Fraud Prevention Protocols

Defense Playbook Against AI-Powered Scams

AI makes fraud easier and more convincing. These protocols protect you and your clients.

The New Threat Landscape

What AI enables criminals to do:

Clone voices from short audio samples
Generate convincing fake documents
Write personalized phishing emails
Create realistic fake video/photos
Impersonate anyone with minimal effort

Your defense: Verify everything important through a second channel.

The Golden Rule

Out-of-Band Verification

When something important happens, verify through a DIFFERENT channel:

If You Receive...	Verify By...
Email about wire instructions	Calling known number (not from email)
Text requesting urgent action	Calling them directly
Voicemail with urgent request	Calling back on number you already have
DocuSign or e-signature request	Confirming via separate communication

Never verify using contact info provided in the suspicious message itself.

Wire Fraud Prevention

#1 real estate fraud threat: Fake wire instructions

Your Protocol:

Before closing:

Give clients wire instructions in person or via verified call
Tell them: "We will NEVER change these instructions by email"
Establish a code word or verification question

At wire time:

Client should CALL title company directly (number from their own records, not email)
Verify exact account details verbally
Confirm amount and recipient name

Red flags:

"Wire instructions have changed"
Urgent/last-minute changes
Email from similar-looking address
Pressure to act immediately

Motto: "If it involves money, verify by phone."

Email Security

Phishing Recognition

AI-powered phishing is better. Old tells (bad grammar, obvious scams) are gone.

New tells to watch:

Urgency that doesn't match the situation
Requests that skip normal process
"Don't tell anyone" or secrecy requests
Slight variations in email addresses
Links that look right but aren't

Protection Steps:

Hover before clicking — see where links actually go
Check the sender — look at actual email address, not just display name
Verify requests — especially financial or sensitive ones
When in doubt, call — use a number you already have

Voice Cloning Defense

AI can clone voices from 10-30 seconds of audio.

The Safe Word Protocol

Set up with clients and family:

Choose a word/phrase only you both know
If they receive an urgent call "from you," they should ask for it
If the caller can't provide it, hang up immediately

Example:

Safe word: "Purple elephant"
Script: "Before we proceed, what's our word?"
If wrong or confused: "I'll call you right back" → Hang up → Call their real number

Voice Clone Red Flags:

Unusual urgency
Requests you'd never normally make
"Don't verify this with anyone"
Strange audio quality or delays
Caller won't engage in normal conversation

Document Fraud Prevention

AI can generate convincing fake:

Pre-approval letters
Proof of funds
Pay stubs
Bank statements
Identification documents

Verification Protocol:

For buyer pre-approvals:

Call the lender directly (look up number independently)
Verify the borrower and approval amount
Get lender's direct contact for transaction

For proof of funds:

Request directly from institution if possible
Verify account holder name matches exactly
Call bank to verify (with client permission)
Watch for obvious manipulation

For all important docs:

Verify source independently
Be suspicious of perfect timing on "difficult" documents
When amounts are large, double-check

Image/Video Fraud

AI can create/modify:

Property photos
Damage documentation
"Proof" images
Video walkthroughs

Protection:

Request original metadata when possible
Be suspicious of perfect images in unusual situations
Verify in person when stakes are high
Use reverse image search for suspicious photos

Impersonation Defense

AI makes impersonation easy.

When Someone Claims to Be:

Another agent:

Look them up independently
Call their broker's office main line
Verify license number through state website

A client:

Use known contact information
Ask verification questions only they'd know
Be suspicious of "new number" or "lost phone" claims before major actions

An attorney/lender/inspector:

Verify through independent lookup
Don't use contact info they provide in initial message
Call main office numbers

Daily Security Habits

Every day:

Check sender addresses on financial emails (not just display names)
Verify before clicking links in unexpected emails
Use known numbers for callbacks, not numbers provided in messages

Every transaction:

Establish safe word with clients
Give wire instructions verbally or in-person
Remind clients about wire fraud
Verify all parties through independent channels

Every month:

Update passwords on key accounts
Review account access and permissions
Check for unusual account activity
Refresh team on security protocols

When Something Seems Wrong

STOP → VERIFY → PROCEED

STOP — Don't take immediate action, even if urgent
VERIFY — Use independent contact info to confirm
PROCEED — Only after verification, move forward

It's better to delay a legitimate request than to fall for fraud.

Teaching Clients

At first meeting:

"Before we get too far, let me share something important about fraud prevention. Criminals target real estate transactions. Here's what you need to know..."

Give them:

Title company's real phone number (from you, written down)
Clear instructions: "Never change wire info based on email"
Your safe word for sensitive communications
Permission to verify anything that seems unusual

At contract:

"Remember, wire instructions will come from [title company] only. If anyone sends changes by email, call me immediately. Here's the number to call if anything seems off..."

If Fraud Occurs

Immediately: Contact your bank to attempt to stop/reverse wire
Report: File reports with:
- FBI IC3 (ic3.gov)
- Local police
- Your broker
- Title company
Document: Preserve all communications
Notify: Inform affected parties quickly
Learn: Identify how it happened to prevent recurrence

Time is critical with wire fraud — act within minutes/hours for best chance of recovery.

Quick Reference Card

Print this and keep visible:

FRAUD PREVENTION CHECKLIST

□ Wire instructions given in person/by phone
□ "We never change wires by email" discussed
□ Safe word established
□ Client has title company's REAL phone number
□ Verify-before-action habit reinforced

When in doubt:
1. STOP — Don't act
2. VERIFY — Call a known number
3. PROCEED — Only after confirmation

From the AI Acceleration Resource Room