When it comes to getting scammed, most of us like to think we’re “smarter than the average bear” — that there’s no chance of falling for that too-good-to-be-true investment offer or clicking on the suspicious link in that phishing email. But even during Cybersecurity Awareness Month, the truth is anyone can fall victim to fraud.
Cybercriminals are increasingly leveraging artificial intelligence (AI) to carry out sophisticated scams. Nearly three in four American adults have been targeted by online fraud with roughly 20 percent losing money, according to a Pew Research Center report. AI tools that mimic voices, forge identification documents and create realistic property listings have made these schemes easier to execute. Law enforcement agencies warn that AI-driven impersonation and document fraud are among the fastest-growing cybercrimes, challenging traditional verification systems.
These bad actors are now turning their attention to real estate. A growing number of scams involve seller impersonation fraud: a crime that occurs when thieves pose as property owners and attempt to sell real estate they don’t actually own. By exploiting stolen personal information, such as driver’s licenses or Social Security numbers, fraudsters can deceive legitimate homebuyers, real estate agents and title professionals into believing a sale is real.
This isn’t an abstract concern. Nearly one in four title companies reported encountering seller impersonation attempts last year. When these scams succeed, the financial and legal fallout can be devastating. Victims often don’t discover the fraud until long after the fake sale, and the cost of untangling ownership can exceed $140,000 per claim.
The economic ripple effects of real estate fraud extend beyond individual victims. Fraudulent transactions distort property data, complicate title searches and erode confidence in local real estate markets. When consumers or lenders lose trust that property ownership records are accurate, the entire ecosystem— from mortgage financing to municipal tax rolls—feels the impact. In extreme cases such scams can delay development or depress property values. Put simply, protecting transaction integrity is not just a matter of personal financial security: it’s a key factor in maintaining the efficiency and transparency of America’s $50 trillion real estate sector.
As the new CEO of the American Land Title Association I have made it a priority to confront this threat head-on. In August, ALTA introduced two new title insurance endorsements designed to help protect homeowners from the consequences of forged deeds or mortgages recorded in land records. These endorsements build on the industry’s ongoing work to educate consumers about warning signs—such as sellers who insist on communicating only by email or properties listed below market value—and provide a safety net that ensures confidence in property transactions. In addition, ALTA updated its Best Practices guidelines to include new guidance to help title professionals combat fraud through identity verification efforts.
As fraud trends threaten individual homeowners and the real estate market, title insurance and expert title professionals remain central to protecting what is often a family’s largest investment, ensuring confidence in real estate transactions and supporting housing market stability.
Safeguarding the American Dream is a shared responsibility, one that calls for vigilance from homebuyers, policymakers, and industry leaders alike. Homebuyers should verify ownership through trusted title professionals while policymakers and regulators can strengthen the legal frameworks that deter bad actors. ALTA and the title industry remain committed to advancing safeguards that protect consumers, uphold market integrity, and reinforce trust in the foundation of property ownership.
