Let’s talk seller impersonation fraud. While this scam has been nationwide for a few years now, it is likely to become more prevalent as we head into 2026. So, how does it work, and what should everyone in real estate know about it?
It starts with a phone call or an email. A “seller” wants to unload a vacant lot quickly, and the price looks like a bargain. But behind the scenes, it’s a criminal posing as the property owner, and by the time anyone realizes, the money is gone.
Also known as vacant lot fraud, this scheme has become one of the fastest-growing threats in real estate, and the scale of the problem is staggering. The average title insurance fraud or forgery claim exceeds $143,000. While seller impersonation fraud is sophisticated, it’s still preventable. With the right awareness and protocols, title professionals can spot the warning signs and stop criminals before they reach the closing table.
Here are seven strategies to put into practice to protect yourselves and your clients.
1. Know how fraudsters operate
Understanding the playbook is the first step in stopping any kind of fraud. When it comes to seller impersonation fraud, criminals exploit publicly available land and tax records to harvest owner names, signatures, and property details. Then, they use forged IDs and falsified notarizations to pass as the rightful property owner.
As you probably guessed from one of its names, the most common targets are:
- Vacant lots and rural properties
- Rental or investment properties
- Mortgage-free homes
These scammers often convince a real estate agent to list properties well below market value to create an illusion of urgency, push for a quick sale (sometimes in as little as three weeks), and avoid in-person interactions, preferring to communicate only by text or email.
2. Recognize the red flags
Fraudsters are getting smarter, but there are still usually some signs that you’re not dealing with a legitimate seller. Be alert to these clues:
Property-based red flags
- The property is vacant land or absentee-owned (investment, vacation, or rental).
- The desired listing price falls significantly below market value.
- The property is free and clear of any mortgage or liens.
- The owner’s address does not match the tax mailing address.
Seller-based red flags
- Pushes for a quick sale, often within three weeks.
- Refuses in-person meetings and communicates only by text or email.
- Claims to be out-of-state or abroad and will not join a video call.
- Requests a cash buyer or demands that proceeds be wired.
- Refuses or fails multifactor authentication or ID verification.
- Insists on using their own notary.
- Presents ID or signatures that do not match existing records.
Spotting these indicators early allows your team to pause, 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 like county tax assessor records, deed records or official mailing addresses. Take the extra step of reaching out through those verified channels. For example, send a confirmation letter to the tax mailing address on file or call a number obtained from public records. This simple cross-check can expose an impersonator before a transaction gets too far.
4. Check with the real estate agent
Since real estate agents are usually the ones who make initial contact with a potential seller, ask if they’ve 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 elevate your internal verification process. Close collaboration with trusted real estate partners is one of the most effective ways to stop fraud before it gains traction.
5. Don’t let the seller use their own notary
Fraudsters frequently attempt to use their own notaries for a transaction. Title companies should only use vetted, trusted notaries, and whenever possible, arrange signings at secure office locations. If your state permits Remote Online Notarization (RON), consider incorporating it into your toolkit as an additional 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 phone lookups, ID authentication platforms, and, when possible, multifactor checks. Ask property-specific questions only the true owner would know. Then cross-reference public records—compare the seller’s signature to prior recorded documents and confirm that the sales price aligns 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 transaction red flags. Consider hosting lunch-and-learns, posting reminders on social media, or even creating short, recorded videos to highlight the warning signs your peers should be watching 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, educate partners, and provide consumer-friendly materials. They’ve also introduced new title insurance endorsements offering post-policy protection against forged deeds and mortgages, and updated the ALTA Best Practices framework to stress stronger ID verification, staff training, and oversight of notaries and signing agents.
Incorporating these measures not only reduces risk but also shows your clients and partners that you’re taking every step to protect them.
The bottom line
Seller impersonation fraud isn’t going away; it will continue to evolve as criminals find new ways to exploit real estate transactions. The best defense is vigilance: verifying details at every step and equipping your team with tools that help flag suspicious activity before it’s too late.
For more than 40 years, SoftPro has supported title professionals with software and services that make closings more secure and efficient. Through SoftPro 360, our free vendor portal, you can access integrations like ionFraud in Fidelity National Financial’s (FNF) agentTRAX, which provides an early warning system to help identify potential seller impersonation risks at the start of a transaction. Other underwriters may also offer similar tools, so be sure to ask your affiliates about the resources available to you.
English (US) · 