Lew Sichelman
For the second consecutive year, the FBI has warned both consumers and real estate professionals about the rising tide of title thefts.
The agency’s Internet Crime Complaint Center, known as IC3, does not have specific statistics solely for deed fraud, which falls into its “real estate crime” category.
“Nationwide, from 2019 through 2023, 58,141 victims reported $1.3 billion in losses relating to real estate fraud,” reads a 2025 report from the agency.
Typically, the scam works like this: Using fake IDs, criminals impersonate property owners – often the owners of vacant land, empty houses or unused vacation homes – and obtain their personal information through county or state public websites, data brokers, hackers, stolen accounts or phishing schemes.
Once they find a mark, they contact a local realty agent, title company or deed office, posing as the true owner. They ask to draft contracts to market and sell the property or have the deed transferred to themselves or another party. Then, they take the money from the illegal sale and skedaddle.
Victims often spend $50,000 to $150,000 in legal fees attempting to restore ownership after a fraudulent deed is recorded, according to fraud prevention company Equity Protect, which reports that 1 in 3 title companies experienced at least one seller impersonation fraud attempt in 2024.
Few Legal Protections
There are no federal protections against this skullduggery, and only 10 states have enacted dedicated statutes to combat the problem, according to Equity Protect. That means that most states “still lack a deed-theft-specific law, leaving millions of property owners dependent on traditional fraud and forgery statutes after a fraudulent deed has already been recorded,” says the company.
Fortunately, homeowners can take steps to protect themselves. If you are buying a property, send a certified letter to the address on the tax rolls of the owner on record. If the seller can produce the letter, they’re likely the legit owner.
Another method of protection is to check regularly with the county recorder’s office, register of deeds or the county clerk’s office to make sure someone else’s name has not been substituted on the recorded title for yours.
For the most part, these offices are required to accept and record documents that, on their face, appear legal. They usually verify documents, but do not verify that the person signing them is the rightful property owner. So you can’t rely on clerks to spot a fraud, but some offices offer free notification services and will send automated emails or texts when a legal document is recorded using your name.
Two New Title Protections
Several companies offer to monitor titles – for a price – but you can do this yourself. Also, review the owner’s title insurance policy for post-policy coverage. You were required to buy title insurance at closing that protects the lender for undisclosed title defects. For a separate charge, you also were offered a policy that protects you. That’s the one you want to check for protection against forgery and coverage of the cost to clear your title and restore your rightful ownership.
For its part, the American Land Title Association has published two new standardized endorsements that expand access to forgery protection for owners who do not have an ALTA homeowners policy.
Title insurance usually protects against title defects, including forgery, that occurred prior to acquiring a property. But the new endorsements are prospective, meaning they apply to forgery events that occur after the title policy is issued.
AI Deepfake Frauds a Worry
Meanwhile, deepfake frauds are becoming a growing concern. Security firm Entrust describes deepfakes as “realistic, AI-generated fake videos, images or audio recordings that mimic a real person’s likeness.”
“Scammers might use deepfake-generated audio or video to impersonate buyers, sellers, real estate agents, real estate lawyers, title agents or other professionals,” reads a report from the National Association of Realtors. “By pretending to be real people involved in a real estate transaction, criminals can change the wiring or money transfer instructions to divert down payments or closing funds to their own bank accounts.
“They can also manipulate property photos or virtual tours to hide defects, exaggerate home features or even fabricate nonexistent properties to sell to unsuspecting buyers,” says NAR.
To protect yourself and your money, the association suggests verifying instructions for wiring funds.
“Any urgent change in instructions – whether delivered through an email, audio message or a video call – is a red flag,” NAR warns.
Another step: Use secure messaging systems or encrypted emails – not a free email account – when you communicate with any professional involved in the transaction. And ask for multifactor authentication before transferring any money or signing important documents. Also, avoid any transaction on a property you haven’t visited in person.
Also, “independently verify property documents and ownership through title companies and trusted parties. Never rely solely on digital copies that could have been altered,” NAR advises.
Finally, consider investing in an owner’s title policy as mentioned above. The policy will protect you against forged deeds, fraudulent liens and fake owners.
Lew Sichelman has been covering real estate for more than 50 years. He is a regular contributor to numerous shelter magazines and housing and housing-finance industry publications. Readers can contact him at lsichelman@aol.com.
