Jadoti Limited Reviews is Jadoti.com a Scam or Should I Invest

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Ethtrade Review – Is Ethtrade a Scam or Legitimate? Read Before You Invest

by Alex Y · Published · Updated

You probably heard about Ethtrade through a friend or family member. You could have also seen an advertisement via one of the many social media platforms. Either way, you want to know whether Ethtrade is a scam or a legitimate Ethereum trading platform. Almost everyone thought Ethtrade is a legitimate company, it is not. Read this unbiased review before you invest.

Alert: Hong Kong’s financial regulator the Securities and Futures Commission (SFC) has updated its Alert List, which features the names of businesses that are unlicensed in Hong Kong and are believed to be or to have been, targeting Hong Kong investors or claim to have an association with Hong Kong.

Added to the SFC Alert List is the company Ethtrade Limited, operating at www.ethtrade.org.

According to the SFC, Ethtrade Limited’s Hong Kong address belongs to a secretarial company.

What is Ethtrade?

Ethtrade was founded in August 2020 by Eric Bondi and Michael Frendowski. The online trading platform (ethtrade.org) was launched in April 2020 and Ethtrade Limited (2398217) was then registered in July 2020 in Hong Kong.

Ethtrade is a classic Ponzi scheme that claims itself a trading company that deals with Ethereum and promise its investors up to 25% return on a monthly basis. The Return On Investment (ROI) does sound attractive for passive income.

Unfortunately, if you think it is a legitimate trading company, it is not true.

Ethtrade disguises as an investment company. From the official website, one can notice it is a High Yield Investment Program (HYIP) scam that aims to steal your hard earned money. Why? There are a few red flags I managed to pick up.

Ethtrade Review – Is Ethtrade a Scam or Legitimate?

#Red Flag 1 – New Site and Unknown Identity

The first red flag is the fact that Ethtrade is unwilling to share any basic company background with you. Their domain was registered in February 2020 and domain whois showed the setting is private but the website itself is registered in Nassau, Bahamas.

The registrant’s name doesn’t show up. I have tried to search for the person who is running the scene on the internet and nothing appears. This is a clear warning that the scammer does not want to reveal his or her real identity to avoid detection.

If a company is not upfront and willing share basic information about the company, then it is either a scam or not worth your time and money.

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#Red Flag 2 – Vague Investment Information

Obviously, there is a lack of details on how Ethtrade manages the money from the investors such as underlying insights, strategies, goals and techniques. Ethtrade tends to be vague about the strategies used in their program.

Moreover, they have given incorrect information about what Ethereum is and its benefits.

Most importantly, given that Ethtrade is an Investment Service, it should be regulated by the Securities and Futures Commission (SFC) of Hong Kong. There is, however, no record of the company in the public register.

Worst of all, Ethtrade is an unlicensed investment company according to SFC. They adopt names similar to legitimate financial institutions to confuse investors. That also means if you deal with a company like Ethtrade, which is not licensed by the SFC, you may not be protected by the regulatory framework enforced by the SFC.

This is your hard earned money, please do not be afraid to ask questions. A genuine financial professional will usually be happy to explain in detail the investment program they are marketing. Unfortunately, Ethtrade fails to do so.

#Red Flag 3 – High, Unsustainable 25% ROI

I have years of experience in investments. Historically, investments in most large corporate stocks return less than 10% per year. Usually, HYIP scams offer between 1 percent to 2 percent daily profits to its members.

The Ethtrade discloses their investment plans with no aim to hide its absurd and unsustainable returns. The provided calculator shows how it earns you a 25% ROI on monthly basis. To me, it is a total nonsense.

The funny thing is the investment plan returns a perfectly steady positive income percentage regardless of any external variable such as price volatility. Don’t you think this sounds a little fishy?

The ROIs that they claim on the official page clearly indicate that the investment is actually a Ponzi scheme or a junk bond that may never increase in value and has a high rate of default.

#Red Flag 4 – Removal of Partners’ Logos

In June 2020, ethtrade.org used to have logos of ConsenSys, Maker, Slock.it, Digix and EtherParty at the bottom of their home page. All of these companies have then requested them to take down the logos as they have never worked with Ethtrade.

#Red Flag 5 – Sign of Ponzi

Ethtrade offers offer referral commission program that looks really fancy. It is a good way to make extra money. I understand that most investment companies offer affiliate programs, but by looking at what they are offering, it does look like the entire “trading” system is sustained by it’s Ponzi scheme.

For a real investment company, this would equal giving away the entire (if not more) profit margin. This is a typical trick from most of the HYIP on the market. They offer to reward “referral fees” to investors for bringing in additional members.

That’s how a Ponzi scheme is operated. They recruit new members to sustain the pyramid scheme. They need “new” money to generate “returns” for the older investors by acquiring new investors.

It is a fraudulent investment scheme where they pay returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources.

It is a pyramid scheme that typically collapses in the end because it requires exponential increases in participants to sustain the business model. That simply means the scheme cannot go on forever.

Ethtrade probably still pays their investors for now as the program is still relatively new on the market. When there is insufficient investment fund from the new recruitment to the older investors, the entire structure will collapse.

Conclusion

I am not a fan of these HYIP programs. It is very rare that I recommend them because there are some things you need to know before you dive into this and throwing your hard earned money around.

Every investment carries some degree of risk, which is reflected in the rate of return you can expect to receive. If your money is perfectly safe, you’ll most likely get a low return. High returns entail high risks, possibly including a total loss on the investments.

Fraudsters like Ethtrade spends a lot of time trying to convince people that extremely high returns are “guaranteed” or “can’t miss.” They try to plant an image in your head of what your life will be like when you are rich.

Don’t ever believe it.

Based on my observation, it is very clear that Ethtrade is an investment scam.

I reviewed some other similar HYIP in my blog too like Coince, Amaing 5 and Capital7. They both work the same way as Ethrade.

Ethtrade works pretty similar to Forex Paradise, where the company claimed it was registered in Hong Kong and survived for three years. Many victims lost their hard earned money in October 2020 when they disappeared of all sudden.

Why do people keep joining HYIPs knowing that they are Ponzi schemes?

GREED!

All these Ponzi Schemes aim at people who want to get rich quick and do not want to take the tried & tested route of – hard work = success.

Most people want to make lots of money quickly and the legal options are often very limited (e.g. Lottery). When a product promises to give you exorbitant returns, people tend to believe it due to our greed.

However, most of the people end up losing their savings and hard-earned money.

I wrote an article on How to Invest Online Without Being Scammed. This should serve as a reference when you look for a legitimate investment company on the internet.

Rare Opportunity to x10 your investment

Etherparty is selling 40% of their “IPO” token in their presale and the token that is purchased at the price of $0.10 during the presale and public ICO (now). Tokens that are owned will be priced at $1 USD or the highest traded market price in the later stage. It is definitely a superb investment opportunity. Read more about this “IPO” on Is It Worth Buying FUEL Tokens Through Their ICO?

Please note that it is a capped token sale, which means the number of tokens for presale is limited. The presale will be closed once tokens are sold out anytime between now and the public crowdsale on 15 th September 2020.

Recommendation

Why get scammed by HYIP that only run away with your money and not putting your hard-earned money in a legitimate investment opportunity such as Bitcoin? The world is becoming ever more reliant on the internet.

So, really:It is no surprise that Bitcoin, a secure, global, and digital currency has claimed the interest of investors. Bitcoin is open to everyone and provides an exciting opportunity to delve into an entirely new asset class.

Bitcoins are scarce and useful.

Let’s look to gold as an example currency. There is a limited amount of gold on earth.

As new gold is mined, there is always less and less gold left and it becomes harder and more expensive to find and mine.

The same is true with Bitcoin.

There are only 21 million Bitcoin, and as time goes on, they become harder and harder to mine.

How to Invest in Bitcoins and Where to Buy

The difficulty of buying bitcoins depends on your country. Developed countries have more options and more liquidity.

Coinbase is the world’s largest bitcoin broker and available in the United States, UK, Canada, Singapore, and most of Europe.

Final Word

I don’t like the reliance on Ponzi scheme in order to make bad money. I do not believe in HYIP because they are too risky and most of them are not legitimate.

If you really want to make some investment, you could possibly look into legitimate companies such as Genesis Mining. It is a company that sells mining contracts for Bitcoin and Ethereum.

At the time of writing, Ethereum has just risen from $10 to $50 in March 2020. From this recent hike, I have made approximately 400% profit ($21,300) from Ethereum that I purchase from Coinbase. It is one of the most promising cryptocurrency as it has recently been recognized by a few big brands such as JPMorgan Chase, Cisco Systems, Inc, Bank of New York Mellon Corp, Microsoft, and other 30 big corporates to create a partnership know as the Enterprise Ethereum Alliance (EEA).

Read more about Ethereum in this post – What Is Ethereum and How to Make Money With Ethereum?

Ethtrade Review – Is Ethtrade a Scam or Legitimate? Read Before You Invest

by Alex Y · Published · Updated

You probably heard about Ethtrade through a friend or family member. You could have also seen an advertisement via one of the many social media platforms. Either way, you want to know whether Ethtrade is a scam or a legitimate Ethereum trading platform. Almost everyone thought Ethtrade is a legitimate company, it is not. Read this unbiased review before you invest.

Alert: Hong Kong’s financial regulator the Securities and Futures Commission (SFC) has updated its Alert List, which features the names of businesses that are unlicensed in Hong Kong and are believed to be or to have been, targeting Hong Kong investors or claim to have an association with Hong Kong.

Added to the SFC Alert List is the company Ethtrade Limited, operating at www.ethtrade.org.

According to the SFC, Ethtrade Limited’s Hong Kong address belongs to a secretarial company.

What is Ethtrade?

Ethtrade was founded in August 2020 by Eric Bondi and Michael Frendowski. The online trading platform (ethtrade.org) was launched in April 2020 and Ethtrade Limited (2398217) was then registered in July 2020 in Hong Kong.

Ethtrade is a classic Ponzi scheme that claims itself a trading company that deals with Ethereum and promise its investors up to 25% return on a monthly basis. The Return On Investment (ROI) does sound attractive for passive income.

Unfortunately, if you think it is a legitimate trading company, it is not true.

Ethtrade disguises as an investment company. From the official website, one can notice it is a High Yield Investment Program (HYIP) scam that aims to steal your hard earned money. Why? There are a few red flags I managed to pick up.

Ethtrade Review – Is Ethtrade a Scam or Legitimate?

#Red Flag 1 – New Site and Unknown Identity

The first red flag is the fact that Ethtrade is unwilling to share any basic company background with you. Their domain was registered in February 2020 and domain whois showed the setting is private but the website itself is registered in Nassau, Bahamas.

The registrant’s name doesn’t show up. I have tried to search for the person who is running the scene on the internet and nothing appears. This is a clear warning that the scammer does not want to reveal his or her real identity to avoid detection.

If a company is not upfront and willing share basic information about the company, then it is either a scam or not worth your time and money.

#Red Flag 2 – Vague Investment Information

Obviously, there is a lack of details on how Ethtrade manages the money from the investors such as underlying insights, strategies, goals and techniques. Ethtrade tends to be vague about the strategies used in their program.

Moreover, they have given incorrect information about what Ethereum is and its benefits.

Most importantly, given that Ethtrade is an Investment Service, it should be regulated by the Securities and Futures Commission (SFC) of Hong Kong. There is, however, no record of the company in the public register.

Worst of all, Ethtrade is an unlicensed investment company according to SFC. They adopt names similar to legitimate financial institutions to confuse investors. That also means if you deal with a company like Ethtrade, which is not licensed by the SFC, you may not be protected by the regulatory framework enforced by the SFC.

This is your hard earned money, please do not be afraid to ask questions. A genuine financial professional will usually be happy to explain in detail the investment program they are marketing. Unfortunately, Ethtrade fails to do so.

#Red Flag 3 – High, Unsustainable 25% ROI

I have years of experience in investments. Historically, investments in most large corporate stocks return less than 10% per year. Usually, HYIP scams offer between 1 percent to 2 percent daily profits to its members.

The Ethtrade discloses their investment plans with no aim to hide its absurd and unsustainable returns. The provided calculator shows how it earns you a 25% ROI on monthly basis. To me, it is a total nonsense.

The funny thing is the investment plan returns a perfectly steady positive income percentage regardless of any external variable such as price volatility. Don’t you think this sounds a little fishy?

The ROIs that they claim on the official page clearly indicate that the investment is actually a Ponzi scheme or a junk bond that may never increase in value and has a high rate of default.

#Red Flag 4 – Removal of Partners’ Logos

In June 2020, ethtrade.org used to have logos of ConsenSys, Maker, Slock.it, Digix and EtherParty at the bottom of their home page. All of these companies have then requested them to take down the logos as they have never worked with Ethtrade.

#Red Flag 5 – Sign of Ponzi

Ethtrade offers offer referral commission program that looks really fancy. It is a good way to make extra money. I understand that most investment companies offer affiliate programs, but by looking at what they are offering, it does look like the entire “trading” system is sustained by it’s Ponzi scheme.

For a real investment company, this would equal giving away the entire (if not more) profit margin. This is a typical trick from most of the HYIP on the market. They offer to reward “referral fees” to investors for bringing in additional members.

That’s how a Ponzi scheme is operated. They recruit new members to sustain the pyramid scheme. They need “new” money to generate “returns” for the older investors by acquiring new investors.

It is a fraudulent investment scheme where they pay returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources.

It is a pyramid scheme that typically collapses in the end because it requires exponential increases in participants to sustain the business model. That simply means the scheme cannot go on forever.

Ethtrade probably still pays their investors for now as the program is still relatively new on the market. When there is insufficient investment fund from the new recruitment to the older investors, the entire structure will collapse.

Conclusion

I am not a fan of these HYIP programs. It is very rare that I recommend them because there are some things you need to know before you dive into this and throwing your hard earned money around.

Every investment carries some degree of risk, which is reflected in the rate of return you can expect to receive. If your money is perfectly safe, you’ll most likely get a low return. High returns entail high risks, possibly including a total loss on the investments.

Fraudsters like Ethtrade spends a lot of time trying to convince people that extremely high returns are “guaranteed” or “can’t miss.” They try to plant an image in your head of what your life will be like when you are rich.

Don’t ever believe it.

Based on my observation, it is very clear that Ethtrade is an investment scam.

I reviewed some other similar HYIP in my blog too like Coince, Amaing 5 and Capital7. They both work the same way as Ethrade.

Ethtrade works pretty similar to Forex Paradise, where the company claimed it was registered in Hong Kong and survived for three years. Many victims lost their hard earned money in October 2020 when they disappeared of all sudden.

Why do people keep joining HYIPs knowing that they are Ponzi schemes?

GREED!

All these Ponzi Schemes aim at people who want to get rich quick and do not want to take the tried & tested route of – hard work = success.

Most people want to make lots of money quickly and the legal options are often very limited (e.g. Lottery). When a product promises to give you exorbitant returns, people tend to believe it due to our greed.

However, most of the people end up losing their savings and hard-earned money.

I wrote an article on How to Invest Online Without Being Scammed. This should serve as a reference when you look for a legitimate investment company on the internet.

Rare Opportunity to x10 your investment

Etherparty is selling 40% of their “IPO” token in their presale and the token that is purchased at the price of $0.10 during the presale and public ICO (now). Tokens that are owned will be priced at $1 USD or the highest traded market price in the later stage. It is definitely a superb investment opportunity. Read more about this “IPO” on Is It Worth Buying FUEL Tokens Through Their ICO?

Please note that it is a capped token sale, which means the number of tokens for presale is limited. The presale will be closed once tokens are sold out anytime between now and the public crowdsale on 15 th September 2020.

Recommendation

Why get scammed by HYIP that only run away with your money and not putting your hard-earned money in a legitimate investment opportunity such as Bitcoin? The world is becoming ever more reliant on the internet.

So, really:It is no surprise that Bitcoin, a secure, global, and digital currency has claimed the interest of investors. Bitcoin is open to everyone and provides an exciting opportunity to delve into an entirely new asset class.

Bitcoins are scarce and useful.

Let’s look to gold as an example currency. There is a limited amount of gold on earth.

As new gold is mined, there is always less and less gold left and it becomes harder and more expensive to find and mine.

The same is true with Bitcoin.

There are only 21 million Bitcoin, and as time goes on, they become harder and harder to mine.

How to Invest in Bitcoins and Where to Buy

The difficulty of buying bitcoins depends on your country. Developed countries have more options and more liquidity.

Coinbase is the world’s largest bitcoin broker and available in the United States, UK, Canada, Singapore, and most of Europe.

Final Word

I don’t like the reliance on Ponzi scheme in order to make bad money. I do not believe in HYIP because they are too risky and most of them are not legitimate.

If you really want to make some investment, you could possibly look into legitimate companies such as Genesis Mining. It is a company that sells mining contracts for Bitcoin and Ethereum.

At the time of writing, Ethereum has just risen from $10 to $50 in March 2020. From this recent hike, I have made approximately 400% profit ($21,300) from Ethereum that I purchase from Coinbase. It is one of the most promising cryptocurrency as it has recently been recognized by a few big brands such as JPMorgan Chase, Cisco Systems, Inc, Bank of New York Mellon Corp, Microsoft, and other 30 big corporates to create a partnership know as the Enterprise Ethereum Alliance (EEA).

Read more about Ethereum in this post – What Is Ethereum and How to Make Money With Ethereum?

Jadoti Limited Reviews: is Jadoti.com a Scam or Should I Invest?

The real estate industry is a sector that’s extremely profitable if done right. If you think about it, a house is the most expensive item that a person buys over his/her lifetime. Big money, big opportunities. However, on the same token criminals prey on the weak and use creative ways to make a lot of money by scamming victims all over the world, whether buyers, sellers or realtors.

Amongst the most notorious fraudulent practices on the market, we have already exposed and shared information about real estate investment scams, home buying scams, residential real estate tips and the Real Estate Agent Scam.

This week we caught up with a few fraud prevention experts and real estate professionals. We invited them to share new tips and expose some prevalent scams they’re aware of, which are happening now.

Here are 10 real estate scams that you need to avoid today:

1. Hackers Stealing Your Down Payment: Mortgage Closing Date

This scam is exposed on video by Jennifer Beeston from Guaranteed Rate Mortgage. Watch the video below to see the Mortgage Closing Date Payment Scam explained:

The same scam is exposed with different words by Robert Siciliano, fraud prevention expert with .

“A hacker could fool you into thinking he’s your agent and trick you into sending him money, which you’ll never get back. It’s so bad the FTC even sent an alert warning consumers that real estate agents email accounts are getting hacked.”, says Siciliano.

“Let’s say your realtor’s name is Bill Baker. Bill Baker’s e-mail account gets hacked. The hacker observes Baker’s correspondences with his clients—including you. Ahhh, the hacker sees you have an upcoming closing. The hacker, posing as Bill Baker, sends you an e-mail, complete with instructions on where to wire your closing funds. You follow these instructions. But there’s one last step: kissing your money goodbye, as it will disappear into an untraceable abyss overseas. This scam can also target your escrow agent.” –>

“It’s obvious that one way to prevent this is to arrange a home purchase deal where there are zero closing costs”, says Siciliano. “The scam is prevalent, perhaps having occurred thousands of times. It was just a matter of time until scammers recognized the opportunity to target real estate agents and their clients.

The lax security defences of the real estate industry haven’t helped. Unlike the entire financial industry who have encrypted communications, the real estate industry is a hodgepodge of free e-mail accounts and unprotected communications.”

In addition, Robert points out: “Realtors, who are so often on the go and in a hurry, frequently use public Wi-Fi like at coffee houses. Anyone involved in a real estate transaction can be hacked, such as lawyers”.

Recommended Read: When Your Renter Sells Your House To Someone Else

When it comes to preventing this particular scam, here are a few points that Siciliano suggests:

– Eliminate e-mail as a correspondence conduit—at least as far as information on closings and other sensitive information.

– On the other hand, you may value having “everything in writing,” and e-mail provides a permanent record. In that case, use encrypted email or some setup that requires additional login credentials to gain access to the communication.

– For money-wiring instructions, request a phone call. And make this request over the phone so that the hacker doesn’t try to pose as your Realtor over the phone.

– Any e-mailed money instructions should be confirmed by phone—with the Realtor and the bank to send the money to.

– Get verification of the transfer ASAP. If you suspect a scam, have the receiving bank freeze any withdrawal attempt of the newly deposited funds—if you’ve reached the bank in time, that is.

2. Real Estate Agents Assigning The Sales To Themselves

“I know a victim of a realtor who is scamming his buyers by taking advantage of sudden traumatic life events”, says Mariko Baerg from Bridgewell Group.

A buyer had purchased a house. Between the time it was a firm deal and the title transfer date he got in a severe car accident and could no longer work for the short term.

The realtor that was representing him had coerced the buyer into assigning the sale to the realtor himself for a discounted price because he fearfully convinced the buyer that he would have difficulties keeping his financing from the lender.

Suggested Read: Fake Owner Leasing Property

Assigning to yourself is a clear conflict of interest, the realtor did not try to market the assignment to anyone else, and the sale amount was $100,000 less than market value! He also forged the seller’s signature to convince the buyer that it was OK to assign the property.

The issue could be avoided by making sure you have a power of attorney lined up in the case that you have an accident, making your realtor show you comparables to confirm what market value is before transferring. Also, if you have a feeling there may be a conflict of interest always obtain legal counsel or receive a second opinion to determine what your options are.”, explains Berg.

Recommended Read: Buying Real Estate Leads from Realtor.com Scam

3. Arc Fault Breaker Swap Out Scam

This next fraudulent practice is exposed by Jeff Miller, co-founder of AE Home Group: “Arc fault breaker swap outs are a common scam I’ve seen in the flipping industry. Modern building code requires that electrical boxes contain arc fault breakers as opposed to traditional breakers in order to further prevent electrical fires.

While safer, these arc fault breakers can add upwards of $800 to the cost of the renovation. Following the issuance of a use and occupancy permit, some flippers will return to the home and replace these expensive arc fault breakers with the cheaper traditional breakers, adding profit to their bottom line.”, says Miller.

4. Real Estate News: Bait and Switch Scheme

Another fraudulent real estate practice is the “bait and switch” scheme, explained here by Lucas Machado, President of House Heroes: “The scam occurs when a prospective buyer offers an “above market value” price to a home seller. The seller – blown away by the high offer – excitedly signs on the dotted line.

Sadly, the unscrupulous buyer has no intention to purchase the property at this price.

Once the seller signs the contract, the seller may only sell to that buyer for a specified time (weeks to even months) for the buyer’s purported due diligence. When that time ends, the fraudster asks to extend the contract a few weeks to work out closing details. Sounding reasonable, the seller agrees to the extension blinded by the high offer.”, warns Machado.

“There are two impacts on the seller. The seller keeps paying taxes, maintenance, utilities, insurance and develops an emotional commitment to sell.

Here’s what happens in the bait and switch: the buyer comes back to the seller with an excuse as to why this price no longer works, requests a reduction to below market value, and threatens to cancel if their demand is not met. Stressed by passage of time and on-going costs, the frustrated seller agrees to the reduction.”

Machado offers a concrete example: “Our company had a scenario where we offered $185,000. The seller accepted a $220,000 offer. The “buyer” asked for extension after extension, for 12 months, and then the tired seller agreed to sale price $180,000. The victimized seller had on-going costs around $10,000 and lost approximately $20,000 by not accepting our offer a year ago.”

How can you avoid the bait and switch scheme?

a. Confirm proof of funds at time of executing the contract.

b. Do not grant unreasonable extensions or reductions.

c. Set expectations early on.

d. If extension or reduction is based on condition, request an inspector or general contractor report verifying claims.

Related Read: Rent to Own Homes Near Me Scam

5. Duplicated Listings

Leah Slaughter with OmniKey Realty warns about a scam constantly happening in the real estate business: the Duplicated Listings.

“We often see companies copy our legitimate rental listings and post on Craigslist for a much cheaper price. Unfortunately, many people fall for these fake listings and wire or overnight money to the owners of these fake listings and then cannot get access and eventually locate us and all we can do is refer them to the police.”, says Slaughter.

“When searching for a rental, do your research and make sure you are working with a reputable company or a licensed agent/broker. If a landlord says they are not local and cannot give you access to the property, that is an immediate red flag.”

6. Real Estate Lawyers: Fake Profiles

David Reiss from Brooklyn Law School warns about a new type of scam: impersonating real estate lawyers. “In this case, the scammer takes control of the proceeds of a real estate closing by impersonating one of the parties to the closing and redirecting proceeds to an account controlled by him/her. The criminal might impersonate the seller’s lawyer and instruct that the proceeds from the sale be redirected to a new account.”, says Reiss.

“All such changes should be confirmed by a phone call (to a number that you know to be valid!) to confirm that they are from the real seller.”

7. Fake Escrow Service Request

Nina Furseth, Engagement and Corporate Communications Analyst at RentHop shares her advice: “Real estate scams are likely to occur when the rental market begins to tighten around May when students and graduates begin work or school.

Regarding online rental scams, there are several big red flags to look out for such as if:

1. Western Union, Money Gram, or an “escrow service” is involved.

2. Poster is asking you to wire money before you see the apartment.

3. Price is too good to be true.

Must Read: Mortgage Modification Scam

Scammers are constantly evolving and with everything nowadays being so public, they can easily get their hands on official looking documentation such as license numbers from real estate agents, deeds, applications, and so on.

Be careful when looking for an apartment. Be smart and realistic, and if anything seems too good to be true, it probably is. More tips can be found in our study, Rental Scams and How to Avoid Them.” says Furseth.

RentHop also publishes a very interesting infographic, below:

8. Unlicensed Realtor Scam

The Unlicensed Realtor Scam affects both you and your realtor. Justin Lavelle, who is a Scams Prevention Expert and the Communications Director of BeenVerified, explains:

“In this scam, a so-called realtor sells property to a buyer. However, once a check is written for escrow, an unlicensed realtor deposits the money into their own account and not into the escrow account. Do yourself a favor and vet anyone you’re going to be working with, both your realtor and the one on the other end of the sale. A LinkedIn account doesn’t mean someone is trustworthy or a valid realtor, so do the homework. A person could have been a licensed realtor previously, but may now have an expired license.”, warns Lavelle.

9. Title Fraud

Lavelle also offers information about the title fraud: “This scam steals more than a deposit or fee, it involves identity theft. The scammers will fabricate documents to make it look like they are the property owner. Using these materials, the scammer will take out a new mortgage on the property.

With a secured loan, the false owner can take the cash and then leave the real owner with remaining payments. Prevent this by getting title insurance and safeguarding personal information. Purchasing title insurance offers financial protection from false impersonation and improperly recorded legal documents that a scammer may attempt to forge.”

10. Fake Realtor Sending You For A Viewing

One last real estate scam is brought to you by fraud prevention expert Sorin Mihailovici, producer of the Travel by Dart TV show: “Let’s say you find a property you really like. You phone the realtor who arranges to meet you there. On your way to the apartment, he calls and mentions he had a small accident and won’t be able to make it anymore. However, you shouldn’t worry much because he says the landlord will be there to show you around.

To make it up to you, the realtor promises to negotiate a lower price than what the landlord will give you. “Call me when you leave the house, don’t sign a lease right away,” he says. When you arrive at the house you find many other people interested in renting the same place.

Related Material: Copy of Deed Scam

The landlord gives you a price, but you want to negotiate a better deal. You call the realtor and work out a deal you’re happy with. Then you wait for him to confirm with the landlord. He phones you back shortly after and says the new price is okay. All you have to do is wire him the money for the first two months and you’re all set.

On moving day, you show up only to find someone else moving in. The realtor wasn’t a realtor at all; he just found the property online and reposted it with his own contact information. That’s how you called him in the first place. He sends several people at a time to generate a sense of urgency for the potential renters.”, warns Mihailovici.

Real Estate Scams: How To Report Them

Let your friends and family know about any real estate scam or questionable businesses by sharing their name in the Comments section below. You can also officially report the crooks to the Federal Trade Commission using the link below:

Other Mortgage Scams:

Watch the video below to see in action the Top 3 mortgage scams exposed:

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