Many were shocked when Elvis Presley's Graceland was listed for sale in May of 2024, including the Presley family. Naussany Investments and Private Lending posted a notice of foreclosure sale for the Graceland estate, stating the owner of the museum had failed to pay a loan.
This claim was later found fraudulent when no representatives from Naussany made a court appearance.
The FBI’s Internet Crime Complaint Center (IC3) has reported a rise in Business Email Compromise (BEC) schemes targeted toward the real estate industry. According to Forbes, in 2023, the IC3 responded to 9,521 real estate fraud schemes, resulting in losses exceeding $145 million.
The bold attempt to sell Graceland exemplifies Seller Impersonation Fraud (SIF), a scheme recognized by the FBI within the BEC category. SIF operations often involve using fake IDs, fraudulently listing properties, and crafting spoof emails to deceive buyers into making unauthorized payments.
Scammers commonly target properties without liens, posing as owners to enlist real estate agents. They often offer to sell these properties below market value for quick, cash transactions.
While these scams usually target vacant properties, the fraud attempt on Graceland exemplifies how bold these scammers are becoming.
SIF is increasingly problematic, with two in 10 title insurance companies reporting attempts in April of 2024 alone, according to a study by the American Land Title Association. A select group of Nashville-based title firms, including Wagon Wheel Title, has been tracking local properties targeted by fraud attempts. In 2024 alone, the group identified SIF connected to over 100 properties in the Nashville area.
No two scams are the same, and no property is safe–as proven by Graceland–but, some steps can be taken to avoid falling victim to scammers.
Here is a list of ways real estate agents can avoid real estate-related schemes and SIF:
- Request Multiple Forms of Identification: Ask for various IDs related to both the seller and the property, such as a license, passport, social security card, and a current utility bill or property payment receipt.
- Face-to-Face Meeting: Insist on an in-person meeting, as many scammers avoid direct contact, preferring phone or electronic communications.
- Test Property Knowledge: Verify the seller's legitimacy by asking detailed questions about the property that are not easily found in public records or online.
- Ensure Title Company Oversight: Have a reputable title company oversee the transaction to ensure the seller's legitimacy and integrity of the process, especially in validating wiring instructions.
- Use Trusted Notaries: Ensure notaries involved are arranged by the title company to maintain impartiality and authenticity in all documentation.
- Focus on Verification Over Speed: Emphasize thorough verification rather than speed during the disbursement process to prevent fraud.
Angie Lawless is an attorney and entrepreneur, co-owner of Wagon Wheel Title, which specializes in real estate closings and large-scale condo projects, co-host of the Climbing the Charts podcast, and co-author of the book Climbing the Charts: The Ascent of Nashville.
