7 Ways Title Companies Can Combat Seller Impersonation Fraud

Let’s talk fraud by impersonation of seller. While this scam has been happening nationwide for a few years, it will likely become more common as we approach 2026. How does it work and what should everyone in the real estate sector know about it?

It starts with a phone call or an email. A ‘seller’ wants to unload a vacant lot quickly and the price seems like a bargain. But behind the scenes it’s a criminal pretending to be the owner of the property, and by the time anyone realizes it, the money is gone.

This scheme, also known as vacant lot fraud, has become one of the fastest growing threats in the real estate industry, and the scale of the problem is staggering. The average property insurance fraud or forgery claim is more than $143,000. Although merchant impersonation fraud is sophisticated, it is still preventable. With the right awareness and protocols, title professionals can recognize the warning signs and stop criminals before they sit at the closing table.

Here are seven strategies you can put into practice to protect yourself and your customers.

1. Know how fraudsters work

Understanding the playbook is the first step in stopping any form of fraud. When it comes to seller impersonation fraud, criminals use publicly available land and tax records to obtain the names, signatures and ownership information of owners. They then use forged IDs and forged notarial certificates to pass themselves off as the rightful owner of the property.

As you probably guessed from one of the names, the most common targets are:

• Vacant lots and rural properties
• Rental or investment properties
• Mortgage-free homes

These scammers often convince an agent to list properties well below market value to create the illusion of urgency, insist on a quick sale (sometimes within three weeks) and avoid personal interactions, preferring to communicate only by text or email.

2. Recognize the red flags

Fraudsters are getting smarter, but there are usually still some signs that you are not dealing with a legitimate seller. Be alert to these clues:

Real estate-based red flags

• The property is vacant land or property of the absentee (investment, holiday or rental).
• The desired listing price drops significantly below the market value.
• The property is free and clear of any mortgage or lien.
• The owner’s address does not match the tax postal address.

Seller-based red flags

• Forces a quick sale, often within three weeks.
• Refuses in-person meetings and communicates only by text or email.
• Claims he is out of state or abroad and does not want to participate in a video call.
• Requests a cash buyer or demands that the proceeds be transferred.
• Denies or fails multi-factor authentication or ID verification.
• Insists on using its own notary.
• Presents ID or signatures that do not match existing records.

Catching these indicators early can help your team interrupt, investigate, and potentially stop fraud before it reaches the closing table.

3. Verify sellers using independent sources

Always confirm the seller’s identity using independent, verifiable sources, such as tax preparer records, deed records, or official mailing addresses. Take the extra step and reach out through these verified channels. For example, send a confirmation letter to the tax postal address on file or call a number that you obtain from public registers. This simple cross-check can uncover an impersonator before a transaction goes too far.

4. Contact the broker

Since real estate agents are usually the ones who make the first contact with a potential seller, you can ask if they have actually met them or can vouch for their identity. If the answer is no, or if communication has been limited to text or email, it’s time to take your internal verification process to the next level. Working closely with trusted real estate partners is one of the most effective ways to stop fraud before it gains ground.

5. Do not let the seller employ his own notary

Fraudsters often try to use their own notaries for a transaction. Title companies should only use vetted, trusted notaries and, where possible, arrange signatures at secure office locations. If your state allows Remote Online Notarization (RON), consider including it in your toolkit as an extra layer of security.

6. Double-check identity using public records

Use layered verification to confirm a seller’s legitimacy. Run details through tools like reverse lookups, ID authentication platforms and, if possible, multifactorial checks. Ask real estate-specific questions that only the real owner will know. Then refer to public documents. Compare the seller’s signature to previously recorded documents and confirm that the sales price is consistent with recent appraisals or market trends.

7. Educate your local real estate community

Make sure everyone in your professional network – county recorders, real estate agents and lenders – understands the risk of fake sellers and these red flags in transactions. Consider organizing lunch-and-learns, posting reminders on social media, or even creating short, recorded videos to highlight the warning signs your colleagues should look out for.

You don’t have to build all the resources yourself. The American Land Title Association (ALTA) offers videos, infographics and handouts that you can use to train your staff, train partners and provide consumer-friendly materials. They also introduced it new title insurance endorsements providing post-policy protection against forged deeds and mortgages, and updated ALTA Best Practices Framework to emphasize stronger identity verification, staff training, and oversight of notaries and signers.

Including these measures not only reduces risk, but also shows your customers and partners that you are taking every step to protect them.

The bottom line

Salesperson impersonation fraud is not going away; it will continue to evolve as criminals find new ways to exploit real estate transactions. The best defense is vigilance: verifying details every step of the way and equipping your team with tools that help spot suspicious activity before it’s too late.

For more than 40 years, SoftPro has supported title professionals with software and services that make closings safer and more efficient. By means of SoftPro 360our free vendor portal, you can access integrations such as ionFraud into Fidelity National Financial’s (FNF) agentTRAX, which provides an early warning system to help identify potential merchant impersonation risks at the outset of a transaction. Other insurers may also offer similar resources, so ask your affiliates about the resources available to you.