Appraisal Fraud

Appraisal fraud occurs when property appraisals are intentionally manipulated to inflate or deflate the value of a property. This often happens in real estate transactions, where sellers or buyers may collude with appraisers to achieve a desired outcome, such as securing a higher loan amount or reducing taxes. Such actions mislead lenders and can lead to financial losses for banks and investors. Appraisal fraud is illegal and unethical, undermining the integrity of the real estate market and contributing to financial instability.