It Takes a Village

If you used your best imagination, you could not dream of the ways scammers invent to steal not only your cash but now your property. In the past, we only had to worry about squatters. That was then—this is now!

Be Cautious with Wiring Instructions

First and foremost, when buying a property, be extremely vigilant about wiring instructions. Always confirm with your REALTOR® that the instructions are actually from escrow. Keep in mind that wiring instructions will never change. Double-check the address bar of any website you are using; even if the site looks authentic, the smallest discrepancy can mean you’re dealing with a scammer. Once funds are wired and gone, it’s very unlikely you’ll get them back.

Scammers Targeting Absentee Owners

Lately, due to the large number of absentee property owners in Hawaii, we are being heavily targeted by scammers pretending to be owners. These fraudsters often have fake IDs and claim to be from California (or other states). Their targets are usually vacant land or unoccupied homes with no liens or mortgages. To make their scam believable, they feign distress and appear willing to accept extremely low prices for a quick sale.

Signs of a Scam

Once a buyer is interested, the scammer conveniently claims to be out of the country and requests that the proceeds be wired to an international account. Some even go as far as visiting the American Embassy with forged IDs to sign closing documents. These scammers refuse to use secure online notary services because of the digital tracking feature. Once the property transfer is recorded, it’s incredibly difficult to undo. While title insurance typically covers the parties involved, sellers often don’t get the property back, only a monetary settlement.

How to Protect Yourself

So, what can an owner do? A vigilant real estate agent is your first line of defense. In addition to watching for the red flags mentioned above, your agent should ask the scammer how they found the property. Check if they can correctly pronounce the street name or mention specific property features that only a true owner would know.

If there are still doubts, send snail mail to the owner of record and ask for a copy of their ID. You can also request a Zoom meeting with the alleged seller to verify their identity. Another trick is to do a reverse phone number search to see if it matches the supposed owner. Some agents even suggest asking for an unusually high commission—if the scammer agrees without hesitation, something’s definitely wrong.

Check Your Property Online Regularly

If the property does get transferred, it’s unlikely anyone will notice until the real owner stops receiving tax bills or finds someone else on their property. It’s a good idea for owners, even local ones, to search for their property online regularly to make sure it’s not listed for sale without their knowledge.

Unfortunately, with the rise of artificial intelligence, these types of scams are likely to get worse. It’s a wild electronic world out there, and even when you’re at your most diligent, protecting your property may require the help of others. If you’re buying property without the guidance of a real estate agent, good luck—you’ll need it!