC says not to pay anyone before you’ve seen the unit in person or had someone you trust see it for you, and not to sign a lease you haven’t reviewed. Search the address and the listing text; if the same home appears under a different name or price, walk away.
If you’re an owner-landlord: Search your own address periodically after you list. Put a line in your listing telling applicants you will always show the home in person and never request payment by wire or gift card. If you find a hijacked copy, report it to the site where it appears and to the FTC.
Overpayment and fake check scams
This scam works on landlords, home sellers, car sellers, and anyone selling equipment or inventory.
How it works: The “buyer” or “tenant” sends a cashier’s check, business check, or money order for more than the agreed amount, then asks you to send back the difference, often for movers or a shipper. The FTC explains why it works: banks generally must make deposited funds available within a couple of days, but uncovering a fake check can take weeks. When the bank discovers it, it reverses the full deposit, and you owe whatever you sent.
How to beat it: Never accept a payment for more than the price, and never refund an overpayment, no matter how plausible the story. For large payments, go with the payer to their bank and watch the check get issued, or wait until your own bank confirms the funds are collected, not just available.
Wire fraud at real estate closings
Real estate closings move large sums by wire, which makes them prime targets for business email compromise.
How it works: Criminals hack or spoof the email of a title company, attorney, or one of the parties. Just before closing, the buyer gets an urgent message with “updated” wiring instructions. Sellers get a variation: a request to send their proceeds or loan payoff to a new account. Once a wire lands in a fraudster’s account, the money can be moved on quickly, which is why speed matters so much.
How to beat it: Get wiring instructions in person or at the start of the transaction, then confirm them by calling your title company or attorney at a number you found independently, such as from your contract or the company’s official website. Treat any change to wiring instructions as fraud until proven otherwise. After you send a wire, call to confirm it arrived.
If you’ve wired money to the wrong place, the FBI’s advice is to contact your bank right away to try to stop or reverse the transfer, then file a complaint at IC3.gov.
Title and deed fraud
Seller impersonation targets owners of vacant land and homes without a mortgage. In a June 2026 public service announcement, the FBI described criminals who build fake driver’s licenses or passports, email accounts, and internet phone numbers to pose as the owner of a vacant parcel, then hire real agents and title companies to sell it. They often pull the owner’s information from public county records. The warning signs: a seller who wants a quick sale, accepts an offer well below market value, and always has an excuse for not appearing in person or on video.
Deed fraud is the cousin of that scheme: criminals forge and record a deed, such as a quitclaim deed, transferring your property to themselves, then sell it or borrow against it.
How to protect yourself:
- Sign up for your county recorder’s property fraud alert if it offers one; FBI Boston recommends monitoring your property records and setting up title alerts.
- If you’re buying, use a title company or real estate attorney, buy owner’s title insurance, and insist on identity verification of the seller.
- Avoid fully remote closings with a seller you’ve never met when you can, and ask for in-person identity checks.
Vehicle and escrow scams
Buyers face fake listings, often for a car priced well below market, where the seller can’t meet and offers to ship it through a “buyer protection program.” The FBI has warned that criminals send fake emails impersonating well-known companies and instruct buyers to pay with gift cards. Real escrow and protection programs don’t work that way.
Sellers face the overpayment check described above, usually from a buyer who wants to send a shipper to pick up the car. The FTC has warned specifically about this scam targeting online car sellers.
The fix on both sides: meet in person, inspect the vehicle, and use only an escrow company you found and verified yourself, never one the other party suggests or links to.
Identity theft through rental and purchase applications
Fake landlords and “sellers” use applications as a harvesting tool, collecting Social Security numbers, pay stubs, bank statements, and driver’s license photos. Real owners face the reverse problem: applicants using stolen identities to rent homes or buy vehicles on credit.
- Applicants: Share your Social Security number only after you’ve confirmed the property and the owner are real, and prefer screening services that let you submit information directly rather than emailing documents.
- Landlords and sellers: Verify identity documents in person, collect sensitive data only through secure channels, store it securely, and shred what you don’t need.
If your identity is stolen, IdentityTheft.gov, run by the FTC, walks you through a recovery plan.
Red-flag table
| Red flag | Where you’ll see it | What to do |
|---|---|---|
| Payment by wire, gift card, crypto, or payment app before meeting | Rentals, vehicles, deposits | Refuse; meet and verify first |
| Check for more than the price | Rentals, home and car sales | Refuse the overpayment; never refund the difference |
| Wiring instructions changed by email or text | Home and land closings | Call your title company at a known number |
| Seller can’t meet in person or on video | Vacant land, rentals, vehicles | Require in-person ID verification through a title company |
| Price far below market with pressure to act now | Rentals, vehicles, land | Slow down; compare listings and verify ownership |
| “Buyer protection” or escrow link sent by the other party | Vehicles, equipment | Use only a service you independently verify |
| Request for SSN before you’ve seen the property | Rentals | Confirm the landlord and property first |
Verify before you pay: a checklist
Run through this list before any money leaves your account:
- Have I seen the property or vehicle in person, or had someone I trust inspect it?
- Does the person’s name match the owner in county property records or on the vehicle title?
- Did I find the title company, escrow service, or attorney myself?
- Did I confirm wiring instructions by phone at a number I got independently?
- Is the payment method traceable and reversible if something goes wrong?
- Am I being rushed, or asked to keep the deal quiet?
- Would I be comfortable if this payment were never recovered?
If any answer gives you pause, stop and verify. A legitimate buyer, seller, or landlord will wait a day.
How to report a scam
Act fast; recovery odds drop by the hour.
- Your bank or payment provider: call immediately to stop or recall the payment.
- FTC: report scams at ReportFraud.ftc.gov, and identity theft at IdentityTheft.gov.
- FBI: file internet-enabled fraud, including wire fraud and real estate fraud, at IC3.gov.
- County recorder: report a forged or suspicious deed and ask about fraud alerts.
- Local police and your state attorney general: a police report helps with banks and credit bureaus.
- The platform: report fake listings to the website where you saw them.
Rules and remedies vary by state, so talk with a local real estate attorney if a forged deed or a lost closing wire is involved.
Next steps
- Find a vetted title company, escrow agent, or attorney to handle your closing.
- Protect your rental with the tenant screening guide for landlords.
- Buying privately? Read how to buy a house directly from the owner.
- Keep every step on track with the interactive FSBO checklist.
Frequently asked questions
What is the most common scam in by-owner sales?
Overpayment scams are among the most common: a buyer or renter sends a check for more than the price and asks you to send back the difference. The check later bounces and you owe the bank the full amount.
How can I tell if a rental listing is fake?
Warning signs include rent well below similar homes, a landlord who can't show the property in person, pressure to decide quickly, and requests for deposits by wire, gift card, or crypto. Search the address to see if the same home is listed elsewhere under a different name or price.
What should I do if I wired money to a scammer?
Call your bank immediately and ask it to recall the wire, then file a complaint at IC3.gov with every detail you have. The faster you act, the better the chance the funds can be frozen.
Can someone sell my house or land without me knowing?
Fraudsters can impersonate owners or record forged deeds, especially on vacant land and properties without a mortgage. Many county recorders offer free alerts when a document is recorded in your name, which helps you catch it early.
Is it safe to give my Social Security number on a rental application?
Only after you've confirmed the landlord is real, seen the property, and are using a secure screening process. Fake landlords collect applications specifically to steal identities.
Sources
- FTC Consumer Advice, Rental Listing Scams
- FTC Consumer Advice, How to Spot, Avoid, and Report Fake Check Scams
- FTC, Testimony Before the Joint Economic Committee on Combating Fraud (March 2026)
- FBI Internet Crime Complaint Center, PSA on Real Estate Seller Impersonation Fraud (June 2026)
- FBI Boston, Quit Claim Deed Fraud Is on the Rise
- National Association of Realtors, Online Real Estate Fraud Climbed to $275M in 2025, FBI Says