Fraudsters are increasingly coordinated and cutting edge
By Tom Weyant, VP, Risk Management and Data Privacy Officer, Alliant National Title Insurance Company
The days of fraudsters being content with sending random phishing emails are long gone. Advanced automation tools are increasingly being leveraged to research transaction timelines and exploit openings to steal funds. Protecting clients and exercising due diligence now requires title agents to similarly up their game. In practical terms, this means agents must stay aware of emerging criminal schemes and deploy the latest measures to counteract them.
A quick look at the data confirms the scale of the threat facing the real estate and title industries. According to the FBI Internet Crime Complaint Center (IC3), real estate-related cyber fraud losses escalated to over $275 million in 2025.[i] The same report details that this figure comes from over 12,368 victims whose lives were disrupted due to cyber criminals.[ii] One other important point is that these figures, both the total financial losses and the number of victims affected, have both grown since 2024 and 2023. It is a trend which suggests fraudsters are not just applying the same old tricks but are successfully improving their methods of deception and attack.
Two of the new strategies these criminals are deploying are synthetic identity fraud and account takeover. Criminals leverage vast caches of leaked data in these schemes to create synthetic identities and compromise communication channels. This renders older verification protocols like knowledge-based authentication (KBA) obsolete.
The next technique involves fake payoff statements. Fraudsters routinely inject manipulated or fraudulent lender payoff statements into the transaction chain, the goal ultimately being to divert mortgage payoff funds. When successful, this fraudulent activity not only causes immediate financial loss but can also leave existing liens unsatisfied, delay transactions and even create costly title defects.
Furthermore, standard phishing emails have now evolved to become far more clandestine, convincing and dangerous. While grammatically flawed emails were once the standard for bad actors, today is a whole new ball game. Criminals have grown increasingly sophisticated and now routinely generate perfectly forged documents that even include notary seals. Digital voice cloning is also becoming increasingly common.
As a result of these new attacks, title professionals must now place greater emphasis on stringent, comprehensive payoff verification and secure communication practices. In addition, title professionals must prioritize ongoing employee training, as well as advanced fraud detection technologies. Collectively, these measures help protect buyers, sellers, lenders and provide security in the closing process.
The title industry was once far more localized and document heavy, and unsurprisingly, so too was real estate fraud. Criminals deployed a variety of schemes like mail interception, check fraud and forged deeds and documents. While no one should exactly be nostalgic for those days, these scams can feel almost quaint in comparison with the bad actors of today. Modern criminals have successfully turned the most cutting-edge digital advances to their advantage to victimize others. By taking advantage of the same tools, agents can level the playing field — ensuring the safety of their transactions and the longevity of our industry.
[i] Online Real Estate Fraud Climbed to $275M in 2025, FBI Says
[ii] Ibid
