The fraud landscape is changing fast; here’s how to adapt
By Amanda Berry, Senior Claims Counsel, Alliant National Title Insurance Company
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—yet 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’s 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’s network through multiple vectors, today’s 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’s 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’s 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 “average claim severity is higher for refinances than for purchases”[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—every 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] ALTA – Seller Impersonation Fraud Study
[ii] 2025-Analysis-of-Claims-and-Claims-Related-Losses-in-the-Land-Title-Insurance-Industry.pdf
[iii] ALTA – Behind Every Closing: The Complex Work of Clearing Title
[iv] 2025-Analysis-of-Claims-and-Claims-Related-Losses-in-the-Land-Title-Insurance-Industry.pdf
[v] Ibid
[vi] Ibid
