Key facts
- Seller impersonation fraud attempts have more than doubled since 2024.
- Criminals are increasingly using AI for voice cloning and deepfakes to impersonate property owners and steal closing funds.
- 59% of title firms reported at least one seller impersonation fraud attempt in the prior calendar year, up from 28% in 2024.
- The share of firms reporting an attempt in the prior month rose from 19% to 45%.
- Vacant land remains the top fraud target, with 82% of firms rating it as at least somewhat common.
- 87% of firms reported spoofed contact information as a common fraud tactic.
Seller impersonation fraud has more than doubled since 2024, with criminals increasingly using artificial intelligence (AI) to impersonate property owners and steal closing funds, according to the American Land Title Association’s (ALTA) 2026 Critical Issues Study released Sept. 14. The study found that 59% of title firms reported at least one seller impersonation fraud attempt in the prior calendar year, a significant increase from 28% in 2024. The proportion of firms experiencing an attempt in the preceding month also rose sharply, from 19% to 45%.
Steve Gottheim, general counsel for ALTA, stated that the data aligns with the daily experiences of the association’s members, emphasizing the need for a comprehensive approach to fraud detection. Tom Cronkright, co-founder and CEO of Sun Title and CertifID, noted the expanding sophistication of fraud threats, highlighting the use of AI voice cloning combined with phone number spoofing to create convincing real-time conversations with buyers, often leading to requests for early wire transfers of closing funds.
The ALTA report indicated that 58% of firms consider deepfake technology (image or voice) at least somewhat common, while spoofed contact information was reported by 87% of firms. Cronkright recounted a March incident in West Michigan where a couple was convinced by an AI voice impersonating their mortgage lender to wire closing funds days before the official closing.
Gottheim suggested that combating increasingly convincing deepfakes will necessitate AI-driven detection tools, which are available and not prohibitively expensive. Vacant land remains the primary target for fraud, with 82% of firms identifying it as a common target. Properties with absentee owners (72%), those owned free and clear (68%), and properties of recently deceased individuals (55%) are also frequently targeted. Cronkright mentioned that scammers often exploit obituaries and death certificates to target heirs.
Real estate agents play a crucial role in early detection, though AI-assisted spoofing makes phone-based red flags less reliable. Sending physical mail to the property address is cited as a helpful tactic. The report found that 94% of firms employ multiple layered defense tools, averaging 5.3 per firm, with ID verification, direct seller contact, and multifactor authentication being highly rated. Cronkright stressed the importance of embedding identity verification early in the transaction process, utilizing methods like device analysis, biometrics, and credential analysis against trusted databases.
Approximately 87% of fraud is detected during the clearance or curative process, significantly more than at signing or order entry. Gottheim noted that title companies are successfully catching the majority of these attempts before closing, but further technological advancements and simple tactics can improve prevention. Cronkright emphasized that prevention is key, contrasting the minimal time spent verifying identities at closing with the extensive title searches conducted.