Real Estate Fraud Risks Grow as Data Brokers Share Property Details

Personal information from public records and data brokers is increasingly used in real estate fraud, affecting both property owners and industry professionals.

People search sites and data brokers gather property records, contact details, and other personal data from public sources and package them into profiles that can be purchased. These profiles often include home sale histories, past addresses, phone numbers, relatives, and email addresses, making them valuable to various buyers and potentially accessible to scammers.

According to the FBI’s Internet Crime Complaint Center, scammers can obtain property parcel owners’ personal information from public websites, data brokers, phishing, or the dark web. This information is sometimes used to impersonate legitimate owners in fraudulent real estate transactions, including attempts to sell properties without the true owner's knowledge.

Wire fraud schemes in real estate commonly target sellers near the closing stage, with scammers sending false payment instructions to divert funds. These tactics rely on detailed personal information that is often available through data brokers and people search platforms.

What the numbers show

• Wire fraud in real estate transactions resulted in approximately $446.1 million in losses in 2022
• More than 50% of real estate professionals experienced at least one seller impersonation fraud attempt in the last half of 2023
• Data brokers and people search sites compile property, contact, and ownership data from public records

People search sites collect information from federal, state, and local records, including property ownership and sales details. This data is then compiled into reports that can be purchased by anyone, increasing the risk of misuse by unauthorized parties.

Data brokers supply information to people search sites, and these sites generate additional data that brokers aggregate. As a result, individuals seeking to protect their privacy may need to request removal from both types of platforms to reduce their exposure.

Advice published for property sellers suggests monitoring property records, removing personal data from broker sites, and submitting opt-out requests to both data brokers and people search sites. These steps are recommended to help limit the availability of sensitive information that could be used in fraudulent activity.

The aggregation and sale of personal and property data by brokers and search sites have created new challenges for privacy and security in real estate transactions. Ongoing vigilance and proactive data management are necessary to help reduce risks associated with these practices.

* This article is based on publicly available information at the time of writing.