Protecting your business from land scams

February 25, 2025 | FOREWARN
Reading Time: 4 Minutes

Land scams are on the rise, and real estate professionals are increasingly at risk from fraudsters looking to impersonate property owners and sell land they don’t own. These scams can have widespread financial and legal consequences if left unchecked. As fraudulent listings and identity manipulation become more sophisticated, it’s critical for agents to be proactive in verifying the identities of any potential client.

Understanding land scams

At its core, a land scam involves a fraudster posing as the legal owner of a property and attempting to sell it. This impersonation is often coupled with tactics designed to create a sense of urgency—a quick cash deal, a promise of rapid closing, or communications that avoid face-to-face meetings. The scammer may use a combination of emails, text messages, and forged documents to build trust with agents and potential buyers with the goal of securing funds for a property they have no legal claim to.

Why these scams are so prevalent

  • Low-visibility targets: Vacant or underutilized land often lacks the extensive public records and oversight that urban, developed properties have, making it easier for scammers to slip through the cracks.
  • Digital listings: Online platforms for property listings have made it easier for fraudsters to create deceptive profiles and post fraudulent ads, often under the guise of “For Sale by Owner” (FSBO).
  • Complex verification processes: Traditional methods of verifying land ownership—such as cross-referencing public records—can be time-consuming, and it may not be possible to confirm ownership simply by visiting the property and speaking with the resident when the transaction involves a vacant lot or land parcel.
  • False identities: Many fraudsters can present fake IDs matching the identity of the property owner in public records, information that can be found by searching online. Many can also present forged and notarized documents.

The importance of due diligence

As fraudulent activity increases and scammers become more sophisticated, it’s more important than ever to perform thorough due diligence prior to meeting with any new client. Agents should not rely solely on initial documents or superficial checks. Instead, a multi-layered verification process is essential:

  • Proactively verify identities: Check ownership details through agent safety apps like FOREWARN® to help ensure that the seller’s information aligns with public records.
  • Scrutinize communication channels: Be cautious if the contact method seems inconsistent—such as receiving a call or message from an unexpected number or an email address that only loosely resembles what is found on official records.
  • Ask the right questions: Engage in conversations with questions that can be independently verified—even a small discrepancy can signal the need for additional authentication.
  • Be cautious of urgent requests: Ensure you don’t move so quickly to complete a sale that you overlook due diligence. Many scammers are looking to close a deal quickly, preferring all-cash sales and fully remote transactions. They may also cite several reasons why they cannot meet in person or on video.

How FOREWARN mitigates risk

This is where FOREWARN steps in as an indispensable tool for real estate professionals. FOREWARN has long been known as the leading personal safety app for real estate professionals, but it can also provide exceptional protection against potential fraud, including land scams. By providing a fast way to help verify identities, FOREWARN allows agents to quickly uncover inconsistencies that may indicate they are involved in a scam. Here’s how it can help:

  • Instant verification: FOREWARN instantly helps agents verify that a caller’s phone number or name matches up with public records, displays associated property records, and reveals potential criminal convictions.  This saves agents valuable time and effort.
  • Red flag alerts: The platform surfaces anomalies such as mismatched phone numbers, inconsistent addresses, or suspicious document details that may otherwise go unnoticed. Taking simple measures to look into inconsistencies can include calling the prospect back on the number they initiated the call on to confirm it wasn’t spoofed, or calling the prospect back via their verified number in FOREWARN if the number they called from initially is not linked to them. And in many cases, simply asking the prospect additional questions and comparing their answers to information in FOREWARN can help you better understand the situation.
  • Enhanced confidence: With FOREWARN, agents can approach every transaction with greater confidence, knowing they’re taking an additional step to protect their business and clients from fraud.

Land scams represent a significant threat to both property owners and real estate professionals. By understanding the tactics used by fraudsters and adopting a meticulous approach to verifying identities, FOREWARN helps agents safeguard themselves against potential scams. In an industry where reputation and reliability are paramount, investing in the right technology to mitigate risk is an essential step forward.