R
eal estate agents face a new and insidious threat: cryptocurrency scams targeting them personally. According to the U.S. Secret Service, over 60 agents nationwide have lost $15 million in "pig butchering" schemes, where scammers gain trust, show fake profits, and disappear with the money. These scams often begin with a seemingly innocent contact, such as a wrong-number text or social media message, followed by building rapport and flaunting fake financial savvy.

    Cryptocurrency is volatile and unregulated, making it ripe for scammers. Agents like Teri Radcliff and Heather Samuel fell victim to these schemes, losing $200,000 and $815,000 respectively. They were initially discouraged by the police but eventually contacted the Secret Service, which is now investigating.

    Experts warn that agents are susceptible to these scams due to their involvement in large transactions. Mark Edgren, a network intrusion forensic analyst with the Secret Service, advises agents to be cautious when dealing with clients who seem too good to be true. William Pulte, director of the Federal Housing Finance Agency, has directed Freddie Mac and Fannie Mae to consider crypto as part of a buyer's holdings.

    To avoid financial disaster, experts recommend that agents trust their gut instincts and question unfamiliar investment opportunities. They should also verify sender identities and cross-check requests against known scam patterns. NAR has created educational resources, including a Window to the Law video and a Cryptoscam Awareness One Sheet, to help agents recognize red flags and best practices.

    Brokers can protect their agents by providing AI cybersecurity training and fostering a culture of constant vigilance. Scott Richard, CEO of Richard Realty, emphasizes the importance of verifying sender identities and slowing down when dealing with unfamiliar individuals. Agents must lead with safety, using tools like FOREWARN and Agent Alert Pro to screen clients and conduct due diligence.

    Aleks Ring, CEO of Aegis Resolve Consulting, recommends creating crypto forensics tool partnerships and using blockchain tracing tools to check addresses for scam flags. As these scams evolve, agents must stay alert and report crimes to the FBI at the IC3 website. Remember: what you don't know can cost you everything.