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77 March 2025 J O U R N A L March 2025 » 47% of purchasers and sellers, educa- tion begins at the first meeting, but for most customers, it occurs too late in the process. Too Many Consumers Are Falling Victim There are far too many fraud vic- tims among American consumers who spend their hard-earned money before, during, and after the homebuying pro- cess. During the closing process, more than 1 in 4 (26%) of buyers and sellers said they received shady or deceptive messages. Almost 1 out of every 20 (4.7%) homebuyers and sellers said they had been a victim. But hold on, wait a minute. Who's attempting these fraudulent transac- tions? Unfortunately, real estate agents were the most frequently impersonated professionals during a fraud attempt; according to 58% of victims, their agent appeared to be the source of suspicious communications. The next most com- mon impersonation, according to 41% of respondents, was their settlement agent or title agent. Remarkably, 34% of respondents said that loan officials were routinely impersonated in these frauds, despite the fact that they have no part in direct- ing the money transfer during a closing. This demonstrates how little customers know about the roles played by each party in a real estate transaction and what to anticipate from it. If a consumer suffers a loss from real estate wire fraud, the methods used to recover funds and the experiences of vic- tims differ greatly. Victims who are un- sure of who to turn to ask for assistance from anyone in their immediate vicinity, including their bank, title firm, lawyer, or law enforcement. There is more stress and a worse chance of healing in the absence of a consistent procedure or assistance. Nevertheless, 22% of victims choose not to notify federal law enforce- ment of the crime. It is evident that buy- ers encounter considerable complexity in both "normal" real estate transactions and the most catastrophic situations. Consumers Weigh in on Educa- tion, Past Experiences Q: Did you receive any suspicious or fraudulent communications during your closing process? A: Yes, and I became a victim. States with highest rate of consumers who fall victim: • Massachusetts: 14% • Florida: 10% • New York: 10% • Michigan: 8% • South Carolina: 8% Q: When did they [real estate profes- sional] first tell you about wire fraud? A: In our first meeting or consultation. Top five states that most often edu- cate from the start: Alabama: 70% Tennessee: 68% Oklahoma: 62% Mississippi: 57% Massachusetts: 55% States that least often educate from the start: Iowa: 8% Nebraska: 25% Arizona: 31% Utah: 32% Minnesota: 35% Consumer Education, Prevention, & Age Factors While there is a lot more for consum- ers to learn and protect themselves from fraud, experience counts. Consumers who are making their first real estate purchase are particularly vulnerable. Compared to seasoned buyers and sell- ers, these "first-timers" are three times more likely to become victims of wire fraud during the closing process. Educat- ing first-time buyers and sellers about the hazards should be a special priority for real estate agents. Experience also influences who a consumer seeks out for recovery