What appears to be a nationwide, fraudulent, real estate crime ring is allegedly responsible for presenting fake listings with stolen agent information to hopeful buyers for a costly monthly fee through at least 16 persuasive websites.
According to two longtime industry agents directly affected by the scam who spoke to RISMedia as well as a police investigation reportedly launched from one of the agent’s local markets, the listings appear to be scraped off of sites such as Zillow, then billed as foreclosures and astonishing for sale by owner (FSBO) deals. Random agents nationwide are getting attached to these listings without their knowledge, an inquiry showed.
RISMedia has verified that the network of alleged websites, each similar in design and overall format, displays realistic-looking, desirable and affordable listings, charging a $1 introductory fee to gain access to services and view new “listings.” After the introductory period is up, a recurring membership fee of $49.99 per month becomes the forefront of the scheme, it appears.
“The websites are sophisticated and look legitimate; they must have taken a long time to build,” says Brett Woolley, an agent with HomeSmart serving the greater Phoenix, Arizona area, whose name and listings were scraped as part of the alleged scam. “Some people said they could search nationwide; others said they could only search locally. The fake listings are a combination of old MLS listings stolen from various portals, FSBO listings stolen from various portals, and a large percentage are simply made up and cobbled together with a real address, but stolen photos of some other house, not the actual house of the address.”
Discovery of a scam
Woolley was first notified that he was falsely associated with one of the alleged fraudulent sites when he was contacted by an interested buyer hailing from Florida, some 2,000 miles away.
This discovery launched a personal mission of sorts for Woolley, who to date, has now spoken directly with over 400 alleged victims in 47 states and Canada, he says, and he noted that everybody who he personally spoke with appeared to have discovered this sham from Google searches, as the domain names are simply keyword search phrases. Ads are also seen on Facebook, Zelle and through local radio stations, he shared.
“Almost everyone (potential buyers) I talked to was economically disadvantaged looking for a deal, or investors looking for deals,” says Woolley. “I’ve talked with about 25 real estate agents, and most were skeptical, and were researching on behalf of their clients. Some agents thought it was real before speaking with me.”
The 16 fraudulent sites on which Woolley and one other agent who spoke with RISMedia say they have found their information fraudulently displayed in association with this alleged scheme include: HUDHomesUSA.org, iRealtyEdge.com, GetRentToOwn.com, HUDForeclosed.com, RealtyStore.com, HousingList.com, YourRentToOwn.com, Rent2OwnInc.com, RentBeforeOwning.com, FirstRentToOwn.com, RentToOwn.org, ForeclosureFortunes.net, SourceRealEstate.com, WhereForeclosures.com, Zip-Foreclosures.com and UltraForeclosures.com.
Darrell Blomberg, broker/owner of AzTech Realty LLC in Scottsdale, Arizona, was put in a similar, fraudulent position to Woolley, and, while the two said they previously had not known or worked with each other, they are often placed on listings together.
“I started getting random phone calls from, initially, primarily east of the Mississippi—people asking me about specific addresses, of which I am only licensed in the state of Arizona,” says Blomberg. “I only do business, realty-wise, in the state of Arizona. I told them I was not licensed in whatever state they were calling from, and I asked more often than not, if indeed they had put in their credit card information, and people that had said yes, I said, ‘Well, I have nothing to do with that listing.’”
Blomberg said he made it a point to let these potential buyers know that they should put in a call to their credit card companies immediately as a result of clear-cut fraud. And from his perspective—like Woolley—many times, when typing in an address to see the street view of some of these listings through services such as Google Maps or Bing, they conflicted. It wasn’t the same house, or there were inconsistent pictures on the specific listings, he said.
Through GoDaddy, an American publicly traded internet domain registry, domain registrar and web hosting company, Blomberg said he tracked ISPs that showed up in India, though some websites were also registered in Massachusetts.
Blomberg estimates that a little more than 100 people have contacted him through email and phone.
Bringing the matter to authorities
After speaking to hundreds of victims across the country and Canada—or from what he said was their initial perspective, excited, hopeful buyers looking to work with Woolley—he took the next step and contacted Gilbert, Arizona, authorities.
An email from a detective from the financial crimes unit in the Gilbert (AZ) police department was forwarded to RISMedia indicating the matter is being investigated, and a public information officer from the Gilbert Police Department confirmed via email to RISMedia that the investigation is active and as such they are unable to provide further information on the case at this time. For anyone who thinks they may have been a victim of this type of scam, Gilbert PD suggests they call their local police non-emergency line or visit the FTC website at consumer.ftc.gov. To report fraud, scams and bad business practices, they can also visit the federal government’s website at reportfraud.ftc.gov.
Additional information the agents discovered
The alleged crime ring has proven more than savvy, Woolley shared, using telemarketers who are keen on snagging Social Security numbers and various other information from victims, as they continue to promote eligibility for what they call “loan confirmation.”
Agents attached to listings cover a wide range of locations, with some from random regions, but some who are actually local to the areas in which homes are being advertised. When agents are in proximity to, or actually cover, the listing area they are falsely paired with, the sites appear to gain validity. Sometimes the phone numbers linked with agents are fake with an accurate area code, and sometimes the information is correct, but stolen—both linked with phony listings, nevertheless. A number of agents used on the sites may be fictional altogether.
“Some of the agents who appear on the sites are local agents, and others like me are just randomly stolen names and contact info and used in all states. The use of local agents makes it harder to detect the scam,” explains Woolley.
One of the 16 websites, GetRentToOwn, even claims positive press from a well-respected newspaper, the Times Union, in Albany, New York. The alleged critical acclaim reads:
“One of the unique aspects of a lease option is the potential offer for putting no money down upon signing the lease. There are creative ways that can be explored when a person is short on finances, but wants the ability to make payments toward future homeownership.” — Times Union newspaper, Albany, New York.
However, reached for comment by RISMedia, Executive Editor and Vice President Casey Seiler debunked this in a statement, saying, “I can’t find that paragraph in any Times Union content, whether ‘advertorial’ or newsroom-produced (the former bucket of content is, of course, always labeled as such). There’s nothing in our online archives as well.” Seiler also mentioned that he was going to “reach out to this outfit and ask them to either provide a link,” which he didn’t think they could do, “or take it down.” But, Seiler next attempted to call the GetRentToOwn phone line with no success, and its “contact us” page proved to be a dead end, providing no ability to contact the alleged organization.
How to spot a fake website
As a buyer or buyer’s agent, it’s critical to know how to depict a fake listing website from a legitimate one.
Tracey Hawkins, a national safety expert, content creator and former real estate agent, provided RISMedia with a list of what to look out for when spotting a fake real estate website.
“As a long-time real estate safety and security expert and AI cybersecurity instructor, I’ve seen firsthand the devastating impact of online scams caused by fraudulent websites,” says Hawkins. “The websites look legitimate to the unsuspecting eye. However, even the expert eye cannot determine a fraudulent website at a glance.”
According to Hawkins, the rise of generative AI has added a new layer of complexity to this battle. “These sophisticated tools can create realistic websites with fabricated content, forged reviews and even AI-generated—deep fake—images of properties that simply don’t exist,” she says.
She provides the following tips for getting educated in order to stay ahead of the curve:
- Examine the URL: Hover your mouse over the website header and look closely for slight misspellings, extra letters or numbers.
- Don’t rely only on HTTPS symbols: While it indicates basic encryption, don’t let that padlock symbol fool you. Remember, even secured connections can lead to malicious sites.
- Domain age: Newly registered domains can be a warning sign; beware of seemingly established ones. Scammers can acquire older domains and repurpose them for nefarious purposes. Sometimes the age is in the footer. You can look back at the first post and publish dates, etc. Websites like WhoIs allow you to learn the owner’s data. Treat every website with due diligence. Tools like Google Safe Browsing can help spot fake websites—however, they are imperfect and should be a tool in your cybersecurity toolbox.
- Contact verification: The lack of a physical address, phone number and email address is a warning sign. However, even those can be fabricated using AI. Cross-check them on independent platforms. Remember, a real business leaves a trail of internet activity.
- Reviews, what customers are saying: Glowing testimonials and seemingly genuine user reviews can be AI-produced mirages. Look for diverse perspectives and independent review platforms. The best warning sign can be negative reviews. When you Google the suspected website, business name and web address, study the reviews, BBB ratings and comments. That is where you will get the full picture of crimes, losses and fraudulent behavior. Real victims will typically not hold back.
- Content cues: Poor grammar is no longer a warning sign. In the past, misspellings and grammatical errors were the biggest warning signs of fraudulent emails and websites. However, cybercriminals use generative AI tools, like ChatGPT, Gemini, Bing, Canva, Claude, etc. to write grammatically correct content. You have to dig deeper and do your research.
- Gut instinct is your most powerful tool: If something feels off, trust your intuition. Don’t ignore that inner voice whose sole purpose is to warn us of danger.
- Social media presence: A legitimate business will likely have an active and consistent social media presence. Look for authentic and organic engagement, diverse interactions and a community beyond AI-generated bots. Note the date of the oldest posts to determine how long they have been in business.
- Payment methods: Be wary of websites offering only untraceable payment options like cryptocurrency or wire transfers. Reputable businesses provide secure and established payment options. Always use a credit card so that you can dispute any transactions that are illegitimate.
- Don’t click anything! Don’t click links or download documents. Install firewalls, antivirus programs, update security settings, etc. Companies like Endpoint offer those services, monitor devices and help guard against viruses, malware and other issues that could jeopardize client data. Do not wire deposits or any payments without establishing that it is a legitimate company. Meet the representative or owner at the property before sharing any personal or financial information. Fully vet representatives or owners using tools such as Forewarn to confirm their identity, to determine if there are any criminal convictions, bankruptcies, foreclosures or other public record data, conduct a social media search and background research.
So sad that so many folks are using any talents they have in such a rotten way!!!