Rana Robillard nearly lost her life savings and her dream home this year after falling victim to an elaborate internet scam. The experienced Bay Area technology professional wired nearly $400,000 as what she believed was a down payment on a home in Orinda, only to discover she had been deceived.
“That’s when I went into a full panic,” Robillard, 55, recounted to CNBC, which covered her alarming experience in detail.
Robillard’s case is not an isolated incident. The real estate industry’s increasing reliance on online transactions has streamlined the buying and selling process, eliminating the cumbersome need for buyers, sellers, real estate agents, mortgage lenders, and title company employees to navigate stacks of paperwork. However, this convenience has also opened the door to a surge in fraudulent activities that have collectively cost homebuyers millions.
The email request for Robillard’s down payment closely resembled numerous legitimate messages she had received throughout the transaction, making it difficult to detect the scam. Cybercriminals have become adept at imitating authentic communications, using the names of real title company employees and official logos, which are further enhanced by the capabilities of artificial intelligence.
According to FBI data cited by CNBC, losses due to real estate fraud involving fake emails have skyrocketed from under $9 million in 2015 to a staggering $446.1 million in 2022. A study commissioned by the Florida law firm Anidjar and Levine highlighted California as the most affected state, with 1,583 reported cases and total losses amounting to $24.8 million in 2023.
Robillard, fortunately, was able to recover her funds after promptly reporting the crime. Through coordinated efforts, law enforcement tracked her $398,359.50 through multiple banks as the perpetrators attempted to launder the money. After several months and inquiries from CNBC, she received $150,000 from one bank, followed by nearly $250,000 from another.
In reaching out to CNBC, Robillard aimed not only to reclaim her lost funds but also to shed light on the growing threat of real estate fraud. “This is not what I thought my public representation would look like, which is that I’ve lost all this money,” she expressed. “If it helps other people, I’m happy to do it, even though it’s obviously not my proudest moment.”
The rise in real estate fraud is a concern shared by many. The author of this article narrowly avoided becoming a victim as well, receiving a convincing email from the title company involved in their downsizing transaction. The message appeared authentic, even bearing the name of the title company employee managing the deal.
Initially intending to follow through with the request, the author received a timely phone call from their lender regarding the transaction. Upon mentioning the email, the lender immediately recognized the potential for fraud. This timely intervention proved crucial. A few days later, the author successfully presented a legitimate cashier’s check to the title company and signed the correct paperwork.
Among the documents signed was a warning regarding fake payment instructions, a precaution that perhaps should have been emphasized earlier in the process to better protect unsuspecting buyers.
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