What you need to know about listing fraud and real estate risks

"Over the years, Berger said Property Shield has removed roughly 492,000 fraudulent listings from major platforms for its customers. Additionally, Berger noted that in 2024 alone listing fraud cost consumers $173 million according to a report by the Federal Bureau of Investigation (FBI). Listing fraud, which is also known as seller impersonation fraud, is most common in Atlanta, Dallas, Phoenix, Denver and Los Angeles, according to Property Shield data."

"We found on average that between 15% to 25% of listings are fraudulent in any given market no matter small markets or big markets the issue is pretty much everywhere, Berger said. According to Berger, fraudulent listings can lead to trespassing, squatting and even property damage, causing a liability time bomb. And while awareness of the issue is important, Berger noted that fraudsters are becoming more sophisticated in their attacks and deception."

"For real estate professionals, there is perhaps nothing more mundane than E&O insurance. But while many simply write it off as a cost of doing business, Steven Stecker, a senior vice president at insurance firm Victor, highlighted some trends that Realtors should be aware of. In 2024, Stecker said his firm paid $37 million in E&O claims. We do pay a lot of claims and the industry in general pays a lot of claims, Stecker said."

Listing fraud, also known as seller impersonation fraud, is widespread across markets including Atlanta, Dallas, Phoenix, Denver and Los Angeles. Property Shield removed roughly 492,000 fraudulent listings from major platforms, and 2024 listing fraud cost consumers $173 million, per the FBI. On average between 15% and 25% of listings in any market can be fraudulent. Fraudulent listings can cause trespassing, squatting and property damage, creating significant liabilities. Fraudsters are becoming more sophisticated in their attacks and deception. Proactive monitoring of listings is presented as the scalable solution, while E&O insurers report rising claim frequency and severity.

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