Title Fraud Investigation

Title Fraud Investigation

Seller Impersonation and Title Insurance Fraud is a rising concern in real estate transactions. This occurs when fraudsters pose as legitimate property sellers or agents to deceive homeowners and defraud them of their money. This type of fraud can have severe financial and legal consequences for the victims involved, and it is important to be aware of the warning signs. Security is our top priority, and our team of Professional Title Searchers, Investigators, Researchers, and Examiners of Property Title are trained to Audit and find any discrepancies in your home title deeds, mortgages or liens that may be considered fraudulent. It is our priority to keep our clients and homeowners informed.

Here’s how seller impersonation fraud can manifest in real estate transactions:

  • Property listing hijacking:
    Fraudsters identify legitimate property listings, typically from online real estate platforms, and duplicate the information, including photos and property details. They create fake listings with their contact information, posing as the seller or agent.
  • Communication with potential buyers:
    The fraudsters initiate contact with potential buyers, usually through email or phone, posing as the seller or agent. They may use various social engineering techniques to gain the trust of the buyer, including providing false identification documents or references.
  • Fictitious escrow services:
    To create a sense of legitimacy, the fraudsters may introduce the concept of an escrow service to the buyer. They will claim that the buyer's funds will be held in Escrow until the completion of the transaction. However, the escrow service is entirely fictitious, and the fraudsters use it to deceive the buyer into making a payment.
  • Request for payment:
    The fraudsters request the buyer to make a payment to secure the property, typically by wire transfer or through an online payment platform. They may claim that there is an urgent need for the payment due to a competitive offer or impending sale.
  • Manipulation and urgency:
    Like other forms of fraud, the fraudsters use manipulation and urgency to pressure the buyer into quick action. They may claim that other buyers are interested in the property or that the price will increase if immediate payment is not made.
  • Diversion of funds:
    If the buyer falls victim and makes the payment, the fraudsters quickly redirect the funds to their own accounts, making it challenging to recover the money. They may use various methods, including money mules or offshore accounts, to further obfuscate the trail.

To protect against seller impersonation fraud in real estate transactions, buyers should take the following precautions:

  • Independent verification:
    Independently verify the legitimacy of the seller or agent by conducting thorough research. Use official channels, such as established real estate agencies or reputable listing platforms, to confirm the authenticity of the listing and the contact details provided.
  • In-person meetings:
    Whenever possible, arrange face-to-face meetings with the seller or agent to view the property and discuss the transaction details. Physical interactions can help establish trust and reduce the risk of falling victim to impersonation fraud.
  • Secure communication channels:
    Use secure communication channels, such as verified email addresses or official phone numbers, to communicate with the seller or agent. Be cautious of any sudden changes in contact information or requests to switch communication methods.
  • Financial security measures:
    Avoid making large upfront payments or wire transfers without proper verification. Consider using established and reputable escrow services for added protection, ensuring that the service is legitimate and independently verified.
  • Legal and professional advice:
    Always hire your own real estate Attorney for legal advice to ensure the transaction is legitimate. Many Title or Settlement Companies will tell you they use their own attorney, but that attorney does not represent you and your best interests. Your attorney works for you, and they can help review documents, identify potential red flags, and provide guidance throughout the process.
  • Hire Fusion Title Search to do your title search.
    You have the right to choose who does the title search on your home. Fusion Title Search has 1,000,000.00 E&O Insurance and we only use Professional in house and land searchers. We do not complete any title search online.
  • Trust your instincts:
    If something seems suspicious or too good to be true, trust your instincts and proceed with caution. If you have any doubts about the legitimacy of the transaction or the individuals involved, it's better to err on the side of caution and seek further verification.

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Call Fusion Title Search if you are concerned about any possibility of fraudulent transactions related to your real estate closings.

If you believe you have encountered fraud in a real estate transaction, call Fusion Title Search and we will research, investigate and prepare and audit report of your home property title. We will also help you report the incident to local law enforcement and provide them with all relevant documentation and communication records. Additionally, notify the real estate agency or platform where the fraudulent listing was found so that they can take appropriate action.