How AAA Can Help Protect Your Identity When Buying a Home

Article overview

In this article, you'll learn:

• Why the home buying process puts your personal information at serious risk.

• How to spot the most common home buying scams, including wire fraud and phishing.

• Practical steps you can take to protect yourself throughout the process.

• How to activate your free AAA ProtectMyID benefit before you start house hunting. 

Buying a home is one of the biggest financial decisions you'll ever make. But unfortunately, it's also one of the most attractive targets for identity theft and fraudsters. Between mortgage applications, title transfers and digital document exchanges, your personal information passes through a lot of hands.

Learn some of the biggest risks homebuyers face, how to spot common scams and what you can do to protect yourself throughout the process.

Why is identity theft such a big risk during home buying?

The home buying process requires you to share an unusual amount of sensitive data in a short period of time. Think about everything a lender, real estate agent, title company or escrow officer might ask for:

• Social Security numbers

• Bank account and routing numbers

• Tax returns and pay stubs 

• Employment and credit history

• Government-issued ID

• Wire transfers

That's nearly everything an identity thief would need. And because transactions often happen quickly, it's easy for scammers to slip through the cracks. 

Make the most of your AAA Membership

If you are a AAA Member, your membership already includes free identity protection through ProtectMyID. This built-in benefit provides an essential layer of security for your personal data, which is especially important during the home-buying process.

What is ProtectMyID and how do AAA Members benefit?

ProtectMyID is an identity monitoring service that watches for suspicious activity linked to your personal information like unauthorized use of your Social Security number, new accounts opened in your name or changes to your credit profile.

AAA Members get free access to ProtectMyID's basic monitoring tier as part of their membership. For homebuyers, this acts as an early warning system — alerting you to potential fraud before it impacts your mortgage approval or closing timeline.

When you enroll using the promotional code, you'll receive a complimentary one-month trial at either the Deluxe or Complete level which gives you access to enhanced features like three-bureau credit monitoring, dark web surveillance and more, right from the start.

Common home buying scams to watch out for

Knowing how to spot a home buying scam can save you lots of heartache and stress. Here are the most common threats:

Wire fraud

This is one of the most financially devastating scams targeting homebuyers. A fraudster poses as your title company or lender and sends you fake wiring instructions via email. According to the National Association of Realtors (NAR), nearly $446 million was lost to real estate wire fraud in 2023, with the average victim losing around $50,000 per incident. Always verify wiring instructions by calling your title company directly using a number you looked up yourself, not the one included in the email.

Phishing emails

This common real estate scam involves fraudsters monitoring public records to target buyers with emails that look like they're from your agent, lender or attorney. These messages often contain links designed to steal your login credentials or personal data.

Mortgage closing scams

Fraudsters may pose as closing agents and pressure you to transfer funds urgently. Legitimate closing professionals will never pressure you to wire money at the last minute without multiple verification steps.

Title fraud

Title fraud occurs when criminals use stolen personal info to forge deeds or take out loans against your property. This is a growing threat, with the National Association of Realtors (NAR) reporting that 63% of real estate professionals encountered title fraud or deed theft last year. Active identity monitoring can quickly flag the unusual credit activity that signals this fraud is underway.

Practical tips to protect yourself during the home buying process

Identity monitoring is a powerful tool, but it works best alongside good habits. A few things worth doing:

Use secure file-sharing tools

Ask your lender or agent if they have a secure portal for document exchange rather than sending sensitive files via standard email.

Verify before you wire

Call and confirm all wire transfer instructions by phone before sending any money. Every single time.

Watch your email closely

Be skeptical of any message that creates urgency around payments or login credentials.

Review your credit reports

Regularly check your credit reports to spot anything unfamiliar. Look for accounts you don't recognize or hard inquiries you didn't authorize.

Check public records after closing

Once you own your home, periodically verify that your name appears correctly on the deed and that no unauthorized liens have been filed.

Pay extra attention during these key windows:

• After submitting a mortgage application (when your lender performs a credit check home buying inquiry)

• During the escrow and title process

• In the weeks following closing (when your information may still be in circulation) 

If you spot anything suspicious, don't wait. Freeze your credit with the three major bureaus (Equifax, Experian and TransUnion) and file a report with the Federal Trade Commission at IdentityTheft.gov.

How to use your ProtectMyID Benefit

Activating your ProtectMyID benefit before you begin house hunting is the smartest move. Here's how to get started:

Step 1: Enroll online

Visit online at AAA.com/ExperianIDTheft to enroll is this free benefit. 

Step 2: Set up monitoring and alerts

Once enrolled, configure your alert preferences so you're notified quickly if anything unusual appears. The sooner you know, the sooner you can act.

Step 3: Monitor closely during active home buying phases

Pay extra attention to your alerts after submitting a mortgage application, during the escrow and title process and in the weeks following closing.

Step 4: Report anything suspicious immediately

If ProtectMyID flags an issue, don't wait. Contact your lender, freeze your credit with the three major bureaus and file a report with the Federal Trade Commission at IdentityTheft.gov.

Buying a home is stressful enough without worrying about fraud. Activating your free identity protection monitoring before you start the process takes less than 10 minutes and gives you a meaningful safety net during one of the most financially exposed periods of your life.