Did you know that fraudsters in the real estate sector cause damages amounting to millions every year? Many owners and heirs underestimate the new digital dangers and sophisticated deception methods. This article reveals the 5 most common scams and provides a practical checklist to help you avoid fraud and securely complete your investment.
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Never pay in advance for reservations, keys, or viewings – reputable providers never demand this.
Have all documents, especially appraisals and land registry excerpts, reviewed by an independent notary.
Be extremely cautious with emails urging immediate action or containing links to login pages (phishing risk).
Could your real estate business be costing you thousands without your knowing? The threat of real estate fraud is higher than ever according to the Federal Office for Information Security (BSI). Criminals use a mix of psychological pressure, forged documents, and digital attacks to deprive sellers and buyers of their assets. From manipulated appraisals to phishing attacks targeting your bank data – the methods are becoming increasingly professional. However, you are not powerless. With the right knowledge about warning signs and preventive strategies, you can reduce the risks by over 90%. This guide provides you with the tools to confidently identify and avoid fraud attempts.
The new fraud landscape: Risks have increased by 30%
Digitisation has revolutionised the property market but has also created new opportunities for criminals. The BSI warns in its situation report of a tense to critical threat situation affecting all sectors. Fraudsters operate internationally, using professional tactics that are often only discovered after contracts are signed. A typical example is identity theft, where fraudsters act with a copy of your identity card. Even handing over a copy of your ID card can be enough for a fraud attempt. The police registered over 5.6 million crimes in 2023, with fraud offences playing a significant role. Comprehensive security in assessments is therefore not a luxury, but a necessity. Knowing the current fraud schemes is the first step to minimising risk.
Warning Sign Prepayment: How Fraudsters Exploit Fees
One of the most common and effective scams is the demand for advance payments. Fraudsters ask for fees for alleged reservations, the drafting of contracts, or the sending of keys, often causing damage amounting to several hundred to thousands of euros per attempt. The consumer advice centre warns strongly: Never transfer money before you have viewed a property and signed a notarially certified contract. Fraudsters often invent plausible reasons, such as being abroad, making a personal viewing impossible. Here is a list of typical pretences:
Offering an exclusive reservation for a fee of €500.
Demanding a “deposit” for sending the key by post.
Payment of an administrative fee to be shortlisted.
Allegedly necessary advance payment to cover notary costs.
Reputable partners never demand money for a viewing or an initial offer. Such demands are a clear indication of an attempted fraud, which you should report immediately to the respective real estate portal. This vigilance is crucial to minimise risks specifically and prevent financial losses. Verifying documents and identities forms the next line of defence.
Forgery of documents: When appraisals and land registers lie
A manipulated valuation report or a forged land register excerpt can lead to damages exceeding €100,000. Fraudsters professionally use forged documents to feign an inflated value or offer non-existent properties. Often, defects such as dampness or construction defects are deceitfully concealed, resulting in expensive renovations after the purchase. The German Federal Chamber of Notaries emphasises the importance of having all documents checked by an independent notary who verifies their authenticity. Since 1 April 2023, there is also a cash payment ban in real estate transactions to prevent money laundering; the notary must verify non-cash payments. Never be pressured into signing a contract without thorough examination by your notary. An independent, AI-supported evaluation from Auctoa provides an additional layer of security by determining an objective value based on millions of market data points to prevent manipulations. Such trustworthy valuations are essential. However, dangers lurk not only on paper but also in the digital realm.
Digital Threats: Defending Against Phishing and Fake Portals
Cybercriminals use phishing emails and fake websites to steal your personal data and money. An email that appears to be from a well-known real estate portal or your bank might contain malware or redirect you to a fake login page. The BSI classifies ransomware, which is extortion software, as one of the greatest threats to small and medium-sized enterprises as well as individuals. A careless click may be enough to give criminals access to your entire network. Pay attention to the following warning signs to detect 95% of attacks:
The sender's email address looks suspicious or deviates from the official name.
You are urged to perform an urgent and unexpected action (e.g., “Confirm your account now!”).
The salutation is impersonal, even though the company knows you as a customer.
The link in the email leads to a URL that does not match the company's official domain.
Never disclose sensitive data in response to an email request. Instead, always contact the provider via their official website or phone number. To further mitigate the risks of selling a house, choosing the right partner is crucial.
Conclusion: Effectively avoid fraud with data-driven auditing
To avoid fraud, a combination of healthy skepticism, careful examination, and the use of digital tools is necessary. Over 90% of fraud attempts fail when owners and buyers pay attention to clear warning signs and refrain from making hasty decisions. Verify the identity of each partner and insist on having all documents examined by an independent notary. Use data-driven evaluations to exclude price manipulation. Auctoa's ImmoGPT chat can answer initial questions and provide a first assessment around the clock. A well-founded, AI-supported analysis protects your assets and ensures that your decision is based on facts. Act informed, not on impulse – this is the best protection against fraud.
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Additional useful links
Wikipedia provides comprehensive information on real estate fraud.
The Hamburg Police informs about fraudulent apartment ads.
The Consumer Advice Centre offers tips on how to identify fake real estate ads on the internet.
Transparency International Germany provides an article on money laundering in real estate in Germany.
The Federal Statistical Office (Destatis) provides statistics on justice and legal care.
The Police Consultation offers advice on avoiding fraud when searching for an apartment.
The SWR reports on the blocking of fraudulent websites.
Die Zeit offers an article about investigations into real estate fraud in Germany and Switzerland.
FAQ
What is the most common scam?
The most common scam is advance payment fraud. In this case, interested parties are persuaded to make a money transfer under a pretext (e.g., key deposit, reservation fee) even though a property does not exist or is not available.
How secure are online real estate portals?
The platforms themselves are generally secure, but fraudsters use them to post fake ads. Therefore, always be sceptical of offers that seem too good to be true, and carefully vet the providers.
What does the cash payment ban mean when buying real estate?
Since April 2023, properties in Germany can no longer be purchased with cash. The purchase price must be transferred via bank transfer, and the notary is obliged to verify proof of non-cash payment before applying for the ownership transfer in the land register.
Does the notary protect me from fraud?
The notary has a neutral duty to review and inform. They ascertain the identity of the parties, check the land registry, and ensure a legally secure transaction. However, they cannot uncover hidden defects or assess the market value of the property.
What is phishing in the context of real estate?
Phishing is the attempt to obtain your personal data, such as passwords or bank details, through fake emails, SMS, or websites. Fraudsters pose as brokers, banks, or property portals in the process.
How can an AI assessment from Auctoa help prevent fraud?
An AI-powered assessment from Auctoa provides an objective, data-driven market value for your property. This protects you from price manipulation through fake or biased appraisals and gives you a reliable foundation for negotiations.
