How to spot a property scam: The risks and red flags of international real estate deals

Cross-border real estate transactions are inherently complex. Differences in language, legal systems, regulatory requirements, and time zones can lead to confusion, delays, and gaps in communication.

These weak points create ideal entry routes for fraudsters, providing opportunities to intercept payments, impersonate parties, or manipulate key details.

Our previous real estate fraud prevention guide explored how property professionals can build a strong anti-fraud framework, from training and compliance to adopting secure technology.

In this follow-up, we focus on the practical side: the tactics used by fraudsters, the tell-tale warning signs, and how legal professionals, agents, and clients can spot and stop a scam before any damage is done.

The most common property scams

1. Payment interception fraud (including impersonation and invoice manipulation)

This scam involves fraudsters gaining access to legitimate email threads – or mimicking them – to impersonate a lawyer, buyer, or seller. Their goal is to intercept funds by sending altered bank details at the point of completion. In more sophisticated cases, scammers manipulate invoices or escrow instructions, changing just enough detail to divert funds unnoticed.

It’s alarmingly effective. Scammers can ‘spoof’ email addresses to make them seem legitimate, and invoice manipulation often slips past busy legal teams.

According to the FBI’s Internet Crime Complaint Center (IC3), real estate wire fraud losses totalled nearly $446 million in 2022, up from under $9 million in 2015. In Australia, the Australian Competition and Consumer Commission (ACCC) reported that Australians lost $16.2 million to payment redirection scams in 2023.

2. Fake listings and phantom properties

This is when scammers post properties they don’t own, or that don’t exist, using stolen photos from genuine listings. These scams often target international buyers or remote tenants unfamiliar with the local market, pressuring them to transfer deposits or fees quickly.

3. Title fraud

In title fraud, criminals assume the identity of the legal owner and attempt to sell or remortgage the property without consent, effectively stealing ownership on paper. They often target mortgage-free, unoccupied, or rental properties, which are common in cross-border portfolios.

HM Land Registry reported that it prevented the registration of 41 fraudulent applications in 2022-23, affecting properties across England and Wales worth an estimated £18 million.

4. Fake buyer scams

Some fraudsters pose as legitimate overseas buyers to gain trust and collect sensitive information from sellers or agents. Their goal could be identity theft, money laundering, or setting up a second scam, such as impersonating the seller later in the process.

5. Under-valuation scams by ‘cash buyers’

Here, fraudsters or unscrupulous cash-buying companies put forward unrealistically high cash offers for a property, often pending a valuation. They then repeatedly delay completion with excuses, dragging the process out.

Eventually they return with a much lower valuation, hoping the seller will accept rather than start over.

6. Rental-related scams

Rental scams often target remote landlords or international tenants. In one version, criminals post fake listings for holiday lets or long-term rentals, collecting deposits from multiple tenants before vanishing.

In another, applicants submit forged documents – such as payslips, references, or IDs – to fraudulently secure a tenancy. These scams surged post-pandemic, particularly in expat hubs like Lisbon, Barcelona, and Paris, and can lead to financial loss, legal issues, or unauthorised subletting.

How to spot a property scam: Key warning signs and red flags

International property scams don’t always come with flashing red lights. More often, they creep in through small inconsistencies, odd requests, or subtle pressure tactics. Fraudsters are experts at blending in until it’s too late.

But there are warning signs. Whether you're an agent, lawyer, buyer or seller, being alert to these red flags can mean the difference between a smooth transaction and a costly ordeal. Here’s what to look out for:

Unexpected changes to payment details – especially via email

One of the most common tactics is to hack or spoof a legitimate email chain and then, often at the last moment, send new bank details. If an estate agent or solicitor ever requests funds to a different account, pause immediately. Verify the change independently using known contact details – never through the same email thread.

Any property professionals handling client funds should warn their clients of this risk, giving them a clear point of contact should they ever need to confirm payment details.

Pressure to act quickly or bypass normal checks

Scammers thrive on urgency. You may be told that a deal is about to fall through, a buyer has pulled out, or funds must clear before a certain deadline. This pressure is designed to make you skip due diligence. Always question any request that short-circuits your usual process.

Inconsistent or unprofessional documentation

Typos, formatting issues, mismatched names or addresses, and low-quality scans are all red flags – especially in legal documents, ID copies, or bank forms. Fraudsters often mimic real templates or branding, so don’t let a familiar logo or layout lull you into a false sense of security. If anything looks unusual, verify it through a trusted contact, not just the sender of the document.

Reluctance to communicate by phone or video

Scammers often avoid real-time interaction, preferring to stick to email or messaging apps where they can control the conversation. If someone refuses a call or dodges identity verification steps, treat it as a warning sign.

Poor translation or odd phrasing

Emails with strange turns of phrase, inconsistent terminology, or unusual formality could point to a scam operation based overseas or using AI-generated content. Trust your gut – if it reads strangely, it may be a copy-paste job.

Bank detail anomalies

If a UK-based solicitor suddenly provides bank details for an overseas account, or if a beneficiary name doesn’t match the known party, don’t ignore it. It could be an attempt to redirect funds – a hallmark of payment diversion fraud.

Always err on the side of caution

While these are some common red flags, they’re just a starting point. As scams change and adapt, so too do the warning signs. The key thing is to trust your instincts. And if something feels off, err on the side of caution.

When in doubt, slow down. Scams succeed when teams are busy, distracted or working under pressure. Encourage a culture where colleagues and clients feel safe to question odd requests – even if they come from someone ‘trusted’. And always verify payment instructions through a second channel.

What to do if you suspect fraud

When something doesn’t feel right in a property deal, speed and clarity are key. The earlier a potential scam is flagged, the better the chance of stopping it before any money is lost.

Here’s what to do:

1. Stop the transaction immediately

If you’re about to send funds and receive new or unexpected payment instructions, pause. Take the time to double-check with a verified contact – no one reputable will pressure you into rushing. It's far better to delay than to risk irreversible loss.

2. Verify identities directly

Call the solicitor, agent or client using a phone number you’ve previously used or one listed on an official site. Avoid replying to the suspicious email directly – it may be spoofed or compromised.

3. Report the incident

If fraud is confirmed or strongly suspected, report it to the relevant authority as soon as possible. In the UK, that’s Action Fraud; in the US, it’s the FBI’s IC3. Many countries have specialist financial or cybercrime units, and early reporting can increase the chances of recovery.

4. Notify your internal compliance or legal team

Even if the fraud didn’t succeed, it’s important to assess how the attempt got through and what procedures might need tightening.

A strong internal culture around fraud prevention – where team members feel confident calling out concerns – can make all the difference in these situations.

How technology can help reduce risk

Even with the sharpest instincts and the best processes, no team is infallible. The pace and complexity of international property transactions mean human error will always be a factor, which is exactly where technology can provide a safety net.

Secure, purpose-built platforms are now essential for reducing fraud risk and tightening operational controls.

Here’s what to look for:

• End-to-end encryption – so sensitive communications and documents can’t be intercepted or altered.

• Multi-factor authentication (MFA) – to prevent unauthorised access, even if login credentials are compromised.

• Built-in AML and KYC checks – so you can verify counterparties quickly, even across borders.

• Real-time payment tracking – offering visibility at every step, so all parties know when funds have been sent, received, or delayed.

• Centralised audit trails – providing an accessible, immutable record of communications and actions, which is vital for dispute resolution or investigations.

Our Redpin Payments platform was designed specifically for international property payments, helping lawyers, agents, and home buyers/sellers send and receive large sums securely, with total visibility and control.

With tools like automated ID verification and bank-grade encryption, you can reduce the reliance on email and spreadsheets, dramatically reducing your exposure to fraud.

Final thoughts

Fraudsters thrive in complexity, and international property deals give them the perfect playing field. But with the right training, tools, and internal processes, legal and property professionals can protect clients and keep transactions secure.

Want to learn how Redpin Payments can help you reduce fraud risk and streamline cross-border payments? Speak to our team today.