Given the value of real estate since COVID turned the housing industry on its head, it’s no surprise that scammers want a piece of the action. However, they have no interest in going the honest route. They want to trick others out of their valuable property, and though homeowners of all ages are at risk, scammers are laser-focused on older Americans.
According to a report from the Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center (IC3), total reported losses by those over 60 topped $3.4 billion in 2023, and that’s just the tip of the criminal iceberg. The FBI says that only about half of the 880,000+ complaints received in 2023 included age data, meaning they don’t know how much actual losses were for the 60 and over set.
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As home values climb, scammers get creative
If you’ve been in your home for a while, you may be sitting on a nice pile of equity. It’s that equity scammers want for their own. And the more valuable your home becomes, the more creative they become. Here are some of the most common scams being run in 2025.
Deed theft and title scams
The trick: Scammers use publicly available information about your property to create a fake deed, forge your signature(s), and visit the county recorder’s office or registrar of deeds’ office to record the fraudulent document. If they can pull an unethical notary in to notarize the deed, it now appears they’re the legitimate property owner.
Protect yourself: Unfortunately, it’s not always a stranger who perpetrates this scam. It can be an adult child or grandchild or even a good friend. Check in periodically with your county recorder of registrar of deeds to make sure no fraudulent deeds have been filed.
Wire transfer fraud
The trick: Someone contacts you by phone, snail mail, or email and claims to be your title company or escrow service. They tell you there’s a problem that needs immediate attention. The “problem” could be anything from an underfunded escrow to an issue with your home title.
Protect yourself: You’re told you can fix the problem by wiring money, which is untrue. If, for any reason, you ever believe there’s a problem with your mortgage, call your mortgage company and let them know your concerns. Explain that you’ve been contacted (and by whom) and allow them to investigate the issue. Never send money to anyone without knowing who it is on the receiving end.
The friend who wants to “help you out”
The trick: You’re already anxious about your financial situation when someone you feel close to suggests you sell your home. In fact, because they care about you, they’ll buy it themselves. They don’t tell you that they’ll buy it at a steep discount, sell it, and pocket the difference.
Protect yourself: No matter how vigilant we are, it’s easier to fall prey to someone we care about than to a stranger. Here are two solid ways to ensure your property is safe, no matter how old you are:
- Put your assets into a trust: A trust can protect you from all kinds of financial scams because, legally, the trust owns your home. When your house is in a trust, it’s the trustee who must sign a sales contract in order for it to be valid. Trustee is not simply an honorary position. If the trustee fails to act in your best interest, they can be sued for breach of trust, face legal action, and be dealt a financial penalty.
- Use a power of attorney: If you don’t have a trust, protect your interests by using a power of attorney to name someone who has your best interest at heart. Add this requirement to the agreement: You and the person you name under your power of attorney must unanimously agree before any property can be sold or given away.
Contracting scam
The trick: A scammer poses as a home contractor and convinces you that a problem with your house must be addressed. While they overcharge you for the job, they never deliver on their work.
Protect yourself: Never take the word of a single contractor. Let’s say you have questions about a particular section of your roof. Call two reputable contractors to find out if it’s an issue that needs to be dealt with and learn how much they would charge. Never allow yourself to be “scared into” signing a work contract.
Reverse mortgage scam
The trick: While a scammer pretends to want to help you, you’re pressured to take out a reverse mortgage, convinced that it will be the answer to your financial woes. You realize you’re being pressured, but figure it must be the scammer’s style.
Protect yourself: Never make a decision about a reverse mortgage without seeking the assistance of an attorney or financial advisor who can help you figure out how much the reverse mortgage will actually cost. Reverse mortgages are notoriously complex, making them a perfect instrument for scammers. That’s not to say that all reverse mortgages are scams, but those that charge exorbitant fees and hide the actual cost of the financial arrangement are.
Maybe scammers believe seniors are so busy enjoying their golden years that they won’t notice getting ripped off. Or perhaps they’re too foolish to recognize the wisdom that comes with age. Whatever their reason for targeting seniors, it’s up to you to stand your ground and protect your financial assets.