California Real Estate Fraud-Prevention Checklist
By JC Pacific Corp Published 2026-09-01 Last professionally reviewed: September 2026
Real estate fraud prevention requires multiple layers: secure communication, independent verification, identity review, payment controls, title monitoring, and immediate response to suspicious activity.
Secure your accounts
- Use unique passwords
- Enable multifactor authentication
- Update devices and software
- Review email forwarding rules
- Secure recovery accounts
- Avoid unsecured public Wi-Fi
- Protect transaction details on social media
- Use approved document portals
Verify professionals and communications
- Confirm licenses through official sources
- Confirm brokerage affiliation
- Save verified telephone numbers
- Examine complete email addresses
- Verify unexpected links independently
- Question changes in tone or procedure
- Never rely solely on caller ID
- Escalate urgent or secret requests
Protect funds
- Learn the authorized payment process early
- Verify wiring instructions independently
- Confirm recipient and account details
- Treat every change as a warning
- Never share security codes
- Do not allow remote access to banking devices
- Confirm receipt through the established process
- Preserve transfer confirmations
Protect sellers and property owners
- Verify identity and authority
- Review title and ownership
- Use enhanced procedures for risk patterns
- Confirm proceeds instructions
- Monitor vacant and absentee-owned property
- Enroll in official county recorder alerts
- Investigate unexpected listings
- Protect signatures and identification
Prepare remote and international clients
- Identify acceptable IDs
- Confirm translation needs
- Plan notarization early
- Verify entity and trust authority
- Use secure document delivery
- Confirm international banking procedures
- Explain fraud warnings in the client's language
- Do not rush unfamiliar signers
If fraud is suspected
- Stop the transfer
- Contact the bank immediately
- Notify authorized transaction professionals
- Preserve evidence
- Secure compromised accounts
- Report wire fraud to IC3.gov
- Contact appropriate law enforcement
- Notify regulators when applicable
- Obtain legal advice
- Do not pay a recovery scammer
Frequently Asked Questions
Can fraud be completely prevented?
No system can eliminate every risk, but consistent controls can reduce exposure and improve response.
What is the most important wire rule?
Independently verify every instruction before sending money.
What is the most important seller rule?
Confirm both identity and legal authority rather than relying on one document or public-record match.
Educational information
This checklist provides general education and does not guarantee prevention, detection, recall, reimbursement, or recovery.
Review this checklist with buyers, sellers, staff, interpreters, and authorized transaction professionals at the beginning of every transaction.
Wire-fraud warning
Always verify wire instructions by telephone using a known, independently confirmed number. Never rely on email instructions alone. If you suspect fraud, contact your bank, escrow, your agent and law enforcement immediately.
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JC Pacific Corp is an Irvine-based Southern California brokerage helping buyers navigate offers, escrow, and financing. Tell us what you are looking for and we will point you to current options across the region.
A note on legal advice: These guides provide general, educational information about California real estate practice. They are not legal advice and do not create an attorney-client relationship. Mortgage information is general education, not individualized lending, tax or legal guidance. For advice about your specific offer, contract, closing or financing, consult a qualified California real estate attorney and a qualified mortgage professional.