How title agents are combating real estate fraud.

Fraud is getting more sophisticated, but so are the tools title agents can use to help detect risk, verify key details, and better protect transactions.

TL;DR:

• Real estate fraud is rising, with the FBI reporting nearly $175 million in losses in 2024, and the financial and emotional impact on consumers can be severe.
• Wire fraud, seller impersonation, forged deeds and identity theft can disrupt closings and put homeownership at risk.
• Title agents play a critical role in helping protect buyers, sellers, and homeowners by following ALTA best practices around strong controls, secure communication, identity verification, and ongoing vigilance.
• Through AgentNet® Services, First American Title agents have access to proactive fraud tools, including Order Insights, the SAFEvalidation® service, and the SAFEidentify™ service, to help identify

Housing conversations often focus on affordability through the lens of rates, inventory, and construction costs. While those issues matter, there is another high-stakes cost hiding in plain sight: fraud.

The numbers make the urgency clear. The FBI reported nearly $175 million in real estate-related fraud losses in 2024. Average fraud claims exceeded $143,000, while refinance-related fraud claims averaged $207,000.

Wire fraud. Seller impersonation. Forged deeds. Identity theft. These increasingly sophisticated schemes can derail a closing in seconds or trigger years of fallout after the deal is done.

The American Land Title Association (ALTA) has long emphasized the importance of strong controls, secure communication practices, identity verification, and ongoing vigilance across the transaction lifecycle as the blueprint for protecting consumers and strengthening the integrity of every closing.

For title agents on the front lines of consumer protection, that means taking a proactive approach to fraud prevention and leveraging resources such as the fraud tools available to First American Title agents through AgentNet® Services.

Better protection starts with better insight.

When fraud is detected late, the cost can be significant. The earlier a title agent can identify potential concerns, the better positioned they are to respond.

As fraudsters move quickly and constantly change tactics, title agents need better visibility into transaction-level risk to help keep pace. Tools like the Order Insights platform can help surface potential concerns earlier in the process, supporting the disciplined, risk-aware workflow ALTA best practices call for and helping title agents strengthen their role as trusted protectors of the transaction.

Wire verification can help stop losses before they happen.

Wire fraud remains one of the most financially destructive threats in real estate. A single fraudulent instruction can send funds to a criminal account in minutes, often with little chance of recovery. As fraudsters become more sophisticated, title agents need strong processes in place to verify wire instructions and help reduce exposure before funds are sent.

One solution is to implement the independent wire verification process provided through the SAFEvalidation® service, which is included at no additional fee with all First American underwriting transactions.

The SAFEvalidation service helps verify wire instructions before money is sent, adding a critical layer of protection against one of the most common and costly fraud schemes in the industry. For title agents, that means greater confidence in the wire process, stronger controls around fund disbursement and added support in helping reduce wire fraud risk.

Identity verification helps defend against impersonation risk.

Fraudsters are no longer relying on crude tactics. Many impersonation attempts today are polished, convincing, and specifically designed to exploit pressure points in the closing process.

Verifying identity with greater confidence is one of the clearest ways to reduce that risk. This is the kind of practical, preventive step that aligns directly with ALTA’s focus on strong controls and verification standards.

The SAFEidentify™ service helps First American Title agents strengthen identity verification, supporting better decision-making when it matters most. That added confidence can help expose suspicious activity earlier, reduce the likelihood of fraudulent parties moving through the process unchecked, and support a more secure closing experience for legitimate buyers and sellers.

The urgency is real, and so is the opportunity.

Real estate fraud is rising. The financial damage is severe. The emotional toll is even greater.

But this is also a moment for title agents to lead.

The fraud tools available to First American Title agents through AgentNet® Services do more than help reduce risk. They help title agents lead with confidence.

To learn more about proactive fraud solutions available to First American Title agents through AgentNet® Services, including Order Insights, the SAFEvalidation service, and the SAFEidentify service, visit https://agentnetsolutions.com/agentnet-services.

Already a First American Title agent? Explore fraud prevention resources in the AgentNet Knowledge library at knowledge.agentnet.firstam.com.