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Do You Own Property? Protect Yourself From Seller Impersonation Fraud
In this real estate scam, criminals use public information for identity theft and title fraud, then sell properties out from under the legitimate owners
Photo Collage: AARP (Source: Shutterstock; Getty Images)
About Seller Impersonation Scams
- Seller impersonation fraud is growing and can allow criminals to sell property they do not own using forged documents and stolen personal information.
- Vacant land, second homes, and properties with high equity are especially vulnerable because owners may not notice suspicious activity quickly.
- Owners and buyers can reduce risk by monitoring property records, verifying sellers, and carrying title insurance that covers fraud.
When you own a house, you think it’s yours. Full stop. That’s why it was so shocking when a couple in Tampa, Florida, Dreama and Larry Bilby, discovered that a pair of scammers had filed a deed that transferred ownership of their home. It was a quitclaim deed, which is typically used to transfer property without a sale, such as from a parent to a child. But in this case, criminals exploited it to steal from the unsuspecting couple. It was made easier because the Bilbys lived elsewhere while their house was being renovated.
The good news: the Bilbys had a camera on the property and captured the scammers, which helped lead to their eventual arrest and a 15-year prison sentence.
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(Listen to this episode of AARP’s The Perfect Scam℠ podcast to hear more on their story.)
Real estate fraud expert Tom Cronkright says scams like this one — which take the form of home title theft, title fraud and seller impersonation — are relatively rare but increasingly common and often successful. It’s not always through a quitclaim deed, however: Sometimes a scammer will impersonate the owner, hire a real estate agent to list and sell the property, and then walk away with the sale proceeds after closing.
“Title theft is … the perfect real estate crime,” says Cronkright, cofounder and executive chair of CertifID, a wire fraud prevention firm, and Sun Title, a residential and commercial title company in Grand Rapids, Michigan. Unlike other forms of identity theft that require access to victims’ online accounts, Cronkright notes, “everything that the [criminal] would need to [perpetrate title theft] is publicly available.”
The American Land Title Association (ALTA) released new research this month that shows an uptick in these schemes. Nearly 50 percent of the 245 title insurance professionals ALTA surveyed reported experiencing at least one such fraud attempt in 2025, up from 28 percent in 2024.
How seller impersonation fraud works
Criminals will impersonate the property owner, convince a real estate professional to list it, and, in some cases, successfully sell it to an unsuspecting buyer. Using AI, they can create convincing fake identification documents, with the help of public records and personal information obtained through data breaches or criminal marketplaces, says Conkright.
Some properties are more vulnerable than others. Vacant land and second homes are often targets, "because there is a lower likelihood that an owner will discover the fraudulent sale before it happens,” explains Sarah Frano, vice president and real estate fraud risk expert at First American Title Insurance Company.
Properties with no mortgages or high equity are also attractive targets, adds Frano, who says victims include real estate owners, buyers and lenders — particularly those without title insurance, which in many cases offers protection against home title fraud.
How owners discover the fraud
- ·A missed property tax bill
- A county filing alert
- A call from a real estate agent
- Unauthorized occupants, construction or for-sale signs
- Credit or title-related notifications
If you are a victim of seller impersonation fraud
The law is on your side. “Title theft is a bit of a misnomer,” Frano says. “Legally, a forged deed is invalid, and the true owner only superficially appears to have lost title.”
Still, the risks and headaches associated with home title fraud are real. Buyers are protected if they have title insurance — as most do — but if they’ve made a cash transaction with no mortgage and don’t have title insurance, that money may be irretrievable.
Victimized property owners will need to prove ownership and that the transaction was fraudulent. Unless your title insurance covers post-purchase fraud, you might need to hire a lawyer and potentially go to court.
How to protect yourself from title fraud
Title companies are waging their own battles against seller impersonation, using “multiple fraud-prevention tools and verification methods to identify suspicious transactions,” according to Elizabeth Blosser, ALTA chief strategy, communications and advocacy officer. She cites “multifactor authentication, independently verified contact information, approved notary networks and direct outreach to property owners.” But there are also steps you can take to protect yourself.
If you’re a property owner:
- Set up a Google Alert with your property address. “If the scammer lists the property for sale, an alert may help you stop a sale before it happens,” Frano says.
- Consult county records if you’ve missed an expected tax bill or assessment. “While silent, this is often the first alarm bell that [criminals] have transferred the title,” Frano notes.
- Check on vacant land and unoccupied properties. Mysterious construction, unauthorized occupants and unsanctioned “for sale” signs can be visual evidence of potential fraud. If you own vacant land, an unoccupied home or a rental property, you should therefore make regular visits to inspect it or ask the neighbors to keep an eye out for unusual activity.
- Check your title insurance policy for post-event coverage. Review your title insurance policy to determine whether it covers forgery and fraud that occur after purchase. Owners with older policies may want to ask their insurer whether enhanced fraud coverage is available, Frano says. ALTA has developed new endorsements (modifications to title insurance policies) that allow homeowners to obtain post-policy protection against forged deeds and mortgages.
- Sign up for alerts from your state or county. Many states have free services to alert owners when their property is the subject of a filing or their name appears in a filing (this map highlights the states that do so). You can also ask the county recorder’s office or the office that records the deed in your area if they have a system to notify you of any new recordings related to your property.
- Ask a real estate attorney about preventive measures. Discuss whether your state offers legal tools that may help deter fraud or trigger additional review before a property transfer.
Home title lock insurance
Don’t buy it. The FTC has warned about “title lock insurance.” The agency notes that this is different than title insurance, which protects you against challenges to the title. But title lock insurance does not do so, according to the FTC: “You’d only find out after your title got transferred to someone else without your authorization. So much for the lock.”
If you’re purchasing property:
- Buy title insurance. If you have a mortgage, most lenders will require you to have title insurance. If you’re a cash buyer, however, you might need to go out of your way to get it. “Select a title insurance policy with fraud coverage,” for incidents before and after closing, advises Frano. (But, as noted in the sidebar, don’t buy “title lock insurance.”)
- Be skeptical of bargains and rushed closings. One of the hallmarks of fraudulent sales is a price well below the market price. A desire for a quick closing is another potential red flag.
- Be cautious if a property is listed as for sale by owner. Criminals are likely to avoid “the additional scrutiny” that a real estate agent would bring, points out Frano. She adds that you therefore should “be suspicious of a seller who pressures you to avoid involving an attorney or title company in the transaction.”
- Beware custom closing. Consider heightened scrutiny or halt a transaction when a seller insists on using their own unknown notary or signing remotely outside their claimed location. Remote closings should not be confused with remote online notarizations, which are performed on platforms designed to require third-party, multifactor authentication of the signer. (Blosser says title professionals are also paying closer attention to the above warning signs, including “sellers who refuse video calls, insist on using their own notary, communicate exclusively through email, and push for unusually fast closings.”)
- Verify the seller. Verify the seller’s identity through your real estate agent, attorney or title company, especially if the seller avoids phone calls, in-person meetings or standard closing procedures.
Report home title theft
If you think you’ve been a victim of home title theft or another type of real estate fraud, contact your local law enforcement agency and your county recorder’s office, consult a real estate attorney and report it to the FBI’s Internet Crime Complaint Center at www.ic3.gov.
Call the AARP Fraud Watch Network’s toll-free Helpline (877-908-3360), where trained volunteers provide victims and family members with support and guidance on next steps.
The key takeaways were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.
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