Fake sellers, real consequences: the growing threat of vacant property fraud
Vacant homes have always carried a certain level of risk. Without an owner present, properties can attract vandalism, trespassers, and maintenance issues. Today, however, vacant properties are attracting a different kind of threat: organized real estate fraud.
Criminals are increasingly targeting vacant homes and vacant land to carry out fraudulent listings, fake rental schemes, and impersonation scams. These schemes are becoming more sophisticated, and in many cases, real estate professionals are the first point of contact with the fraudster.
For agents, brokers, and property managers, this creates a new and urgent responsibility: verifying that the person claiming to own a property does.
How vacant properties create opportunities for scammers
Vacant properties can create ideal conditions for fraud when ownership and identity are not verified.
In many cases, scammers identify properties that are unoccupied, recently inherited, or owned by individuals who live out of state. Because no one is physically present to challenge suspicious activity, criminals can pose as property owners and attempt to sell or rent the home.
Several common schemes are emerging nationwide:
- Fake property listings
A scammer impersonates the property owner and contacts a real estate agent to list the home for sale. They often claim to be relocating, traveling internationally, or otherwise unavailable to meet in person. If an agent does not verify the individual’s identity, the property may be marketed and shown under fraudulent circumstances.
- Fraudulent rental listings
In rental scams, criminals advertise a vacant home online, collect deposits or application fees from prospective tenants, and disappear before victims realize the property was never available for rent.
- Squatters posing as owners or landlords
Some scammers gain access to vacant properties and then present themselves as the rightful owner or landlord when potential renters or buyers arrive.
- Vacant land fraud
Vacant land is another common target for fraud. Because land transactions often involve remote owners, limited interaction, and no physical structure, scammers impersonate the owner and attempt to sell the property before anyone realizes the identity theft.
These schemes can unfold quickly, and once money changes hands, victims may have little recourse.
Real-world cases highlight the growing risk
Recent investigations illustrate how widespread these scams have become.
In Texas, investigators uncovered multiple cases where criminals listed vacant homes as rental properties, collected deposits from unsuspecting renters, and vanished before the fraud was discovered.1 In some instances, victims showed up with moving trucks only to find the home was never available for rent.2
In Florida’s Santa Rosa County, law enforcement warned residents about rental scams involving vacant properties after a recent case where a fraudster attempted to lease a home they did not own.2
Vacant land scams are also increasing. In one reported case, a scammer impersonated a property owner and worked with a real estate agent to attempt to sell vacant land. The real owner only discovered the fraud when the legitimate title holder was contacted during the closing process.3
These incidents are not isolated. They represent a broader trend in real estate fraud that is becoming more common as transactions move increasingly online.
Fraud prevention often starts with the real estate agent
Real estate professionals are uniquely positioned at the beginning of a transaction. Agents often interact with property owners before title companies, attorneys, or lenders become involved.
That early interaction makes identity verification critical. When agents unknowingly work with a fraudulent “seller,” several risks emerge:
- Financial risk for buyers or renters
Clients may pay deposits, earnest money, or other fees tied to a fraudulent listing.
- Lost time and resources
Agents may invest hours to marketing, scheduling showings, and coordinating transactions for properties that cannot legally be sold or rented.
- Reputational damage
Showing or advertising a fraudulent property can undermine trust with clients and damage an agent’s professional credibility.
- Potential legal complications
In some cases, fraudulent transactions can trigger disputes that involve brokers, agents, and other professionals connected to the listing.
For these reasons, verifying the identity of every seller or landlord is becoming an essential step in responsible real estate practice.
The role of identity verification in preventing fraud
Fraudsters rely on anonymity and speed. When a transaction moves forward without confirming identity, scammers can exploit that gap.
Verifying identity allows agents to confirm key details before listing a property or facilitating a rental.
This may include confirming:
- The person’s identity and contact information
- Whether they are associated with the property in question
- Public records tied to ownership
- Any potential red flags related to the individual or transaction
When verification is performed early in the process, suspicious activity can often be detected before the property is marketed or money changes hands. This protects both the agent and their clients from becoming part of a fraudulent transaction.
How FOREWARN helps agents verify identities quickly
Tools such as FOREWARN are designed to help real estate professionals verify identities before engaging in property transactions.
FOREWARN provides agents with access to identity intelligence that can help confirm whether an individual is who they claim to be. By verifying identity early in the process, agents can make more informed decisions about who they are working with and whether a transaction raises potential concerns.
In situations involving vacant homes, rental properties, or land sales, this type of verification can provide an added layer of protection before a listing agreement is signed or a showing is scheduled.
Because these checks can be completed quickly, they allow agents to maintain efficient workflows while still performing due diligence.
Protecting clients and the integrity of transactions
Real estate fraud schemes will continue to evolve as scammers look for new ways to exploit gaps in the transaction process. Vacant homes and land will likely remain attractive targets due to their limited oversight.
For agents, adopting consistent verification practices is one of the most effective ways to reduce risk. By verifying every seller or landlord before moving forward with a listing or rental transaction, agents can help protect:
- Their clients from financial loss
- Their own professional reputation
- The integrity of the real estate marketplace
In an environment where fraud tactics are becoming more sophisticated, identity verification is no longer just a precaution. It is a critical step in responsible real estate practice.
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1 https://www.cbsnews.com/texas/news/i-team-finds-rental-scams-targeting-vacant-homes-in-dfw/
2 https://weartv.com/news/local/santa-rosa-county-sheriff-warns-of-home-rental-scams-after-recent-case
3 https://www.businessinsider.com/vacant-land-scams-real-estate-agent-explains-2025-8