Seller impersonation fraud more than doubled since 2024

The recent surge in seller impersonation fraud is a concerning trend that construction businesses need to be aware of. With the share of firms reporting an attempt in the prior month more than doubling from 19% to 45%, it's clear that this type of scam is becoming increasingly prevalent. This type of fraud typically involves a scammer posing as a legitimate seller or supplier, often with the goal of securing payment or sensitive information.

In the construction industry, where projects often involve multiple stakeholders and large sums of money, the risk of falling victim to seller impersonation fraud is particularly high. Firms may be more vulnerable to these types of scams if they are working with new or unfamiliar suppliers, or if they are under pressure to complete projects quickly. As the industry continues to navigate the challenges of a rapidly changing market, it's essential that businesses remain vigilant and take steps to protect themselves from these types of scams.

To watch next: construction firms should be on the lookout for red flags such as unusual payment requests or unfamiliar suppliers. It's also crucial that businesses verify the identities of their suppliers and sellers, and implement robust security measures to prevent sensitive information from being compromised. As the frequency and sophistication of these scams continue to evolve, staying informed and adapting to new threats will be key to mitigating the risk of seller impersonation fraud in the construction industry.

Originally reported by housingwire.com. ConstructionNews adds analysis for real estate & property readers.