Weekly Scam Alert: Fraudsters Are Tricking Homeowners Into Signing Away Their Homes
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Scammers are preying on Americans struggling to make their mortgage payments, leading officials around the country to warn homeowners as foreclosures rise. While the offers may sound like a rescue plan — a loan modification, a way to reverse a sale or a promise that you can stay in your home if you just sign the right paperwork — these so-called 'home savers' are actually trying to steal your money and equity.
The timing makes this type of scheme especially predatory. An ABC News analysis of property data found that foreclosure filings nationwide jumped 21% in the first six months of 2026 compared with the same period last year. Foreclosure filings are public, which makes it easy for scammers to target people who are already under financial pressure.
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In one Arizona case, an older homeowner dealing with dementia allegedly sold his property to a business called "Arizona Helping Hands," ABC News reported. His daughter fought to get the house back, but the family ultimately lost up to $150,000 in equity and legal fees before they were able to sort out the situation. An Indiana woman told a local TV station that she lost $9,000 after paying a company that promised to help lower her mortgage payments. Meanwhile, a couple in Orlando, Florida received a letter falsely claiming their house had already been foreclosed on and sold. It offered to help them reverse the sale and stay in the home.
If you receive a letter like that, don’t call the number on it. Instead, contact your lender directly and check your county property appraiser’s website to confirm whether you’re still listed as the owner. And if you’re behind on your mortgage, do not engage with anyone who demands upfront fees or pressures you to act immediately, especially if they asks you to sign over your home's deed.
Other current scams to watch out for
AI sob stories
Fraudsters are using artificially-generated videos to tug at buyers’ heartstrings through emotional stories of struggling kids or businesses. In one viral example shown on NBC News an AI-generated persona called “Jaden Knott” appears to cry while saying he is mocked for crocheting handbags. His videos drew nearly nine million Facebook views, and at least two shoppers told NBC they lost between $50 and $100 after believing they were supporting a real young creator.
The reason this type of scam works is clear enough: We feel bad for the person on screen and want to contribute to their success. But that person may not exist, and the product that is promised may never arrive. In the “Jaden” case, cybersecurity expert Yoav Keren flagged clues that hinted at the presence of AI, such as garbled text in the videos and a suspicious page manager who was traced back to Lithuania.
Before buying anything from a social media ad, research the company or creator in question by reading independent reviews and looking for their contact information and refund policies. Disregard the seller if they push you to pay through unorthodox means, such as cryptocurrency, a peer-to-peer app or an unfamiliar website.
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Fake voucher postcards
Watch out for postcards claiming you qualify for free gas and grocery cards. The Better Business Bureau (BBB) says it’s seeing multiple reports from people who received mail promising valuable rewards, including one Georgia resident who reported a postcard that showed $309.64 in gas and grocery vouchers was being held in his name.
The postcards, which may include official-looking barcodes and tracking numbers to add a false sense of credibility, tell recipients to call a number or visit a website to claim their money — that's where they get you. You will be asked to pay a small fee in exchange for your reward. But after providing your payment information, unauthorized charges will start showing up on your account or you may even be unwittingly enrolled in a monthly subscription program.
In one report cited by BBB, a woman said her sister agreed to a $5 processing fee and was immediately charged another $46, for a total loss of $51. That may not sound like a huge amount, but it's part of the scam’s design. Small charges may seem relatively harmless at first glance despite the fact that they can add quickly over time.
The BBB says to remember that legitimate prizes don't require you to pay first and to never provide payment information under pressure. If you already gave your information to one of these mailers, regularly check your bank or credit card statements and report any suspicious charges right away.
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The most common types of scam you should know
Scammers are constantly upping their game, coming up with new and exciting ways (for them) of fooling their targets. AI-powered scams are one example of this; the technology is being used to reach a larger number of people with increasingly more convincing schemes
But some tricks never run out of style. Most scams fall into a handful of familiar patterns, and many long-standing schemes are still a threat today. They’ve just evolved to better fit today’s digital landscape
- Imposter scams: Scammers often pose as trusted figures such as government agencies, banks, employers and even friends or family to pressure victims into sending money or sharing personal information
- Phishing and spoofing scams: These scams use emails, texts or phone calls that look like they’re from legitimate organizations. The goal is to trick you into clicking a malicious link, downloading malware or handing over sensitive information
- Online shopping scams: Fraudsters can create fake online stores or listings with hard-to-find items at unusually low prices. After you pay for an article, what you end up getting might be counterfeit — or it may never arrive in the first place
- Investment scams: This type of scam often arrives with promises of high returns from crypto, forex or other “exclusive” opportunities. Many involve long-term grooming tactics in which victims are encouraged to invest more over time before losing everything
- Romance scams: Some scammers try to get into your pocket through the heart. They build a relationship with you on dating apps or social media, then convince you to give up money and assets by fabricating emergencies or investment opportunities
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What to do if you’re the target — or victim — of a scam
No one is immune to scams or fraud, but a few consistent habits can reduce their danger and the damage they cause
For starters, be skeptical of unsolicited messages, especially those creating fear or urgency. This might look like an email from your bank threatening to close an account, a text from an online marketplace saying you’ll lose a discount or a call from the IRS claiming they’ll report you to the authorities unless you “act now.”
Scammers love to use this sort of language because it puts you on the spot, which they expect will move you to action
Always verify any requests from an organization by cross-checking with its official phone numbers, email or website. And don’t click any links, download attachments or respond to messages you suspect may be fraudulent. A legitimate organization will not pressure you for instant action or secrecy
Now, if you’ve already sent financial information or money to someone you suspect is a scammer, you’ll need to take a few steps to protect your data and possibly get your money reimbursed. Contact your bank, credit card issuer or payment platform immediately and attempt to stop or reverse the transactions. Make sure to change any relevant passwords and enable multi-factor authentication to safeguard your accounts, too.
Reporting a scam might also help protect others. You can file a report with the Federal Trade Commission and with local authorities at your nearby police department or sheriff’s office. Identity theft victims should also consider temporarily freezing their credit
Lastly, review your financial statements and credit reports regularly, keep your software updated and limit how much personal information you share online. Scammers often rely on publicly available details to make their schemes more convincing