FBI Warns Homeowners of Title Theft
By Greg Collier
The FBI is alerting homeowners to a growing threat known as “title theft,” where fraudsters steal property owners’ identities and attempt to sell their land without their knowledge. Officials report that these scams are on the rise, particularly targeting elderly individuals who are more likely to own vacant land or homes that are fully paid off.
According to the FBI’s Internet Crime Complaint Center, from 2019 through 2023, real estate fraud cost victims across the United States approximately $1.3 billion.
Authorities emphasize that timing is critical when addressing title theft. Reporting suspected fraud within 24 hours can significantly increase the chances of recovering stolen funds. Title pirates often operate quickly, attempting to finalize fraudulent sales before property owners even realize their homes or land have been targeted.
Recent cases have illustrated how these scams unfold. Criminals often create forged deeds using publicly available information and submit them electronically to legitimate attorneys to initiate property sales. Many contracts today are completed online, making it easier for scammers to slip fraudulent documents past busy professionals. Once the forged documents are accepted, scammers often secure loans against the stolen property, taking the money and disappearing before the fraud is discovered.
In one case, a homeowner was alerted to the fraud only because an attorney verified a suspicious sale. Without that early warning, the homeowner might have faced months of legal battles and tens of thousands of dollars in fees to reclaim their property.
The FBI warns that scammers tend to focus on properties that are vacant, mortgage-free, or second homes. They use fake identification that often closely mimics genuine government documents, making detection difficult. Criminals usually insist on handling transactions remotely, refusing video calls and in-person meetings, and push for quick sales at below-market prices to expedite the fraud.
Real estate professionals are encouraged to be especially vigilant. The National Association of Realtors advises taking additional precautions, such as verifying seller identities through multiple methods. Homeowners are also urged to register for notification alerts with their local registry of deeds. These alerts notify owners whenever a document is recorded against their property, helping to catch fraudulent activity early.
Title theft is a serious and evolving threat, and both homeowners and real estate professionals must remain proactive to guard against it. The FBI continues to investigate these crimes and work to prevent future victims from losing their homes and life savings.
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