$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
condo presale deposit scam
Scammers advertise presale units in condo developments that are either nonexistent or not affiliated with the real developer, collecting reservation deposits that vanish.
“HOA scam”
↑ 27.3%Key indicators
Usually targetsProperty buyers
Often hitsTech workers and developers
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
Scammers create professional websites advertising presale units in desirable neighborhoods, sometimes cloning real development projects.
2
Buyers are pressured to submit reservation deposits quickly before units sell out.
3
The deposits are collected into accounts controlled by the scammers, and the fake development disappears.
What to do first
Verify the developer's identity through your city's building permit office and state real estate commission.
Related terms
fake condo presalenew development deposit fraudphantom condo listingHOA and condo scamsWebsiteRisingProperty buyersCondo ownersTech workers and developersReal estate professionals and homebuyersOnline shoppersUnited StatesCanadaAustraliafake condo presalenew development deposit fraud
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Wei, 35, a property buyers, encountered what appeared to be a legitimate hoa and condo scams situation while using Website. Scammers create professional websites advertising presale units in desirable neighborhoods, sometimes cloning real development projects.
Step 2
What happened next was calculated: Buyers are pressured to submit reservation deposits quickly before units sell out.
Step 3
The pressure escalated quickly: The deposits are collected into accounts controlled by the scammers, and the fake development disappears.
The outcome
Wei realized something was wrong when presale prices are significantly below market rate for the area. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Verify the developer's identity through your city's building permit office and state real estate commission. Wei's experience shows why presale prices are significantly below market rate for the area and the developer's website was recently created and has no verifiable track record are the clearest early warning signs.
How to identify it
- Presale prices are significantly below market rate for the area
- The developer's website was recently created and has no verifiable track record
- Deposits must be sent to a personal bank account rather than an escrow account
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Verify the developer's identity through your city's building permit office and state real estate commission.
- ✓Ensure all deposits go into a regulated escrow account held by a licensed title company.
- ✓Research the development address, permit history, and developer's previous projects before sending money.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The FBI IC3 reported that real estate fraud, including deposit scams, generated over 145 million USD in victim losses in 2023.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Verify the developer's identity through your city's building permit office and state real estate commission.
- ✓Ensure all deposits go into a regulated escrow account held by a licensed title company.
- ✓Research the development address, permit history, and developer's previous projects before sending money.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The FBI IC3 reported that real estate fraud, including deposit scams, generated over 145 million USD in victim losses in 2023.
FBI IC3 2024
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Property buyers, Condo owners
Geographic concentration
United States, Canada, Australia
Primary channel
Website — HOA and condo scams
Why this group is vulnerable
Property buyers are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The FBI IC3 reported that real estate fraud, including deposit scams, generated over 145 million USD in victim losses in 2023.
Source notes
- FBI IC3 2024
Frequently asked questions
Common questions about condo presale deposit scam
How does the condo presale deposit scam work?+
Scammers create professional websites advertising presale units in desirable neighborhoods, sometimes cloning real development projects. Buyers are pressured to submit reservation deposits quickly before units sell out. The deposits are collected into accounts controlled by the scammers, and the fake development disappears.
What are the warning signs of condo presale deposit scam?+
Presale prices are significantly below market rate for the area The developer's website was recently created and has no verifiable track record Deposits must be sent to a personal bank account rather than an escrow account
What should I do if I encounter condo presale deposit scam?+
Verify the developer's identity through your city's building permit office and state real estate commission. Ensure all deposits go into a regulated escrow account held by a licensed title company. Research the development address, permit history, and developer's previous projects before sending money.
Who is most at risk for condo presale deposit scam?+
This scam primarily targets Property buyers, Condo owners. It is most commonly reported in United States, Canada, Australia and typically appears on Website.
Is condo presale deposit scam on the rise?+
condo presale deposit scam is currently on the rise with growing reports. It has been reported across US, CA, AU. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
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