Key Findings from the Study
- Mortgage scams resulted in $1,380,053 in reported financial losses (2015–2025).
- Monthly mortgage scam reports have grown 407% since 2022, jumping from 14 to 71 per month.
- Only 12.24% of mortgage scam reports included financial losses—but the average financial hit was $16,829.
- Phishing made up 53.3% of all reported cases.
- Georgia had the highest financial losses: $423,550 from just 28 cases.
- Florida had the most scam reports overall, with 49 in the past year.
Mortgage fraud is quietly becoming one of the most financially damaging forms of cybercrime in the U.S.—and it’s scaling faster than the industry’s defenses.
An exclusive new study from BackOffice Pro analyzed 670 mortgage-related scam reports to uncover how scammers are targeting homebuyers, lenders, and agents. The focus: financial loss, scam volume, and scam type.
The findings are based on an analysis of 670 mortgage-related scam reports extracted from the Better Business Bureau Scam Tracker database (2015–April 2025) and provide one of the most comprehensive snapshots to date of fraud patterns in U.S. real estate.
“The data doesn’t just show who’s being scammed—it shows how and why they’re vulnerable in the first place,” says Rajeev Kumar, Executive Vice President at BackOffice Pro.
What Is The Most Common Type of Mortgage Scam?
Phishing scams dominate the landscape, accounting for 53.3% of all cases. These schemes impersonate title companies, lenders, or real estate agents and redirect wire transfers during the home-buying process.
- Phishing: 357 cases (53.3%)
- Other: 65 cases (9.7%)
- Fake Invoice: 35 cases (5.2%)
- Retail Business: 30 cases (4.5%)
- Advance Fee Loan: 25 cases (3.7%)
- Bank: 20 cases (3.0%)
- Credit Cards: 18 cases (2.7%)
- Debt Collections: 16 cases (2.4%)
- Worthless Problem: 15 cases (2.2%)
- Online Purchase: 14 cases (2.1%)
Which States Sees The Highest Losses From Mortgage Scams?
Georgia reported just 28 mortgage scams—but the total losses reached $423,550. That averages over $105,000 per victim. These numbers suggest highly targeted, high-value attacks.
The top states by total dollar losses are:
| State | Rank | Total Loss | Average loss | Number of Cases |
| Georgia | 1 | $423,550.00 | $105,887.50 | 28 |
| California | 2 | $360,435.00 | $2,024.17 | 18 |
| Florida | 3 | $141,309.00 | $11,775.75 | 49 |
| Pennsylvania | 4 | $107,830.68 | $17,971.78 | 32 |
| Texas | 5 | $60,191.00 | $30,095.50 | 30 |
“We’re seeing a pattern where scammers strike fewer victims—but extract more value from each success,” explains Kumar. “This isn’t random. It’s calculated.”
Which State Has The Highest Number Of Reported Mortgage Scams?
Florida had the most reported cases: 49. But total losses were $141,309, with an average of $11,775 per case—far below the Georgia average.
This suggests smaller-scale scams or greater public awareness that helps limit the financial fallout.
The highest number of reported cases come from:
| State | Rank | Total Loss | Average loss | Number of Cases |
| Florida | 1 | $141,309.00 | $11,775.75 | 49 |
| New York | 2 | $5,335.00 | $2,667.50 | 39 |
| Pennsylvania | 3 | $107,830.68 | $17,971.78 | 32 |
| Texas | 4 | $60,191.00 | $30,095.50 | 30 |
| Georgia | 5 | $423,550.00 | $105,887.50 | 28 |
“Florida’s high case volume is a concern—but it also tells us more people are reporting. That’s a good sign for future prevention,” says Kumar.
Are Mortgage Scams Becoming More Common?
Since 2022, monthly mortgage scam reports have grown by 407%—from 14 per month to a projected 71 in 2025. That level of acceleration marks one of the sharpest upticks in financial fraud within the real estate industry.
- 2015–2020: Averaged 3.8 to 9.7 reports/month
- 2024: 48/month
- 2025 (YTD): Extrapolated 70.8/month
This growth reflects increased digitization—and increased vulnerability.
“Real estate deals now move fast, often with remote teams. But most processes weren’t designed with cybersecurity in mind,” says Kumar.
What Forces Are Driving the Rise in Mortgage Scams?
The spike in mortgage scams from 2023 to 2025 hasn’t happened in a vacuum. A combination of economic pressure, digital transformation, and shifting borrower behavior has made the system more vulnerable to fraud—and more attractive to fraudsters.
- Tougher Housing Market Conditions: High interest rates, low inventory, and tighter lending have pushed some borrowers and professionals to stretch the truth or falsify documents to qualify.
- 8.3% Spike in Fraud Risk: In 2024, one in every 123 mortgage applications showed signs of fraud. Identity misrepresentation and fake transactions—like falsified down payments—are increasingly common.
- AI and Automation in Scam Tactics: Scammers now use AI to generate fake documentation, realistic phishing emails, and synthetic identities that can bypass basic fraud filters.
- Fintech Growth = More Vulnerabilities: The rise of digital lending has reduced in-person verification. That convenience has opened the door to new fraud entry points.
- Geographic and Demographic Shifts: States like California, Florida, and New York have seen double-digit increases in fraud risk, especially among first-time buyers and high-risk loan products.
“We’re not just seeing more fraud—we’re seeing smarter fraud,” says Kumar. “And it’s being driven by the same tech and market dynamics that are reshaping the mortgage industry itself.”
Between The Lines
This study suggests that mortgage scam risk isn’t just about how often scams succeed—but about how deeply they can derail transactions when they do.
In other words, trust gaps, urgent deadlines, and unverified digital communications are creating systemic vulnerabilities in real estate, even for experienced buyers.
Critics might point out that most mortgage scams are caught before money changes hands—and that’s true. But when scams succeed, the fallout isn’t small—it can cost buyers their entire savings.
“These aren’t isolated errors—they’re systemic vulnerabilities in a high-trust, high-value transaction system,” says Kumar. “And the gaps are widening.”
What’s Next
Closing the gap between fraud risk and prevention will require a more proactive, layered defense system. That includes:
- Mandatory multi-step verification for all wire transfers
- Consumer education around last-minute wire changes and phishing
- Stronger scam monitoring and alerting from financial platforms
“Mortgage scams don’t cause a public panic like major data breaches—but that’s exactly why they’re being overlooked. We mistake silence for security,” says Kumar. “We need to build defenses that anticipate where the vulnerabilities really are—not just where the headlines are.”
Methodology
This analysis is based on data extracted from the Better Business Bureau (BBB) Scam Tracker database, focusing on mortgage-related fraud reports across the United States and Canada through April 2025. The data underwent cleaning and standardization, including the removal of some significant outliers that was incorrectly categorized as a mortgage scam. State and province reporting formats were standardized, and scam type categories were normalized for consistent classification.
The analysis encompasses 670 verified reports, examining financial impacts, geographic distribution, and scam type patterns. While comprehensive, the study is limited to cases reported to BBB’s Scam Tracker, relying on self-reported information from victims. Financial loss data was available for approximately 12% of cases, providing insight into the monetary impact of successful scam attempts.
