By Jonathan Eberle |
A new analysis shows Arizona is among the states most vulnerable to real estate scams during the holiday season, as buyers and sellers rush to close deals before the end of the year. A study released by PPS House Buyers reviewed Federal Trade Commission data from 2022 to 2024 and found that Arizona records an average of 2.04 real estate scam reports per 100,000 residents between October and December—placing it fifth in the nation. Victims in the state lose an average of $18,025 per incident, a figure notably higher than the national average loss of $16,369.
Nevada tops the list for winter scam exposure, averaging 2.64 reports per 100,000 people during the final quarter of the year. The state also saw $1.39 million in total losses across 86 reports, with each victim losing more than $16,000 on average. Georgia and Florida follow closely behind, with 2.29 and 2.23 reports per 100,000 residents, respectively. Florida also experiences the steepest total financial toll, with annual Q4 losses topping $7.2 million.
Although Alaska ranks fourth overall, the state’s smaller population means only about 16 scams are reported each year. Still, losses total more than $170,000 annually. In Arizona, the combination of rapid population growth, high homebuyer demand, and holiday transaction pressure may be contributing to the state’s elevated risk level. The average loss per victim in Arizona—$18,025—is one of the highest among the top 10 most vulnerable states.
Colorado, South Carolina, Virginia, Missouri, and Hawaii round out the top ten, all posting scam report rates well above the national average of 1.14 reports per 100,000 residents. At the opposite end of the spectrum, North Dakota sees the fewest winter real estate scam reports—just 0.17 per100,000 residents. But despite its low report rate, the state ranks near the top in average financial damage, with victims losing an average of $76,142 per incident.
Wisconsin and Iowa follow as the second- and third-lowest states for scam frequency. Arkansas and Rhode Island complete the five states least affected by winter real estate scams, though Arkansas reports an unusually high per-victim loss of $17,828. While Nevada generates the most reports, Wyoming and North Dakota see the most severe individual financial harm. Wyoming victims lose an average of $80,694, nearly five times the national average. North Dakota follows closely at just over $76,000 per scam.
Joel Medrano, CEO of PPS House Buyers, said the combination of consumer urgency and reduced attention during year-end planning makes the holiday season particularly dangerous. “The holidays create the perfect storm for real estate scams, as buyers feel pressure to close before Christmas, and scammers exploit that urgency with deals that seem too good to miss,” Medrano said. “Anyone involved in real estate transactions should verify all parties through official channels, never wire money based on email instructions alone, and be especially cautious of deals that seem unusually urgent or pressure you to act quickly.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
