Wire Fraud

First American Title Insurance Co. announced that its policy-issuing title agents can now offer their eligible clients a property title monitoring and fraud alert service at no additional cost when their residential owner’s title insurance policy is underwritten by First American Title. 

A state watchdog is urging New Jersey legislators to strengthen protections against deed fraud, warning that real estate scams have risen since the pandemic without sufficient regulations in place to stop swindlers. The State Commission of Investigation began looking at deed fraud in 2024, after the FBI’s Newark field office warned of an uptick. The report mentions that ALTA also warned about the growing threat seller impersonation two years ago, as well as the 49 endorsements that protect provide post-policy protection against forged deeds.

According to the Harris County Clerk's site, the new "Property Alert System" will be a free service. A launch date has not been listed yet. When activated, property owners can enroll to receive an alert whenever a document is recorded under their registered name. This will allow them to review the filing and identify any unauthorized activity.

The new ionFraud Account Verification module draws on FNF's internal wire history along with a national bank account and known-mule-account database. Agents can run a check at either point where fraud typically slips through: at the start of a transaction, to screen for seller or borrower impersonation, or immediately before a wire is sent.

ALTA CEO Chris Morton appeared on HousingWire’s Power House podcast to discuss the growing threat of wire fraud, deed fraud, seller impersonation and AI-powered scams, and how those risks ultimately affect homeowners and housing affordability. Morton also discussed Fannie Mae’s title insurance waiver efforts, the significant risks that remain in refinance transactions and the critical work title professionals do behind the scenes to prevent fraud and protect property rights.

Wire fraud in real estate is no longer the work of opportunistic scammers. It has evolved into a sophisticated, global enterprise. One that is faster, smarter and often better organized than many in the industry understand. That was the stark message delivered to more than 400 attendees during the ALTA EDge session, “The Great Transaction Heist: Inside Modern Wire Fraud,” experts pulled back the curtain on how modern fraud operations really work.

Reported losses in the U.S. from real-estate and wire-transfer fraud soared to $12.5 billion in 2023, according to the Internet Crime Complaint Center (IC3) of the Federal Bureau of Investigation (FBI). Navigating the real estate world can feel like trying to identify weeds in a new garden patch; some are obvious, while others look deceptively like the real deal. We are here to help you spot the poison ivy before you get a rash.

In 2012, former FBI Director Robert Mueller opined, “There are only two types of companies: those that have been hacked and those that will be.” That statement rings true 13 years later. Today, wire fraud remains one of the most pressing threats facing title and escrow companies. Fraudsters are becoming increasingly sophisticated, leveraging business email compromise, seller impersonation and even deepfake technology to infiltrate transactions. As the threats have escalated, the types of strategies criminals use to steal funds continue to evolve. This highlights the importance of continuous training, robust verification processes and industry collaboration to protect businesses and consumers from financial loss.