7 ways title companies can combat seller impersonation fraud

"It starts with a phone call or an email. A seller wants to unload a vacant lot quickly, and the price looks like a bargain. But behind the scenes, it's a criminal posing as the property owner, and by the time anyone realizes, the money is gone. Also known as vacant lot fraud, this scheme has become one of the fastest-growing threats in real estate, and the scale of the problem is staggering."

"The average title insurance fraud or forgery claim exceeds $143,000. While seller impersonation fraud is sophisticated, it's still preventable. With the right awareness and protocols, title professionals can spot the warning signs and stop criminals before they reach the closing table. Here are seven strategies to put into practice to protect yourselves and your clients. Understanding the playbook is the first step in stopping any kind of fraud."

"When it comes to seller impersonation fraud, criminals exploit publicly available land and tax records to harvest owner names, signatures, and property details. Then, they use forged IDs and falsified notarizations to pass as the rightful property owner. As you probably guessed from one of its names, the most common targets are: Vacant lots and rural properties Rental or investment properties Mortgage-free homes"

Seller impersonation fraud targets vacant lots, rural, rental, investment, and mortgage-free properties by exploiting public land and tax records to harvest owner names, signatures, and property details. Criminals use forged IDs and falsified notarizations to pose as owners and pressure quick sales, often listing well below market value and communicating only by text or email. Average title insurance forgery claims exceed $143,000, and losses are growing nationwide. Fraud can be prevented with awareness and strict verification protocols at listing and closing, including identity verification, notarization checks, in-person meetings, and heightened scrutiny of absentee-owned or unusually priced properties.

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