As we continue to live and work in the modern digital age, we all need to be consistently vigilant and on the lookout for bad actors and scams. Recently, the United States Secret Service informed the National Association of REALTORS^® (NAR) about a new cryptocurrency scam that is targeting real estate professionals.  

The scam involves people posing as wealthy all-cash buyers who contact a real estate agent to grow a relationship. While building rapport with the agent, the fraudster lies about getting rich through cryptocurrency. The fraudster then entices the real estate agent to check out a cryptocurrency investment website. The website appears legitimate and lists apparently real cryptocurrencies to trade.  

The fraudster lures the agent to make a small investment, and the agent makes a large return. The fraudster even allows the agent to withdraw the profit. Because the agent has made a sizable profit, the agent now believes the investment to be legitimate and is attracted into making larger investments. As you can probably gather by now, the agent never sees that money again.  

So, how can you avoid this and other scams like it? In response to this information from the Secret Service, NAR recommends the following:  

1. If you receive unsolicited messages, whether by text, social media, or emails, DO NOT respond.  
2. Always be cautious when sharing any personal information online. Scammers often exploit personal details to build trust with their victims.
3. Some red flags to look for are people who attempt to rapidly develop a relationship, people who make an impression of wealth and investment knowledge, people who promise fast and large returns, people who stress the urgency to make a quick decision, and people who decline meeting in person.
4. Always thoroughly research any investment platform before investing. This includes researching online corporate records and registration information with entities such as the Securities and Exchange Commission.  

REALTORS^® should also be aware of other common cybercrimes. These include phishing/vishing/smishing/pharming, wire fraud, and personal data breaches.  

Phishing/vishing/smishing/pharming occurs when fraudsters use unsolicited communications from a company that appears legitimate to obtain personal information, financial information, and login credentials.  

Wire fraud occurs when fraudsters compromise an email account to make a fraudulent fund transfer.  

Personal data breaches occur when criminals view, copy, steal, or transmit an individual’s personal. sensitive, protected, or confidential data.  

Here are some additional risk reduction tips from NAR to avoid these types of cybercrimes: 

1. If you have staff, train them to be suspicious before clicking unknown links or email attachments.  
2. If you utilize business software and equipment, make sure to routinely install patches and updates.  
3. Inform and remind your consumers throughout your transactions about the threat of wire fraud and always verify any wire or payment instructions with a known contact. 
4. Utilize strong passwords, and DO NOT use the same password for multiple accounts. 
5. Use multi-factor authentication tools when available. 
6. Backup your digital data and files regularly. A best practice is to use the 3-2-1 strategy, which means 3 copies of data in 2 different formats with 1 copy stored off-site. 
7. If you work with vendors, require them to adhere to good cybersecurity practices, and obtain such securities in your contracts with the vendors.  

Lastly, if you encounter suspected cryptocurrency fraud or any cybercrime incident, report it to www.ic3.gov and local law enforcement.  

Did you know Virginia REALTORS^® provides a member benefit that helps ensure safer engagements and smarter interactions with clients? FOREWARN gives real estate professionals instant access to identity verification, criminal history, and financial data—all from just a phone number or name. As a member of Virginia REALTORS^®, YOU can register for a complimentary subscription to FOREWARN today.