09/22

Seller impersonation fraud is no longer a rare headline or far-off warning. This scam has plagued real estate since 2023, and it’s only getting worse.

According to the American Land Title Association, the share of title companies encountering at least one fraud attempt in the last year has more than doubled since the last survey. We weren’t planning to write about fraud this week, but that finding demands everyone’s attention.

You can no longer assume a “seller,” or anyone else involved in a real estate deal, is who they say they are.  The criminals behind these scams often rely on public records, remote communication, forged or misused credentials and a sense of urgency to move a deal forward before anyone spots the warning signs.  The good news? Title professionals, real estate agents, lenders and consumers can all play a role in stopping seller impersonation fraud before it reaches the closing table.

Three numbers tell the story:

• More than half (59%) of title companies reported at least one seller impersonation fraud attempt in the prior calendar year, about double the last survey.
• 45% of title companies said they dealt with at least one fake seller attempt in the last month, and almost a quarter (23%) said they encountered at least three attempts in the last month.
• One in four firms that reported an attempt also reported a paid claim related to seller impersonation fraud. Among those disclosing average costs, half reported costs above $100,000.

What is seller impersonation fraud?

At a high level, seller impersonation fraud is exactly what it sounds like: a scammer pretends to own a home and tries to sell it before anyone notices. Because we’ve covered the basics before, the real takeaway from ALTA’s newest survey isn’t what the scam is. It’s how often cybercriminals are trying it, and succeeding.

How you can help us defend against fake sellers

• Create a clear escalation path before a concern appears. Teams should know who to contact, what information to preserve and when to pause a file for additional review.
• Compare the seller’s story against the full transaction record. Small inconsistencies in timing, preferred communication methods, payoff details, tax records or closing logistics can become meaningful when viewed together. Pro Tip: If something feels off, ask a highly specific question about the property that can’t be answered on Google Maps, Zillow or anywhere else online.
• Use secure, documented communication channels. Keeping key instructions and approvals in known channels reduces confusion and gives the transaction team a clearer record if questions arise.
• Watch for changes late in the process. Last-minute updates to payout instructions, notary arrangements, mailing addresses or signing logistics should trigger extra review before the transaction moves forward. (This is true for traditional wire fraud, too.)

Seller impersonation fraud is persistent, evolving and too costly to ignore. To our REALTOR® friends: do everything you can to positively ID everyone involved in a transaction; if you can’t, give us a heads-up. We’ll verify what’s needed before it’s too late.

If you have questions about how we keep closings more secure, contact your local branch. Our teams are here to help every transaction move forward securely and confidently.