Real-estate fraud experts warn that AI advancements and the abundance of publicly available information has made scammers more daring in their attempts at deed or title theft. These fraudsters are targeting a wide range of property owners from residents of big mansions to individuals with simpler homes or smaller vacant land parcels.

AI systems can swiftly scan databases to identify unoccupied properties or homes without existing mortgages, potentially flagging them as prime targets for fraudulent refinancing schemes. This process is often much faster than manual human searches.

Moreover, the vast amount of personal data accessible to scammers significantly simplifies the task of impersonating property owners. With detailed information at their fingertips, fraudsters can more convincingly assume the identities of legitimate homeowners, making their schemes increasingly difficult to detect and prevent.

Vacant Land Scams

In 2022, a parcel of land in Fairfield, Connecticut, changed hands after a scammer posed as the rightful owner. This type of deed fraud has become a growing concern for ordinary property owners. The recorder’s office functions similarly to a repository for real estate documents, but the responsibility for verifying the legitimacy of transactions often falls on title companies and notaries.

Title professionals are required to carry insurance precisely because they play a crucial role in ensuring the authenticity of property dealings. However, the system faces challenges, particularly with smaller transactions. Many closing agents, focused on processing a high volume of deals, may not always apply the same level of scrutiny to each case.

This situation highlights the vulnerabilities in the current property transaction system and underscores the need for enhanced safeguards to protect property owners from fraudulent activities. The incident in Fairfield serves as a reminder of how easily scammers can exploit weaknesses in the process, potentially causing significant distress and financial loss to legitimate property owners.

Deepfakes Fool Everyone

AI technology is making it increasingly simple for fraudsters to target anyone with their scams. These criminals are now leveraging artificial intelligence across various platforms, including phone calls, email phishing, and even property title transfers with local record keepers.

When title companies insist on verifying identities, some scammers are now offering video calls that turn out to be deepfakes or AI-generated videos, further complicating the verification process.

One of the key strengths of AI is its capacity to process and learn from vast amounts of data. In the context of property fraud, this becomes particularly concerning as property information is often publicly accessible. In certain states, a basic search can reveal a wealth of information including appraisal data, blueprints, transaction history, and even images of signed deeds.

With the aid of AI, fraudsters can now produce counterfeit documents more rapidly and with a higher degree of realism. This technological advancement significantly enhances their ability to create convincing forgeries, making it more challenging for authorities and property owners to detect and prevent such scams.

It’s Getting Worse

A recent study conducted in May 2024 by the American Land Title Association and NDP Analytics revealed that seller impersonation fraud is becoming increasingly prevalent in the real estate industry. This type of fraud, where individuals falsely assume the identities of property owners to sell their properties, affected a significant portion of title insurance companies.

The survey, which found that 28% of title insurance companies encountered at least one instance of seller impersonation fraud in 2023. A full 19% of these companies reported fraud attempts in April 2024 alone.

These findings underscore the growing challenge that seller impersonation fraud poses to the real estate industry and highlight the need for increased vigilance and protective measures.

If scammers are able to forge a deed, they could end up with a house—or even a mansion.

Graceland: The King of Rock and Roll is Scammed

In the early months of 2024 a firm calling itself Naussany Investments and Private Lending declared ownership of Graceland and revealed intentions to sell the property at auction. Elvis Presley’s granddaughter, Riley Keough, took legal action against the company, alleging the use of falsified documents to claim ownership, and emerged victorious in the lawsuit.

Subsequently, in August, federal authorities charged a Lisa Jeanine Findley, a Missouri resident, with fraud and identity theft for her alleged involvement in a scheme to unlawfully acquire the iconic estate.. Findley, is accused of orchestrating an elaborate plan to defraud the Presley family and gain control of Graceland through various fraudulent means. How in the heck she thought she could get away with that is further evidence that sociopaths think they are above the law.

Protect Yourself

Consumers, Real estate brokers and title companies can take several steps to protect themselves and their clients from property deed theft:

1. Monitor property records regularly:

Check your county recorder’s office or online property database periodically to ensure no unauthorized changes have been made to yours of your clients deed.

2. Sign up for alerts:

Many counties now offer free notification services that alert property owners of any changes or filings related to their property.

3. Be cautious with personal information:

Avoid sharing sensitive personal or property details with unknown individuals or through unsolicited communications.

4. Secure important documents:

Keep your property documents, including the deed, in a safe place such as a bank safety deposit box, fire retardant safe and a copy encrypted via online storage.

5. Be wary of unsolicited offers:

Be cautious of unexpected offers to buy your property or requests to sign documents related to your property.

6. Use title insurance:

Consider purchasing an owner’s title insurance policy, which can provide protection against fraudulent claims on your property.

7. Verify identities:

When engaging in any property transactions, always verify the identities of parties involved and the legitimacy of documents. Don’t just automatically trust either party is who they say they are.

8. Stay informed about local laws:

Familiarize yourself with your state’s property laws and any recent legislation aimed at combating deed theft, such as, for example, New York’s recent anti-deed theft bill.

9. Act quickly if you suspect fraud:

If you suspect your property deed has been stolen or tampered with, contact law enforcement, your title insurance and a real estate attorney immediately.

10. Consider professional assistance:

For complex property matters, consult with a reputable real estate attorney or title professional to ensure your property rights are protected.

By implementing these protective measures, property owners can significantly reduce their risk of falling victim to deed theft and safeguard their valuable assets.

Robert Siciliano CSP, CSI, CITRMS is a security expert and private investigator with 30+ years experience, #1 Best Selling Amazon author of 5 books, and the architect of the CSI Protection certification; a Cyber Social Identity and Personal Protection security awareness training program. He is a frequent speaker and media commentator, and CEO of Safr.Me and Head Trainer at ProtectNowLLC.com.