Keep every file and every party safe by using these best practices every day
By Mauri Hawkins, Chief Claims Counsel, Alliant National Title Insurance Company
Title pros know that fraud is a big problem in our industry, but the available data is still eye-popping. In 2024, the American Land Title Association (ALTA) reported that fraud and forgery claim costs averaged over $143,000 per incident.[i] Such losses can significantly impact a typical agency’s business, which makes prevention your best defense. To help, we’ve outlined 2026’s top fraud threats as well as strategies for spotting them early and protecting every file, every party, every day.
Why redouble our focus on fraud in 2026?
Fraud in 2026 harms businesses in a way that goes beyond dollars and cents. Fraud can also inflict major reputational damage, leading to lost referrals and, quite possibly, the closure of your business itself. In short, fraud and forgery can derail your company’s goals and prospects in both the short and long term. These serious consequences highlight why we must scrutinize the details of every file that comes across our desks—particularly from the insidious schemes we will explore below.
Seller impersonation is a danger
First up is seller impersonation. Increasingly common, seller impersonators pose as property owners and sell properties out from under the real owners without their even knowing. Given how widespread it has become, agents must never eyeball ID documents. ID-verification tools must be used on every file, every party, every day instead. Agents must also take time to scrutinize notary seals and the notaries themselves. When possible, avoid mail-away closings and use a reputable remote online notarization (RON) provider. Also, validate IDs at the time you receive an order, as this helps stop fraud in its tracks! And finally, educate your real estate agents, lenders and consumers on the very real risk of losing their money.
Vacant land sales pose a real threat
Vacant land remains another top fraud target in 2026. It is driving a huge share of claims nationwide and can get wildly expensive.
To cut down on these claims, ID-verification tools are again your best friend. Apply them to every file at the beginning of each order. That way, you can properly verify the parties involved and not waste time on bogus deals.
You should also always contact vested owners at a trusted address, whether by email or by mail, to confirm the sale. Finally, stay on guard for red flags like recent address changes or sudden changes to entity information located in the Secretary of State records. Those are go-to moves that sophisticated fraudsters love to deploy.
Fight back against payoff fraud
At Alliant National, we are also seeing a sharp rise in payoff fraud. These involve bad actors injecting themselves into the payoff process and rerouting funds away from the real lender or servicer and into their own bank accounts. Fraudsters have gotten good at compromising payoff mechanisms—from email to fax. Given that, the principle of Verify, Then Trust matters more than ever before.
Some best practices to remember include:
- Never accept payoff info from a party to the transaction.
- Prior to sending funds, confirm with the lender, using independently verified contact information, the wire information or payment address.
- Follow the verified lender instructions exactly and double-check payment details before disbursing.
- Treat any last-minute changes or “new” payoff directions as a major red flag, and contact the lender directly at the independently verified contact information before taking any further action.
For more best practices, managers should review our recent bulletin on handling payoffs securely and share it with their agents.
Staying cyber smart
No conversation about fraud in 2026 would be complete without touching upon cybersecurity concerns, particularly from phishing emails. Cyberattacks are one of the most common ways fraudsters can attack our industry. In fact, data reveals that over $16 billion in losses resulted from cybersecurity issues alone.[ii]
The silver lining is that we have a powerful way to prevent cybercrime and stem these losses. The numbers show that one of the most consistent reasons why a cyberattack is successful has to do with human error. Implementing security awareness training for your agency can reduce the likelihood of a fraudster pulling a fast one by 70-90%.[iii]
Strong cyber insurance is also essential for agencies to protect themselves from fraudsters. Review your policy’s terms and conditions thoroughly, institute processes and procedures for the team to follow in each transaction, and document each file with the actions taken to show that the processes and procedures were followed. This is highly important for when a claim is made under the cyber insurance policy.
You have a partner in the fight against fraud
At Alliant National, we’re here to support you in the fight against fraudsters. We have resources that can help:
- Alliant National Crime Watch Program: If an Alliant National agent’s employee spots and prevents possible fraud, agency management can nominate that employee to receive an award. Find more information here about the program.
- The Alliant National Fraud Prevention Tips: Find handy best practices for spotting and stopping fraud with this tip sheet.
- ID Verification Tools: Explore today’s top platforms and make sure your team is trained on the right policies and best practices. Alliant National agents, for example, can receive a special rate via CertifID—a leading identity verification provider.
You’re ready to face fraudsters
Armed with these tools and knowledge of 2026’s top fraud threats, you’re ready to spot bad actors and act before a scheme escalates into a loss. Just remember to never take anything at face value and to verify before you ever extend your trust. By approaching your files with the mantra of “Verify, Then Trust” in mind, you can rest easy knowing you’ve protected every file, every party, every day.
[i] ALTA – Average Title Insurance Claim Cost for Fraud and Forgery is $143,000
[ii] https://www.fbi.gov/news/press-releases/fbi-releases-annual-internet-crime-report
[iii] KnowBe4 Research Confirms Effective Security Awareness Training Significantly Reduces Data Breaches
