$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
special assessment fraud scam
Fraudsters send fake special assessment notices demanding large one-time payments for fabricated building repairs or community improvements.
“HOA scam”
↑ 27.3%Key indicators
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
Scammers obtain condo association details from public filings and send convincing special assessment notices to unit owners.
2
The notices cite urgent structural repairs or code violations requiring immediate payment.
3
Payments are directed to accounts controlled by the scammers, often via wire transfer.
What to do first
Verify any special assessment by contacting your HOA board or attending the next board meeting.
Related terms
fake special assessmentbogus condo levyemergency repair assessment scamHOA and condo scamsMailRisingCondo ownersHOA membersUnited StatesCanadafake special assessmentbogus condo levy
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Christopher, 35, a condo owners, encountered what appeared to be a legitimate hoa and condo scams situation while using Mail. Scammers obtain condo association details from public filings and send convincing special assessment notices to unit owners.
Step 2
What happened next was calculated: The notices cite urgent structural repairs or code violations requiring immediate payment.
Step 3
The pressure escalated quickly: Payments are directed to accounts controlled by the scammers, often via wire transfer.
The outcome
Christopher realized something was wrong when a large unexpected assessment arrives without any prior board meeting discussion. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Verify any special assessment by contacting your HOA board or attending the next board meeting. Christopher's experience shows why a large unexpected assessment arrives without any prior board meeting discussion and the notice demands payment within days rather than the typical 30-90 day period are the clearest early warning signs.
How to identify it
- A large unexpected assessment arrives without any prior board meeting discussion
- The notice demands payment within days rather than the typical 30-90 day period
- No supporting documentation such as engineering reports or contractor bids is provided
- 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 any special assessment by contacting your HOA board or attending the next board meeting.
- ✓Request copies of the board resolution, engineering report, and contractor bids that justify the assessment.
- ✓Never wire money based solely on a mailed notice — legitimate HOAs provide multiple payment options.
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 reported that real estate and rental fraud resulted in over 145 million USD in losses reported to IC3 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 any special assessment by contacting your HOA board or attending the next board meeting.
- ✓Request copies of the board resolution, engineering report, and contractor bids that justify the assessment.
- ✓Never wire money based solely on a mailed notice — legitimate HOAs provide multiple payment options.
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 reported that real estate and rental fraud resulted in over 145 million USD in losses reported to IC3 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
Condo owners, HOA members
Geographic concentration
United States, Canada
Primary channel
Mail — HOA and condo scams
Why this group is vulnerable
Condo owners 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 reported that real estate and rental fraud resulted in over 145 million USD in losses reported to IC3 in 2023.
Source notes
- FBI IC3 2024
Frequently asked questions
Common questions about special assessment fraud scam
How does the special assessment fraud scam work?+
Scammers obtain condo association details from public filings and send convincing special assessment notices to unit owners. The notices cite urgent structural repairs or code violations requiring immediate payment. Payments are directed to accounts controlled by the scammers, often via wire transfer.
What are the warning signs of special assessment fraud scam?+
A large unexpected assessment arrives without any prior board meeting discussion The notice demands payment within days rather than the typical 30-90 day period No supporting documentation such as engineering reports or contractor bids is provided
What should I do if I encounter special assessment fraud scam?+
Verify any special assessment by contacting your HOA board or attending the next board meeting. Request copies of the board resolution, engineering report, and contractor bids that justify the assessment. Never wire money based solely on a mailed notice — legitimate HOAs provide multiple payment options.
Who is most at risk for special assessment fraud scam?+
This scam primarily targets Condo owners, HOA members. It is most commonly reported in United States, Canada and typically appears on Mail.
Is special assessment fraud scam on the rise?+
special assessment fraud scam is currently on the rise with growing reports. It has been reported across US, CA. 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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