Real Estate Fraud: Fake Listings and IBAN Changes

Short answer: Real estate fraud in remote home purchases usually happens in two ways: fake listings asking for a deposit for a property that does not exist or belongs to someone else, and fraudulent emails sent close to the payment date claiming that the bank account has changed. According to the Internet Crime Complaint Center of the U.S. Federal Bureau of Investigation (FBI), real estate-related email fraud reports increased by 27 percent between 2020–2022, while losses increased by 72 percent. The most effective way to protect yourself is to verbally confirm every payment instruction through a channel independent of email, using a phone number you already know.

This article has been prepared for buyers who will send a deposit, down payment or installment to buy a home in Cyprus, and who manage their transactions via email and messaging applications. We explained the banking side of money transfers, namely channels, exchange rate risk and receipt records, in our article money transfer when buying a home in Cyprus; here, we focus on digital fraud risks and protection methods.

Why is remote home buying targeted?

Someone buying a home from abroad corresponds with the seller, real estate consultant, lawyer and bank for months by email and messages. The amounts are high, payments are often made by international wire transfer, and the buyer does not know most of the parties face to face. Fraudsters exploit exactly these three weaknesses: the correspondence is digital, reversing the payment is difficult, and the buyer has difficulty verifying the other party.

In a public service announcement published in 2023, the FBI's Internet Crime Complaint Center (IC3) stated that reported losses arising from real estate-related business email compromise (BEC) reached 446.1 million dollars in 2022. According to the announcement, fraudsters infiltrate email accounts and monitor the transaction, then send fake instructions changing the payment method or bank account; buyers, sellers, lawyers and real estate consultants are among the targets. Although this data is from the U.S., the method is universal and is also seen in international purchases.

Most common types of real estate fraud

Real estate fraud can appear in different forms. The table below summarizes the most common types, warning signs and precautions to take:

How can you identify an IBAN change email?

The scenario that becomes most costly in a remote purchase is a fake payment instruction arriving in the middle of a genuine transaction. Because the fraudster has monitored the correspondence for weeks, they know the transaction details; their email may include the correct names, the correct amount and even the company's logo. If you see any of the following signs, stop:

• Account change: A new IBAN is provided with explanations such as “we have changed our bank” or “use this account due to an audit”.
• Time pressure: Urgent phrases such as “if it is not paid today, the reservation will be cancelled”.
• Address difference: A one-letter change, a different extension or a free email service in the sender address. On mobile, open and check the full address behind the sender name.
• Recipient name mismatch: The name of the account holder is not the same as the seller or company title in the contract.
• Avoiding phone calls: The other party insists only on written communication.

IC3's advice is also in this direction: confirm every change in account or payment information through a separate channel or with two-factor authentication, carefully check links and domain names, and never share your login details by email.

The same method is not limited to email. On messaging applications, a new account opened with a familiar profile photo and name may request payment by saying “I changed my number”. With the spread of artificial intelligence tools, phone calls that imitate a person's voice have also become technically possible. For this reason, rely not on an incoming call for confirmation, but on a call you initiate to a saved number; if necessary, agree in advance with the other party on a verification question known only to the two of you.

Pre-payment verification checklist

Applying the steps below before every deposit, down payment and installment payment takes a few minutes, but reversing an incorrect transfer is often not possible:

1. Take account details from the contract: The account to be paid should be included in the sales contract or in written instructions approved by your lawyer.
2. Call the known number: Take the other party's phone number not from the signature in the email, but from your first meeting or the official website, and have the account verbally confirmed.
3. Small test transfer: For large amounts, first send a small amount and verify by phone that it has been received.
4. Inform your lawyer: Before each payment, have your lawyer confirm the amount and the account. For choosing a lawyer, you can read our article how to choose a real estate lawyer in Cyprus.
5. Fill in the description field: Write the contract number and independent unit information in the transfer description; keep the receipt.
6. Request a receipt: After each payment, request a company-stamped or official receipt.

Take precautions on your own side as well: protect your email account with two-factor authentication, do not carry out banking transactions on shared networks, and do not share transaction details on social media during the purchase process.

How to protect yourself from fake listings

Fake listings usually come with a price clearly below the market, professional-looking photos taken from other listings, and wording that creates urgency. The seller may say, “I am abroad, I will send the key after the deposit.” The following steps are effective against such listings:

• Scan the photos with visual search tools; if the same photo appears in another city or another listing, stop.
• View the home through a live video tour, with shots directed by you.
• Have your lawyer verify the seller's identity and ownership from official records. We explained how the title deed search is carried out in our article TRNC title deed search, mortgage and attachment.
• Before paying a deposit, request a written reservation document and refund conditions.

You can find the general criteria for evaluating listings in our article what to look for in Northern Cyprus (TRNC) home listings.

Digital signatures, powers of attorney and document security

In remote purchases, documents inevitably circulate digitally, but not every digital document provides the same assurance. An image of a signature added to a scanned PDF is not the same as an electronic signature based on a qualified electronic certificate. In the TRNC, the legal framework for electronic signatures is regulated by a separate law; ask your lawyer in which transactions electronic signatures are accepted and which transactions must be carried out before a notary or official authority.

A power of attorney is an especially sensitive document. A broadly drafted power of attorney can cause serious harm in the hands of a malicious person. It is important that the authorities in the power of attorney are clearly limited and that it is given only to a lawyer you trust; details are in our article buying a home in Cyprus by power of attorney.

When corresponding with companies, note the official communication channels from the outset. Find the contact details of the company you work with yourself from the company's own official website, not from the signature in an email you receive; do not process a payment instruction from a different address or number without confirming it through these channels.

What should you do if you realize you have been defrauded?

Speed is everything. IC3 also emphasizes in its announcement that time is critical. Follow this order:

1. Call your bank immediately and request a recall of the transfer; ask them to notify the recipient bank.
2. File a complaint with the law enforcement authorities of your country and of the TRNC; keep all emails, messages and receipts.
3. Inform your lawyer and the other parties to the transaction through genuine communication channels.
4. Change your email password, enable two-factor authentication, and check whether a forwarding rule has been defined in your account.

Frequently asked questions

At which stage does real estate fraud happen most often?

The riskiest moments are the deposit stage and the days when large payments will be made. Fake listings usually ask for a deposit, while email fraud occurs by sending fake account details before the down payment or final payment. Verbally confirming the account details through a known phone number before every payment greatly reduces this risk.

What should I do if I receive an IBAN change email?

Do not make a payment and do not reply to the email. Call the other party not from the number in the email, but from a number you previously knew or one listed on the official website, and ask whether the change is real. Inform your lawyer as well. A genuine account change can easily be verified with verbal confirmation and a written document.

What should I check before sending the deposit?

Verify that the home actually exists by live video, and verify the seller's ownership through a lawyer from official records. Request a written reservation document and refund conditions, and make the payment only to the account written in this document and registered in the name of the seller or company. Be suspicious of prices far below the market and offers that create urgency.

Can money sent to the wrong account be recovered?

Sometimes it can, but speed is the determining factor. As soon as you notice, call your bank and request a recall of the transfer, and apply to law enforcement authorities. The chance of a refund is higher in notifications made before the money is withdrawn from the recipient account. Keep all correspondence and receipts.

Can a home be bought with an electronic signature?

Some correspondence and documents in the sales process can be handled electronically, but official procedures such as title deed transfer are subject to specific procedures and mostly require a power of attorney or a transaction before an official authority. Ask your lawyer before the transaction which document will be valid with an electronic signature.

To plan your payment steps and communication channels securely, you can contact the Akol Global team; let us answer your questions through our official channels.

This article is for informational purposes only; it does not replace legal, tax or financial advice. Last updated: October 2026.