When wire fraud occurs, the loss of funds can be deeply distressing. That pain is now often compounded by the legal baseline for 鈥渞easonable care鈥� dramatically shifting. Courts no longer view wire fraud or deepfakes as unavoidable cyber events or tragedies.

Title agents now face escalating legal risks and negligence liability. Cybercriminals are increasingly leveraging deepfakes in social engineering and business email compromise (BEC) to orchestrate real estate wire fraud and seller impersonation schemes.

If an agency fails to use basic, reasonable defenses like multi-factor authentication or automated ID and bank verification platforms, judges are increasingly finding them liable for lost funds under negligence and breach claims.

In addition to the security measures used, a court or jury will likely also consider the overall reasonableness of the title company鈥檚 wiring procedures. They will review the steps agencies took to safeguard wire transfers and verify their authenticity.

Did the agent double-check the sender鈥檚 email address? Did the agent follow proper procedures to detect communication peculiarities, like grammatical errors or whether an unsecured email was used? Did more than one employee review the communication? Did they confirm the wiring instructions in a second, alternative mode of communication? These are just a few questions that a court might ask when assessing liability.

Agencies can reduce their exposure by strictly adhering to procedure. Carefully reviewing and authenticating all communication not only minimizes susceptibility to wire fraud schemes but also the chances that a court or jury will find the agent negligent.

All agents are at risk of ID and wire fraud-related cybercrime. Whether they are direct victims of the fraud or simply involved in a fraudulent transaction, agents face a real possibility of being held liable. Wire fraud schemes also continue to grow more pervasive and sophisticated with each passing year, which makes reasonable and prudent anti-fraud controls critical to prevent financial losses. Some best practices include:

• Requiring two forms of communication/authentication before issuing a wire;
• Using multi-factor authentication;
• Using an anti-fraud tool on every transaction;
• Educating and training employees in data security and maintaining evidence records; and
• Using secure, encrypted email with passwords and digital signatures for messages.

Using these precautions decreases the risk of fraud and makes it easier to defend against civil litigation should your agency unfortunately fall victim to one of these schemes. Title agents should also carry standalone, comprehensive cyber insurance. This adds an essential, additional layer of protection against both fraud-related crimes and their resulting liabilities.

Have questions about strengthening your agency鈥檚 wire fraud prevention practices or technology due diligence? Contact Tom Weyant at tweyant@alliantnational.com.

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Cyber insurance can be an important protection for title agencies, but it is not a guarantee that every fraud-related loss will be covered. A recent federal case, (S.D. Ohio Mar. 13, 2026), offers a useful reminder of how quickly coverage issues can arise when a title agency experiences a wire fraud incident and waits too long to notify its cyber insurer.

The case involved a buyer who was defrauded out of more than $480,000 after receiving spoofed wiring instructions that appeared to come from the title agency. The buyer later sued the agency for negligence. Although the agency carried cyber insurance, the cyber insurer denied coverage. The court agreed with the insurer, finding that the claim was not reported within the required timeframes and that the agency had prior knowledge of the incident.

The agency was aware of the incident when it occurred, or shortly after, but waited until it was sued by the buyer before notifying its cyber insurer. By that time, the cyber-policy period in place when the incident occurred had ended, and a new cyber-policy period had begun. Even though the same insurer issued the follow-on policy, the court found that the agency had not satisfied the policy鈥檚 reporting requirements.

The result reinforces that strict compliance with policy conditions 鈥� especially prompt notice and timing requirements 鈥� is essential for coverage to apply.

Cyber insurance does not automatically cover fraud losses

Many title agencies may assume, 鈥淲e have cyber insurance, so we鈥檙e protected.鈥� That assumption can be dangerous.

Cyber coverage depends on the specific terms of the policy. In this case, the agency鈥檚 coverage turned on policy wording, timing and reporting requirements. The loss involved a fraud scheme tied to spoofed wiring instructions, but that fact alone did not determine the outcome. The court focused on whether the agency complied with the policy鈥檚 conditions.

The bottom line is straightforward: cyber insurance is not a general safety net. It is a contract with strict rules that agencies need to understand and follow.

Timing can determine whether coverage exists

Most cyber policies issued to title agencies are 鈥渃laims-made and reported鈥� policies. This typically means that the claim must be made during the policy period and reported during that same period, or within another timeframe set by the policy.

In this case, the fraud occurred in March 2024. The lawsuit against the title agency was not filed until October 2024, and the agency reported the claim at that time. By then, the policy period in place when the incident occurred had already expired.

The agency also had a subsequent policy with the same cyber insurer. But that did not solve the problem. The result was that there was no coverage under the earlier policy, and the later policy did not pick up the incident simply because it was issued by the same insurer and began immediately after the prior policy ended.

For agencies, this is one of the most important lessons from the case. The claim should have been reported during the same policy period in which the incident occurred, and within the timeframe required by the policy. A policy renewal does not reset the clock on an incident the agency already knows about. Each policy period stands on its own.

Report potential incidents early

The agency鈥檚 delay in reporting was central to the coverage dispute. The title agency discovered the fraud in March 2024 and investigated internally, but waited until November 2024 to notify its cyber insurer. The policy required notice within 30 days of discovering a potential issue.

That word 鈥� potential 鈥� matters. The reporting obligation was not dependent on a lawsuit being filed. It was also not dependent on months of attempts to resolve the issue or recover the funds. The obligation was triggered when the agency became aware that something had gone wrong, or that something may have gone wrong.

The lesson is that agencies should not wait for perfect information before giving notice. When something seems wrong, the clock may already be running.

鈥淲e were not hacked鈥� may not be enough

Another important point from the case is that cyber risk is not limited to a direct breach of an agency鈥檚 computer systems.

The title agency argued that its systems had not been compromised, and its IT vendor confirmed there had been no intrusion. But that did not change the outcome. The claim centered on email spoofing, fraud carried out through impersonation and the agency鈥檚 alleged failure to prevent the scam.

That distinction matters. Fraudsters can infiltrate real estate transactions without directly hacking an agency鈥檚 systems. They may use email spoofing, social engineering, fake wiring instructions or other methods designed to exploit trust and urgency. These schemes can be difficult to avoid even when best practices are followed.

Even where an agency鈥檚 systems are secure, it may still face liability for email fraud, wire fraud schemes and social engineering attacks. Cyber risk extends beyond traditional hacking.

Prior knowledge can defeat coverage

The court also addressed the agency鈥檚 attempt to rely on the later policy period. That effort failed because the agency already knew about the incident before the new policy began.

Most policies exclude known incidents that existed before coverage started. That is why an agency generally cannot wait until renewal and expect a new policy to cover an old problem. If the agency has prior knowledge of a loss, claim, circumstance or potential issue, that knowledge can become a coverage barrier.

The lesson is clear: an agency cannot rely on renewing its policy to cover past problems. Report potential claims in the policy period in which the issue arises, and do so within the timeframe required by the policy.

Know who owes coverage

The title agency sued both the cyber insurer and the insurance producer. The court ruled that only the insurer had contractual obligations under the policy. The producer did not have a duty to provide coverage.

That means agencies should understand who issues the policy, who handles claims and who actually owes coverage. The producer may help place coverage and answer questions, but the insurer issues the policy and bears the contractual coverage obligations. When a claim occurs, agencies need to know exactly where notice must be sent, who must receive it and what the policy requires.

Because the producer did not owe coverage, suing the producer did not advance the agency鈥檚 coverage position and, from a practical standpoint, was a waste of time, money and effort.

Bad faith claims are difficult when policy terms are clear

The agency also argued that the insurer acted in bad faith. The court disagreed because the denial was based on clear policy terms and the timeline supported the insurer鈥檚 position.

If an agency misses a policy deadline or fails to satisfy a reporting condition, a bad faith argument is not likely to change the outcome. The better course is to understand the policy requirements and follow them from the beginning.

What title agencies should do now

The case offers several practical steps for title agencies. First, create a 24-to-48-hour reporting rule. The first 24 to 48 hours after a suspected incident are often the most important for taking action to optimize the chances of a successful recovery. If your agency sees a suspicious email, wire fraud attempt, client complaint or possible misdirected funds, notify your cyber insurer immediately. Do not wait for confirmation or legal action.

Agencies should also contact 星空传媒 星空传媒鈥檚 Fraud Hotline at FraudHotline@alliantnational.com without delay. Early notice alerts and enables the 星空传媒 星空传媒 team to provide assistance when time is critical and when agencies most need advice and direction on next steps.

Second, train staff to recognize fraud red flags. Most losses involve familiar patterns: email spoofing, fake wiring instructions and social engineering. Staff should always verify wiring instructions verbally by calling a known and confirmed phone number. Email changes should be treated as suspicious. The mindset should be simple: VERIFY, THEN TRUST: Every file, every party, every time.

Third, review your cyber policy in plain English. Ask your broker what counts as a claim, when reporting must occur, whether social engineering losses are covered and what exclusions apply. Agencies should understand both their coverage and their obligations before a problem occurs.

If the policy language is unclear, ask questions now. Be proactive with your cyber insurer鈥檚 insurance producer and the cyber insurer about what is covered under the policy you are purchasing and what actions may affect coverage. Even if there is no cyber-insurance coverage for a particular incident, the title agency may still be found responsible and held financially liable for the loss.

Fourth, document everything immediately. When an incident occurs, record dates, timelines, emails, communications, internal actions and any steps taken to investigate or respond. Documentation can directly affect coverage eligibility.

Finally, do not assume that renewal fixes a problem. A new policy does not reset obligations under a prior policy and generally does not cover known incidents that happened during a preceding period. Each policy and coverage period stands on its own. Agencies should also ask their cyber insurer鈥檚 insurance producer about extended reporting period options, sometimes called 鈥渢ail鈥� coverage, and retroactive date coverage for prior incident protection when renewing policies.

The bottom line

The biggest lesson from this case is simple: cyber insurance only works when agencies follow the policy requirements exactly. Agencies do not always lose coverage because they lack insurance. They may lose it because they report too late, misunderstand what triggers coverage or assume that a lawsuit matters more than early warning signs.

If you take just one action after reading this, build plans for immediate reporting and documentation. That single change can determine whether your policy protects you or leaves you exposed to a six-figure loss.

Additionally, 星空传媒 星空传媒 offers a complimentary cyber insurance gap review for our agents. It is designed to assist title insurance agents in reviewing their cyber insurance coverage to identify gaps, limitations, subjectivities, and potential risks that may not be fully covered.

For more information on the service or to request this gap review, please contact Tom Weyant: tweyant@alliantnational.com  

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Today鈥檚 businesses face a unique challenge. They must find ways to showcase their trustworthiness to audiences that are increasingly distracted. That challenge becomes even more important in title insurance.

Businesses are continually signaling to audiences in various ways whether or not they are trustworthy. At the audience level, those trust signals can include everything from a modern website and responsive communication to customer reviews, branding and clear messaging. But once an audience member becomes a customer, another level of trust is required. Customers need to understand both your commitment to protecting the integrity of their transaction and the critical steps they need to take to help keep it secure. Let鈥檚 see what it takes to do both.

Step 1: Segment strategically

Creating trust signals that feel meaningful but still respectful of your audience鈥檚 time starts by understanding them. Your audience is not a monolith. It is an array of constituencies, each with their own motivations, fears and needs. Considering 鈥渂uyer personas鈥� is a great way to begin building trust. You will then better understand what each audience member is looking for from a title agency and know how to position your services in a way that grabs a buyer鈥檚 attention.

When building out these personas, resist overthinking it. Simply ask what each audience segment is worried about, what they need to do next and how much they already understand. That way, you can cut right to the chase and highlight why you are best positioned to meet their needs and address their fears. For example, is your buyer purchasing their first home or are they a seasoned homeowner facing the digital closing process for the first time?

Step 2: Put fraud prevention front and center

As you build your customer personas, you will also need to convey to each of them the inherent risks in today鈥檚 fraud landscape. At 星空传媒 星空传媒, we encourage agents to adopt a simple principle: VERIFY, THEN TRUST: Every file, every party, every time. The challenge is bringing consumers into that mindset in a clear and practical way. Real estate transactions, where hundreds of thousands or even millions of dollars are exchanged, remain attractive targets for scammers, and customers may not fully understand the threat level, especially when they are caught up in the many moving pieces of a transaction. This represents an obvious opportunity to build greater trust. By making your agency鈥檚 fraud-prevention practices as visible as possible, you can help your customers feel more secure in your ability to protect the integrity of their transactions, while also helping them understand the role they play in keeping those transactions safe and maintaining the necessary protections of their personal information and assets.

Some best practices for getting customers the information they require without overburdening them include:

• Make fraud warnings obvious: Place short, clear reminders in all emails, website pages and other customer-facing materials and always encourage the exchange of critical information through your secure agency closing portal.聽
• Avoid jargon: Customers need a quick and crystal-clear understanding of your ID verification practices, secure portals and other anti-fraud procedures鈥攚ritten in plain English.聽
• Give customers a safe point of contact: Provide a designated point of contact upfront, along with instructions on which number to use and which situations merit a pause, particularly before sending funds. Customers should be reminded that if something changes or feels unusual, they should not rely on a recent email or another communication stream. They should return to the original contact information you provided and verify before taking the next step. For example, your customers should always be reminded that you will NEVER change your wire instructions at the last minute. Direct them to the trusted point of contact should they receive such a direction.
• Create standard fraud-prevention language: Ensure your customers receive the same guidance at every touchpoint. Team training is important here. Your team should continually reinforce the same messages and procedures, so the guidance does not get muddled and consumers do not become disengaged. The threat level is high and customers need to appreciate that from the minute their transaction is initiated.

With these steps, even the most distracted and scattered audience will more easily understand your commitment to keeping their transactions secure. That builds trust in your organization while also helping customers understand the steps they can take鈥攁nd need to take鈥攖o help protect their transaction. Your customers have a critical role to play, but trusting that you will guide them appropriately and safely will be a valuable tool in their protection.

Step 3: Visuals are very important

Ensuring your agency exudes credibility and trustworthiness begins with your website. Adhering to modern web design practices, using consistent fonts and colors and ensuring mobile responsiveness are all non-negotiable. Reviewing client-facing forms for accuracy, correct branding and messaging, particularly around fraud, and a smooth user experience is also important, as is auditing the communications and physical documentation that come from your agency.

Be the resource that your customers require. Secure links to checklists for closings, fraud prevention tips, and frequently asked questions and answers make certain to your customer that you are their reliable resource throughout the closing process. You are the resource they can trust at every stage.

Step 4: Review your reviews

Remember: The communication channels you 鈥渙wn鈥� are just the tip of the iceberg for establishing trust. Today鈥檚 audiences are channel switchers. When choosing a company in which to place their trust, they will vet not only your site and social media channels, but also third-party sites, reviews and customer feedback.

You need to be similarly active in these spaces. Whether it be your Google Business Profile or various review sites, you must be ready to respond to questions, offer advice or address complaints. If you do this well, time-crunched prospects will see you as a convenient and communicative business partner. If you don鈥檛, you risk disengagement. Make a customer satisfaction survey part of the post-closing outreach to your customers. Allow them to sing your praises or learn from your mistakes to enhance the next transaction experience. 

Step 5: Highlight the human

Last but certainly not least, few things help build trust and relationship as much as highlighting the human element of your business. As we all know, relationships are everything in the title and settlement industry.  Sometimes in real estate transactions, the human factor can feel lost under procedures and paperwork, which is a big problem when trying to elevate your agency鈥檚 credibility. Overcoming this means connecting customers to the specific people they will engage with as their closing moves to completion. Clarifying roles and reinforcing the verification steps customers should follow before acting on transaction instructions is also critical to a positive and trust-based customer experience.

VERIFY, THEN TRUST is at the heart of our business

It can be a real struggle to help customers feel comfortable and confident enough to entrust you with their transactions鈥nd their MONEY! One reason is that it鈥檚 becoming an enormous lift to even connect with customers in our fragmented and fluid digital age. That鈥檚 where these trust-building steps can make a difference. By showing customers that you are committed to protecting their transactions鈥攁nd by helping them understand their own role in the process鈥攜ou can build trust, which will benefit your customers and your agency鈥檚 future success through referrals from satisfied customers.

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By Bryan Johnson, IT Director, 星空传媒

Although the risks of our digital-first economy are becoming increasingly well known, many people still are not sharing information safely. Far too many businesses rely on email and PDF attachments when sending transaction information, despite the problems they can pose for organizational security and efficiency. Thankfully, there is a better way forward: portals, permissions, and link expirations. These can all go a long way toward tightening your agency鈥檚 information controls while improving workflows at the same time. Here鈥檚 what that can look like in practical terms for your team.

What counts as sensitive info?

First, let鈥檚 dig into what counts as sensitive information that should NEVER go into emails or attached PDFs. Some of the common examples include:

• Anything that could be construed as non-public personal information (NPI), like social security numbers (SSNs), dates of birth (DOB), bank information and more.
• All wire instructions, payoff information, or disbursement data.
• Any statements from lenders or closing documents.
• All information that could be leveraged to impersonate transaction stakeholders, like signatures, account numbers, or scanned copies of IDs.

A common rule of thumb is this: If it could possibly harm someone or derail your transaction, find a different way to share it.

Pursue a portal-centric approach

Rather than risk compromising your security or efficiency with PDF attachments, pursue implementing a document-sharing portal for your agency. These portals can be broken down into two buckets. There are industry-specific document-sharing portals offered by brands like Qualia and SoftPro. And there are general document-sharing portals such as ShareFile, Dropbox, Google Drive and Microsoft OneDrive.

The portal type you choose should come down to your businesses needs. If you are a high-volume agency with multiple offices and large coordination needs, you鈥檒l likely benefit the most from a more tailored solution. Custom platforms like these often excel at unifying document versions and creating a single source of truth to move transactions faster at scale.

On the other hand, if you are a small shop, a more generalized portal may be sufficient. Either approach involves tradeoffs, but you can benefit from looking inward and carefully assessing your team鈥檚 needs before pulling the trigger.

Implement best practices with your portal

After making your decision on a document-sharing portal, you should establish safeguards around permissions and links. Title agents are busy people, so implementing built-in guardrails is important.

Keep things simple: while employees can still use email to coordinate around closings, links鈥攏ot attachments鈥攕hould be how important or sensitive information is shared. The beautiful thing about links is that they are endlessly customizable with today鈥檚 modern tools. Consider establishing the following defaults for your links:

• Make each link 鈥淰iew only鈥� as its default setting. Avoid allowing downloads unless completely necessary.
• Refrain from setting a link鈥檚 permissions to 鈥渁nyone with the link.鈥� This is critical for sensitive information.
• If your platform allows it, prohibit resharing links and require recipients to be invited users.
• DO NOT leave links live indefinitely. Consider a 7-day limit for IDs and wires and 2-4 weeks for other documents.  

Taking these steps ensures you will be getting the most value out of your portal. And more importantly, it guarantees that you are using all available means to protect your customers鈥� transactions and guard your company鈥檚 reputation.

Become a more secure and reliable title partner

Amid the hustle and bustle of a transaction workflow, it can be tempting to attach important documents and send an email. But believe me when I say that you want to resist that impulse. While email and attachments are convenient, they can pose real risks to your agency鈥檚 security and long-term viability. Implementing and optimizing a modern document sharing platform with the right permissions and guardrails can help you work more safely and efficiently. Making this investment in your document sharing practices also demonstrates a real commitment to the security of your customers and partners. This will translate not only into satisfied customers but also solidify your reputation as a reliable title partner.

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By Amanda Berry, Senior Claims Counsel, 星空传媒

The real estate market is currently experiencing record low transaction volume, driven by mortgage and affordability pressures. Given these conditions, one might assume that fraud rates have similarly decreased鈥攜et the data show the opposite. According to ALTA, scams like seller impersonation fraud remain a growing problem. 28% of title insurance companies, for instance, have experienced at least one seller impersonation fraud attempt in recent years.[i] A Milliman claims analysis shows fraud and forgery accounted for 21% of all dollars spent on claims expenses and losses. These numbers suggest that fraudsters are becoming more coordinated and sophisticated, leading to successful schemes even amid lower transaction rates. These schemes exploit common fears and insufficient verification practices to generate huge claims. Refinance transactions are particularly susceptible due to how much of their risk sits outside the public records and inside the transaction workflow itself.

From one-offs to multi-layered attacks

How do we explain this? Well, in 2026, real estate fraud is no longer primarily isolated, one-off scams. Layered and sophisticated attacks are becoming increasingly common. ALTA notes that title professionals are now confronting schemes ranging from wire fraud, seller impersonation, identity theft and forged deeds, while spending substantial time each month on fraud prevention. Many of today鈥檚 top schemes also cannot be detected through public-record searches and require stronger identity verification, monitoring and communication safeguards to keep pace. 

To make a long story short, just as high-tech cybercriminals often attack a target鈥檚 network through multiple vectors, today鈥檚 real estate fraudsters will seek to infiltrate a transaction through several touchpoints at once. These criminals are highly adept at appearing to be a legitimate party in the transaction. That is what makes these attacks multi-layered: they may involve compromised communications, false identities, forged documents and payoff confusion, rather than one obvious red flag. This assessment comports with Milliman鈥檚 data, which indicates that nearly 30% of losses could not have been prevented by consulting public records.[ii]

Refinances are particularly vulnerable

These dynamics make refinances particularly vulnerable to fraudsters. Refinance deals may look fine at first but include problems that resurface later. Some of these include impersonations, forged signatures, mortgage payoff fraud, or communication and closing misfires. These elements often cannot be detected via public records, which means a standard search alone often will not catch them.

Title agency workflows can also make refinance transactions vulnerable. Payoffs appear in more than 90% of transactions, and issues related to obtaining them can often slow the closing process.[iii] Communication between multiple parties may be required, and when a transaction requires handoffs between multiple parties, bad actors have an additional opportunity to insert themselves into the process. 

Milliman鈥檚 2025 analysis of claims and claims-related losses in the title industry confirms how successful fraudsters have been at targeting these transactions. Their analysis states that the 鈥渁verage claim severity is higher for refinances than for purchases鈥�[iv] and that 40% of those claims were made up of instances of fraud and forgery.[v]

Go the extra mile to safeguard transactions

With such high stakes involved, title agents should always treat refinance transactions as high risk and apply extra scrutiny to these files. Payoff and impersonation fraud can be easy targets for criminals. Agents must have procedures in place and always follow them: Verify, then Trust鈥攅very file, every party, every time. Always independently confirm payoff details and wire instructions, and treat all last-minute changes with extreme skepticism. The same goes for communications. When communicating about a refinance deal, do not take any change requests at face value. Instead, be sure to confirm changes through other channels. Use identity verification tools to confirm whether a person is who they say they are. By following these steps, you will be better positioned to prevent losses and claims.

Extra checks prevent extra costs

Time is always of the essence in any business, and perhaps nowhere more so than in real estate, where thousands or even millions of dollars can be on the line. Yet the unfortunate reality is that fraudsters are evolving their methods and targeting real estate transactions for this very reason. This is particularly true for refinances, with sources showing that the average claim now costs $206,976, including nearly $68,199 in defense costs.[vi] Slowing down and verifying refinance transactions that come across your desk is worth it if you can prevent that kind of financial damage. While no agent wants to face a fraud claim, be prepared if one does occur and have a response plan in place.

[i]

[ii]

[iii]

[iv]

[v] Ibid

[vi] Ibid

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Every wire fraud defense expert agrees on one thing: the number one factor in recovering diverted funds is time. Every minute counts once fraud is detected, and hesitation or delays can make it harder to track down and restore lost funds.

That鈥檚 why a wire fraud response plan is imperative for every title agent.

The American Land Title Association (ALTA) recommends that every title company develop, document and train every staff member in the critical first steps for effective responses to wire fraud incidents. , can help agencies prepare to respond quickly and effectively as outlined in key points highlighted in this article.

Elements of a Wire Fraud Response Plan

The first step in preventing fraud is maintaining strong policies and procedures for verifying the identities of parties to the transaction and wire instructions to protect all parties: Buyer, seller, lender, underwriter and title agent. 星空传媒 星空传媒 agents are urged to implement procedures making sure to Verify, then Trust – every file, every party, every time.

But if the unthinkable happens, the most successful response strategies are those established in advance and clearly communicated to all staff members, banking partners and transaction participants.

Like a well-trained sports team, every member of your organization should understand their role and be ready to act immediately if fraud is detected.

General protocols

• Establish a close relationship with your bank representatives and maintain regular communication about emerging fraud threats and response procedures.
  • Make sure you have a phone contact that is not an 鈥�800 number鈥� to avoid delays.
• Discuss wire retrieval scenarios with your bank and establish emergency contacts in the bank鈥檚 fraud department that can be reached immediately if fraud is suspected.
  • Share this information with every employee as first reactions are critical.
• Establish and document emergency contacts across your response network, including bank fraud departments, law enforcement, legal counsel and your underwriter.
  • The local FBI office and the Secret Service office in your region should be included in this contact network.

Rapid response actions

• Your staff should be trained to immediately alert company management and the ageny鈥檚 internal wire fraud response team if a suspicious or potentially fraudulent transfer is detected.
  • Encourage transparency as delay or fear of retaliation for errors can cause losses to increase.
• Contact the sending bank鈥檚 fraud department immediately and request a recall of the wire transfer due to suspected fraud. Ask the bank to initiate the FBI鈥檚 鈥淔inancial Fraud Kill Chain Process鈥� if applicable.
• Notify the receiving bank鈥檚 fraud department and request that the account receiving the funds be frozen pending investigation.
• Report the incident to appropriate law enforcement agencies, including your local police department, the FBI field office serving your jurisdiction, as well as Secret Service teams.
• File a complaint with the FBI鈥檚 Internet Crime Complaint Center (IC3) as quickly as possible via their website, .
• Inform the parties to the transaction using known, trusted phone numbers and established communication channels.
• Notify your underwriter and coordinate next steps. 星空传媒 星空传媒鈥檚 Claims Team and Underwriting Counsel are available to assist agents in evaluating and responding to suspected fraud events.
• Contact your own agency legal counsel to assess potential liability and assist with recovery efforts.
• Depending on the circumstances, notify appropriate insurance carriers such as cyber liability, escrow security bond or errors and omissions insurers.
  • Do not delay these notifications as missed deadlines on notices can result in a claim denial and financial losses for your agency.

Putting all of these resources in motion immediately is critical to securing the support of professionals or organizations with tools that could assist you in recovering the diverted funds.

The FBI鈥檚 Internet Complaint Crime Center, , is one of your most important contacts. According to the FBI鈥檚 2024 Internet Crime Report, the IC3 Recovery Asset Team initiated the Financial Fraud Kill Chain on 3,020 complaints involving $848.4 million in attempted theft[i]. Financial institutions were able to freeze $561 million of those funds, representing a 66% success rate.

The effectiveness of this process depends heavily on how quickly fraud is reported, which is why having a response plan in place and acting immediately is critical.

Even the most vigilant companies may fall victim to fraud, but having a clear response plan and trained team in place can significantly improve the chances of recovering lost funds.

As always, immediately reach out to your 星空传媒 星空传媒 Claims Team and Underwriting Counsel if you have any questions or concerns. Together we can fight fraudsters, but always remember to take the steps to stop fraud and Verify, then Trust – every file, every party, every time.

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By: Elyce Schweitzer, 星空传媒 星空传媒 Regulatory Compliance Officer

Artificial intelligence has made fraud more convincing and more difficult to spot. As we explored in our earlier piece on deepfake-enabled fraud, today鈥檚 bad actors can impersonate real parties, voices, and documents with a level of sophistication that would have been unimaginable just a few years ago.

In response, lawmakers and regulators are strengthening the legal tools available to prosecutors, civil enforcers, and courts. These developments don鈥檛 rewrite core fraud principles, but they do change how those principles apply to real estate closings 鈥� and they reinforce the value of careful verification.

Understanding this evolving landscape helps explain why it鈥檚 so important to Verify, Then trust 鈥� every file, every party, every time.  

Fraud and Impersonation: Statutory Tools That Matter

States are updating their criminal and civil fraud statutes to make it clearer that impersonation using modern technology is not a technical loophole but a prosecutable offense.

For example, in Texas, (effective September 1, 2025) amended Chapter 32 of the Texas Penal Code by adding Sections 32.56 and 32.57. Section 32.56 makes it an offense, with intent to enter or remain on real property, to knowingly present to another person a false, fraudulent, or fictitious document purporting to be a lease agreement, deed, or other instrument conveying real property or an interest in real property. Section 32.57 makes it a first-degree felony to knowingly list, advertise, sell, rent, or lease residential real property without legal title or authority.

In practice, these sections clarify that impersonation involving falsified property documents constitutes fraud, even when the deception relies on digital or AI-assisted tools. Notably for title agents, when such cases are investigated or litigated, the analysis may extend beyond the fraudulent act itself to examine how the transaction progressed, including what steps were taken to confirm identity and authority before reliance occurred.

The Role of Notarization and Remote Online Notarization

Notarization has become a critical built-in safety mechanism for property transactions. States that authorize Remote Online Notarization (RON) typically require defined identity-verification procedures, which may include multi-factor authentication, recorded sessions, and retained audit logs.

These requirements do more than check a box. They create layers of verification that are observable after the fact. When fraud does occur, prosecutors, judges, and civil litigants may scrutinize whether these verification layers were followed.

In other words, notarization statutes don鈥檛 replace professional diligence 鈥� but they codify expectations for how identity and intent should be confirmed and documented.

Expanding Definitions of Deceptive Communication

Other states have updated their fraud laws to explicitly cover realistic representations made with advanced technologies. , effective April 2, 2025, defines 鈥渄eceptive audio or visual media鈥� as the use of highly realistic representations of speech, conduct, or writing where the subject did not actually engage in that conduct. The statute criminalizes generating, soliciting, disclosing, or using deceptive audio or visual media for the purpose of attempting or furthering the commission of a crime or offense, or with knowledge it will be used for that purpose.

takes a broader approach by recognizing that sophisticated communications techniques, including those enabled by technology, play a central role in modern fraud schemes. The statute consolidates fraud and organized fraud offenses, aligns state law with federal mail and wire fraud precedents, and includes enhanced penalties for certain first-degree felony offenses. It also provides civil remedies related to identity misuse and sets limitation periods and tolling rules that account for defendants who are absent from the state or lack an ascertainable address.

These statutory definitions reinforce something title professionals already know from experience: fraud is not defined by medium but by intent and effect. A voice message, video call, or carefully worded email can be just as fraudulent as a forged signature on paper. What matters is whether it induces action based on false representations.

Federal Reporting and Awareness Efforts

At the federal level, activity has focused on understanding and reporting on the risks associated with AI technologies. For example, legislation passed in connection with the 2021 星空传媒 Defense Authorization Act (NDAA) the Department of Homeland Security to produce annual reports on digital content forgery technology. 鈥� the core technology behind deepfakes.

For those of you who enjoy reading more technical material, the is available for your enjoyment.  A review of the report makes it clear that the technology and its potential for harm to our industry is complicated.

These federal efforts help catalog the risks and raise awareness across industries, but they do not change state criminal or civil liability in property transactions. Instead, they improve the information environment in which professionals and regulators operate.

What This Means for Title Professionals

When closings are reviewed after fraud occurs, the focus will likely shift to whether steps were taken to verify identity, authority, and intent, and whether those steps were reasonable under the circumstances. This reflects how fraud is often evaluated after the fact: technology may enable new methods of deception, but it does not change the underlying wisdom: Verify, Then Trust before acting.

The Bottom Line

Regulatory and statutory changes are not abstract developments. They reflect how lawmakers and enforcers are applying long-established fraud principles to modern threats.

Deepfakes and AI-enabled impersonation present real risks in real estate transactions. The truth is, when fraud is investigated or litigated, attention will likely shift beyond the technology itself to how the transaction unfolded, including whether identity and authority were meaningfully confirmed before reliance occurred.

For agents who incorporate verification as a routine part of their workflow, 鈥淰erify, Then Trust鈥� functions as a practical risk-management framework. It aligns with the way fraud is examined after the fact and supports defensible decision-making when transactions are questioned. Applied consistently, this approach helps protect the transaction, the parties involved, and the professionals responsible for bringing the deal to completion.

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By Mauri Hawkins, Chief Claims Counsel, 星空传媒

Title pros know that fraud is a big problem in our industry, but the available data is still eye-popping. In 2024, the American Land Title Association (ALTA) reported that fraud and forgery claim costs averaged over $143,000 per incident.[i] Such losses can significantly impact a typical agency鈥檚 business, which makes prevention your best defense. To help, we鈥檝e outlined 2026鈥檚 top fraud threats as well as strategies for spotting them early and protecting every file, every party, every day.

Why redouble our focus on fraud in 2026?

Fraud in 2026 harms businesses in a way that goes beyond dollars and cents. Fraud can also inflict major reputational damage, leading to lost referrals and, quite possibly, the closure of your business itself. In short, fraud and forgery can derail your company鈥檚 goals and prospects in both the short and long term. These serious consequences highlight why we must scrutinize the details of every file that comes across our desks鈥攑articularly from the insidious schemes we will explore below.

Seller impersonation is a danger

First up is seller impersonation. Increasingly common, seller impersonators pose as property owners and sell properties out from under the real owners without their even knowing. Given how widespread it has become, agents must never eyeball ID documents. ID-verification tools must be used on every file, every party, every day instead. Agents must also take time to scrutinize notary seals and the notaries themselves. When possible, avoid mail-away closings and use a reputable remote online notarization (RON) provider. Also, validate IDs at the time you receive an order, as this helps stop fraud in its tracks! And finally, educate your real estate agents, lenders and consumers on the very real risk of losing their money.

Vacant land sales pose a real threat

Vacant land remains another top fraud target in 2026. It is driving a huge share of claims nationwide and can get wildly expensive.

To cut down on these claims, ID-verification tools are again your best friend. Apply them to every file at the beginning of each order. That way, you can properly verify the parties involved and not waste time on bogus deals.

You should also always contact vested owners at a trusted address, whether by email or by mail, to confirm the sale. Finally, stay on guard for red flags like recent address changes or sudden changes to entity information located in the Secretary of State records. Those are go-to moves that sophisticated fraudsters love to deploy.

Fight back against payoff fraud

At 星空传媒 星空传媒, we are also seeing a sharp rise in payoff fraud. These involve bad actors injecting themselves into the payoff process and rerouting funds away from the real lender or servicer and into their own bank accounts. Fraudsters have gotten good at compromising payoff mechanisms鈥攆rom email to fax. Given that, the principle of Verify, Then Trust matters more than ever before.

Some best practices to remember include:

• Never accept payoff info from a party to the transaction.
• Prior to sending funds, confirm with the lender, using independently verified contact information, the wire information or payment address.
• Follow the verified lender instructions exactly and double-check payment details before disbursing.
• Treat any last-minute changes or 鈥渘ew鈥� payoff directions as a major red flag, and contact the lender directly at the independently verified contact information before taking any further action.

For more best practices, managers should review  on handling payoffs securely and share it with their agents.

Staying cyber smart

No conversation about fraud in 2026 would be complete without touching upon cybersecurity concerns, particularly from phishing emails. Cyberattacks are one of the most common ways fraudsters can attack our industry. In fact, data reveals that over $16 billion in losses resulted from cybersecurity issues alone.[ii]

The silver lining is that we have a powerful way to prevent cybercrime and stem these losses. The numbers show that one of the most consistent reasons why a cyberattack is successful has to do with human error. Implementing security awareness training for your agency can reduce the likelihood of a fraudster pulling a fast one by 70-90%.[iii]

Strong cyber insurance is also essential for agencies to protect themselves from fraudsters. Review your policy鈥檚 terms and conditions thoroughly, institute processes and procedures for the team to follow in each transaction, and document each file with the actions taken to show that the processes and procedures were followed. This is highly important for when a claim is made under the cyber insurance policy.

You have a partner in the fight against fraud

At 星空传媒 星空传媒, we鈥檙e here to support you in the fight against fraudsters. We have resources that can help:

• 星空传媒 星空传媒 Crime Watch Program: If an 星空传媒 星空传媒 agent鈥檚 employee spots and prevents possible fraud, agency management can nominate that employee to receive an award. Find more information here about the program.
• The 星空传媒 星空传媒 Fraud Prevention Tips: Find handy best practices for spotting and stopping fraud with this tip sheet.
• ID Verification Tools: Explore today鈥檚 top platforms and make sure your team is trained on the right policies and best practices. 星空传媒 星空传媒 agents, for example, 鈥攁 leading identity verification provider.

You鈥檙e ready to face fraudsters

Armed with these tools and knowledge of 2026鈥檚 top fraud threats, you鈥檙e ready to spot bad actors and act before a scheme escalates into a loss.  Just remember to never take anything at face value and to verify before you ever extend your trust. By approaching your files with the mantra of 鈥淰erify, Then Trust鈥� in mind, you can rest easy knowing you鈥檝e protected every file, every party, every day.  

[i]

[ii]

[iii]

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By Adam Mohrbacher

From the rolling hills of Missouri to the coastal plains of Florida, fraud continues to threaten real estate transactions across the country. In response, an increasing number of 星空传媒 星空传媒 agents are answering the call to help identify and stop fraudulent activity. Over the years, these agents have prevented dozens of fraudulent transactions from moving forward, saving millions of dollars in proposed liability. Here, we take a closer look at fraud prevention efforts from the past year, as well as the agencies recognized through 星空传媒 星空传媒鈥檚 Crime Watch program.

A problem with a massive scope

Not that anyone really doubts it, but the data continues to confirm that real estate fraud in the United States is pervasive. ALTA鈥檚 2025 Cybercrime Study, for example, showed that over 40% of title companies reported getting at least one email per month attempting to change wire instructions.[i] A survey from the 星空传媒 Association of Realtors paints an even more disturbing picture, with 63% of respondents indicating they were aware of deed/title fraud in their markets within the past 12 months.[ii]

In her recent claims wrap-up blog, 星空传媒 星空传媒鈥檚 Chief Claims Counsel, Mauri Hawkins, also emphasized that title and real estate fraud is arguably getting worse鈥攏ot better. 鈥淚n my opinion, it appears there has been an increase in the number of submitted title claim notices involving lawsuits challenging the validity and veracity of recorded real property instruments or the authority of a person to execute documents on behalf of a person or entity in the chain of title,鈥� she noted.

The sheer amount of fraud is not the only problem the industry is facing. Fraudsters鈥� increasingly advanced methods also pose a clear threat. They are 鈥渓everaging social engineering and devices to manipulate, influence and deceive; they continue to prey on what they see as a lucrative market and a quick payday,鈥�[iii] said Hawkins.

The role of 星空传媒 星空传媒 agents

Many 星空传媒 星空传媒 agents have continued to push back against this ever-rising tide of fraud across the United States. In 2025, their vigilance resulted in $1.6 million in savings. 星空传媒 星空传媒 helped support and incentivize these efforts through its Crime Watch program. The program issues $1,000 each time an eligible agent who meets the program criteria discovers and prevents fraud. The program awarded $11,000 to agents in 2025 alone, reinforcing 星空传媒 星空传媒鈥檚 commitment to proactive fraud prevention.

星空传媒 星空传媒鈥檚 2025 Crime Watch Award Recipients:

What agencies can do

There are many lessons agencies can draw from these real-world experiences. Aransas County Title鈥檚 Brooke Turner, who prevented a nearly $250K transaction from going forward, explained that: 鈥淲e look at everything associated with identities and banking accounts鈥攊ncluding handwriting. If the handwriting on recorded documents doesn鈥檛 match the contract or wiring instructions, it鈥檚 a huge red flag.鈥�[iv] 

Tropics Title Services鈥� Jean Thomas, who blocked a fraudulent $23K transaction, echoed Turner鈥檚 comments on the importance of being comprehensive, as well as having strong internal protocols in place. 鈥淚 followed my gut, adhered to best practices and followed our tried-and-true policies for dealing with suspicious activities,鈥� Thomas reflected. 鈥淔raud is not going away in this industry, unfortunately,鈥� she continued. 鈥淲e must ensure that we thoroughly investigate any deals that carry sufficient red flags.鈥�[v]

These efforts align with 星空传媒 星空传媒鈥檚 new Verify, Then Trust initiative鈥攄esigned to raise awareness and reinforce best practices that help stop fraud before it becomes a claim. Agents are urged to Verify, Then Trust on every file, every party, every time.

Additional best practices aligned with a 鈥淰erify, Then Trust鈥� mindset include:

• When possible, always speak to the customer directly rather than relying on digital communication.
• Always encrypt sensitive information such as wire instructions.
• Foster a highly collaborative agency culture to ensure collective expertise is brought to bear on suspicious transactions.
• Stay up to date on the latest news and trends related to real estate fraud and title claims. The 星空传媒 星空传媒 website blog remains a phenomenal source of information on everything from claims and cybersecurity tips to how to prepare for a data breach.
• Take advantage of continuing education classes offered through that focus on fraud, cybersecurity and compliance.
• Remember: when something feels off with a transaction, it probably is. Trust yourself and take action. As they say, it鈥檚 always better to be safe than sorry.

Make this a year of anti-fraud activity

Whether your agency is well-versed in addressing fraud or just beginning to put formal policies in place, now is the time to act. Working collaboratively with 星空传媒 星空传媒 can help support your efforts to identify and respond to potential fraud. Let鈥檚 continue working together to promote a safer and more successful industry鈥攂y remembering to Verify, Then Trust. Want to learn

[i]

[ii]

[iii] Claims: A Look Back At 2025 – 星空传媒 星空传媒 Title Insurance Co.

[iv] Texas Title Agent Spots Red Flags, Stops Dubious Deal – 星空传媒 星空传媒 Title Insurance Co.

[v] Two 星空传媒 星空传媒 Agents Take the Fight To Fraudsters – 星空传媒 星空传媒 Title Insurance Co.

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By Adam Mohrbacher

For most homeowners, a deed represents safety, stability, and legacy. Deed fraud turns that certainty upside down. With just a handful of fraudulent filings, criminals can trigger months鈥攕ometimes years鈥攐f financial and legal turmoil for unsuspecting owners. This crime is growing rapidly and poses a serious threat to the real estate and title industries, often leaving lasting damage in its wake. 鈥淒eed fraud is a very real threat,鈥� said Rodney Anderson, EVP and 星空传媒 Agency Manager at 星空传媒 星空传媒. 鈥淚t鈥檚 about someone鈥檚 home, their family鈥檚 legacy, and sometimes their entire life鈥檚 savings. That鈥檚 why the legislation recently passed by the Texas Legislature鈥攕haped with critical input from organizations like the Texas Land Title Association (TLTA)鈥攊s so important.鈥�

Anderson is referring in part to Senate Bill 16 (SB 16), which significantly strengthens prosecutors鈥� ability to pursue deed fraud cases. SB 16 is a cornerstone of a broader legislative package designed to attack deed fraud from multiple angles. Led by State Senator Royce West, the effort positions Texas as a national leader in confronting this urgent and complex issue. 鈥淭ogether, these bills create the strongest state-level protections against deed fraud and title theft anywhere in the country,鈥� Senator West said upon their signing.

An Easy Crime with Devastating Consequences

Legislative action was necessary because deed fraud is not only destructive. It is also often disturbingly easy to commit. One scheme fraudsters use involves falsified documents transferring ownership into their name or an entity they control. They frequently target raw land, vacant properties, and deceased or elderly property owners. Once the fraudulent conveyance is recorded, they 鈥渟ell鈥� the property, disappearing long before the real owner realizes the damage that has been done.

This scheme and others like it succeed by exploiting weaknesses in document notarization and recording processes, as well as challenges within the legal system. While Texas law already required notaries to verify signatures, inconsistent compliance and limited accountability left openings for fraud and abuse. County clerks, meanwhile, are tasked with processing documents efficiently, not investigating their authenticity. In many cases, victims don鈥檛 discover fraud until they try to legitimately sell or refinance their property. And even then, the ordeal is far from over. 鈥淭he cleanup process can be brutal,鈥� Anderson explained. 鈥淧roving a deed is fraudulent usually requires formal legal action, and that process is expensive and time-consuming.鈥�

Historically, prosecutors have been hesitant to pursue these cases criminally, not due to lack of concern, but like most states, Texas lacked statutes tailored specifically to deed fraud. Prosecutors were forced to rely on general theft statutes, attempting to fit complex title crimes into legal arguments that simply weren鈥檛 designed for this kind of crime.

A Comprehensive Legislative Response

The Texas Legislature addressed these gaps with a four-bill package that reforms the system holistically. The measures strengthen prevention, improve detection, empower victims, and equip prosecutors with felony statutes that reflect deed fraud鈥檚 complex reality.

Key provisions include:

• Senate Bill 16

Creates two new criminal offenses specifically addressing real property theft and real property fraud, giving prosecutors statutes that align with how deed fraud schemes operate. 鈥淭hese laws send a clear message that Texas is serious about detecting, prosecuting, and deterring deed fraud,鈥� said Anderson. 鈥淭hey won鈥檛 stop every bad actor, but they make fraud harder to commit, easier to detect, and faster to unwind without overburdening legitimate transactions.鈥�

• Senate Bill 647

Requires county clerks to notify the grantor, grantee, and most recent property owner if a lien appears fraudulent. It also allows clerks to request supporting documentation, seek district attorney assistance, and refuse filing if certain documentation is not provided.

• Senate Bill 693

Targets notary reform by criminalizing notarization without a signer鈥檚 presence and establishing continuing education requirements through the Secretary of State. The goal is to raise professional standards and accountability among notaries.

• Senate Bill 1734

Allows property owners who believe a recorded conveyance is fraudulent to file an owner鈥檚 affidavit. If no controverting affidavit is filed, the owner may petition for district court for an expedited review.

The Power of Collaboration

This legislative success underscores the power of collaboration. It was made possible by lawmakers, regulators, law enforcement, county officials, and industry leaders working toward a shared goal. Senator West led the charge, with key contributions from State Representative Rafael Anchia in the Texas House. Coordination with the County Clerk鈥檚 Association, the Dallas District Attorney鈥檚 office, and John Warren, the Dallas County Clerk, was critical along with input from the Texas Land Title Association. 鈥淭LTA鈥檚 advocacy on this issue demonstrated exactly why all Texas title agents should be a member of the association,鈥� said Anderson, a former legislator, past TLTA president and current committee chair. 鈥淭LTA Vice President of Government Relations and Counsel, Aaron Day, led the advocacy efforts with substantial input from both the Regulatory and Legislative Committees, and with approval from the TLTA Board of Directors.鈥�

A Model for the Nation

The Texas deed fraud package represents a meaningful victory for property owners and the real estate industry alike. It strengthens notary standards, supports county clerks, empowers victims, and gives prosecutors the tools they need to pursue justice. Just as importantly, it offers a roadmap that other states can follow. 鈥淭his legislation should be used as a model throughout the country,鈥� Anderson said. 鈥淟and title associations can partner with lawmakers, prosecutors, and public officials to reduce deed fraud. No law is perfect, but if collaboration leads to legislation that protects families鈥攐r helps owners reclaim property faster鈥攖hen it鈥檚 absolutely worth the effort.鈥�

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