We’re honoring agents who played a critical role in safeguarding buyers and sellers throughout 2024.
It is famously said that “crime doesn’t pay.” Unfortunately, in the digital age, the opposite is often true. Fraud is a major problem in our industry, and a sad reality that many title agencies have to deal with. Yet a lot can be done to stem the tide and prevent financial and reputational harm. One strategy that Alliant National has deployed quite successfully is its Crime Watch Program. As The Independent Underwriter for the Independent Agentsm, Alliant National collaborates with its agents and incentivizes their efforts to detect, deter and prevent crime. The program has been very successful over the years, preventing millions of dollars of monetary loss. Continuing our New Year’s tradition, let’s review the 2024 program data and explore additional steps agents can take to foster a safer industry.
A persistent challenge
As we wrote last year, the problem of fraud within the title insurance industry is not going away. New digital tools are making the scammers’ job far easier, and victims often wind up paying a high price. Reporting from the previous year suggests Americans are defrauded out of billions of dollars every year due to wire fraud. The Senate Banking Committee recently wrote, for example, that those consumers lost approximately $10 billion in 2023 – up 14% from the year before.[i]
An all-of-the-above approach
Of course, as any seasoned agent knows, there are numerous strategies that can increase transaction safety and mitigate risk. Some of these include:
Whenever possible, speak with clients directly to better confirm their identity.
Deploy cybersecurity best practices like encryption to protect the integrity of wire instructions.
Take a communicative and collaborative approach within your agency to ensure that critical details are never missed and that more people are looking out for relevant red flags.
Stay apprised of the latest cybercrime schemes that fraudsters are using to steal money and harm transaction stakeholders. Currently, one of the most common schemes is seller impersonation fraud. You can read about it in this great blog by Alliant National’s Chief Claims Counsel.
Continue educating yourself and your agency co-workers by taking advantage of continuing education classes offered through platforms like Alliant National Academy.
Leverage fraud prevention technology platforms. Solutions like Alliant National’s SecureMyTransaction can play a powerful role in reducing transaction risk.
Remember that if something feels off with a transaction, it probably is. Always trust your gut, your experiences and your expertise.
Underwriter + agent = A united front
In addition to the strategies outlined above, participating in Alliant National’s Crime Watch Program can help agents protect themselves, their businesses and their customers from fraud. The program rewards Alliant National agents to the tune of $1,000 each time they successfully stop a fraudulent transaction from going forward, thereby reducing the cost of claims. It also encourages agencies to work closely with their Alliant National underwriters when a suspicious transaction arises. Often, fraudsters will be less successful in pulling off a scheme if there are multiple sets of eyes on the transaction.
A crystal-clear impact
As last year’s Crime Watch data shows, this is clearly an effective approach to stopping fraudsters. In 2024, Alliant National agents prevented liability exposure of $5,075,000. Title agents stopped seller impersonators, prevented illegal fund diversions and recognized cashier’s check scams. Here’s the list of agents and agencies recognized by Alliant National for their fraud prevention efforts as part of the Crime Watch Program in 2024. We thank each of them for their dedication and commitment to promoting a safer industry.
Lone Star Title Company of El Paso, Inc.
Recipient: Joe Fernandez
Texas Secure Title Company, LLC
Recipients:
Gretchen Wright
Renee Hicks
Ashley Cleveland
Lizzie Angle
Professional Land Title Company
Recipient: Debbie Dicus
Manatee Title LLC
Recipient: Nikki Vantilburg
Matthews & Matthews, LLP
Recipient: Tammie Fleming
People’s Title, LLC
Recipient: Lara Burris
Alpha Title Guaranty, Inc.
Recipient: Joshua Carter Randol
Providence Title Company
Recipients:
Melissa Mutchler
Kathy Montes
Karla Allen
Cathy Bennet
McGill Escrow & Title, LLC
Recipient: Debbie Bello
Asbury Land Title, Inc.
Recipient: Jessica Taylor
Burke Law and Title LLC
Recipient: Beth Henry
Brick City Title Insurance Agency, Inc.
Recipient: Janeil Campbell
Suncoast One Title – Port Charlotte
Recipient: Jill Barberine
Select Title & Escrow, LLC
Recipient: Patricia Moore
First International Title, LLC
Recipient: Lucy Gomez
Keep fraudsters off balance in 2025
As a new year begins, now is the perfect time to recommit yourself and your agency to stopping fraud. This can seem like a tall order given the scope of the problem. Adhering closely to best practices and collaborating with your underwriter, though, are important ways to make progress toward this goal. Alliant National’s Crime Watch Program is a prime example. It highlights how the best path forward is the one where we all work together.
Want to learn more about Alliant National’s Crime Watch Program? Start here.
From eager beavers to phantom fraudsters, here are the tricks you need to watch out for.
The world of title insurance is full of highs and lows. On the positive side, title agents often get to help aspiring buyers achieve their dream of home ownership. On the other hand, doing this work, and doing it well, means having to stay vigilant for a wide variety of cyberthreats. Seller impersonation fraud is one such danger. A rising industry threat, seller impersonation fraudsters use various tactics to deceive buyers, sellers and industry professionals alike. From “eager beavers” to “phantom fakers,” here are the top five seller impersonator personas you need to know.
I. The “Eager Beaver”
The first seller impersonation persona is the “Eager Beaver.” These fraudsters thrive on creating a false sense of urgency, pushing transaction participants to rush through the process. When deploying this tactic, a fraudster will offer a variety of reasons why the property sale must be completed as quickly as possible, including:
Financial necessity
Upcoming travel or relocation
Legal concerns or necessities
Health problems that could imperil the transaction
Alternative offers
We find that many fraudsters use this approach for one simple reason: it is often effective. Property sales can be intimidating and overwhelming to many people. Applying pressure can cause stakeholders to bypass organizational processes and procedures, which are in place for a reason, and lead to costly mistakes down the line.
II. The “Meticulous Mimic”
“Meticulous Mimics” rely on ID forgeries to pass themselves off as property owners to carry out fraudulent transactions. Of course, these criminals aren’t using the type of fake IDs you would find tucked into the wallet of your average high schooler. In fact, they are usually equipped with nearly flawless replicas of IDs, deeds and other sensitive documents. These fraudsters often put on airs of being overly prepared and highly detail oriented. Meticulous Mimics are a formidable threat because they excel at lulling other stakeholders into a false sense of security.
III. The “Sneaky Sparrow”
In the animal kingdom, there are many species that target the vacant homes of other animals for their own gain. Sparrows are one example. Sparrows are infamous for invading other birds’ nests.Unfortunately, real estate and title agents have their own “Sneaky Sparrows” to deal with. These are seller impersonators who target unoccupied homes.They fabricate a claim of ownership and then sell the property before the real owner even realizes what’s happened.
IV. The “Detail Devil”
Next up are the “Detail Devils,” seller impersonators who are experts at targeting properties that have complex ownership histories and dense details. These bad actors know how to navigate tangled webs of property information and exploit the confusion these transactions can understandably cause. Whether it be by manipulating legal frameworks or financial records, these fraudsters excel at turning convoluted property documents into illegal paydays.
V. The “Phantom Faker”
Finally,you can’t discount “Phantom Fakers,” fraudsters who attempt to pass themselves off as deceased property owners. They often use a combination of forged documents to fabricate a claim of ownership on a given property. Their schemes benefit greatly from the real owner no longer being capable of defending or disputing their behavior, which makes it easier to fraudulently sell or transfer a targeted property.
Stay safe with Alliant National and SecureMyTransaction
Knowing the most common seller impersonators can give you a leg up on potential fraudsters, but leveraging the right technology is key to truly securing your transactions. Alliant National’s SecureMyTransaction is one such solution, offering advanced tools to guard against today’s threats, including seller impersonation fraud. This new security solution also provides detailed audit trails, helping title professionals simplify compliance and protect their clients with greater confidence. Learn more about SecureMyTransaction here.
Understanding the impact of co-ownership on property is crucial for avoiding costly mistakes in real estate transactions. Major life events — such as marriage, divorce, or inheritance — can all significantly affect title and how it’s conveyed. To ensure the right parties are involved and proper procedures are followed, it’s important to grasp the key distinctions between ownership types that come into play when life changes and property conveyance intersect.
Title to real property may be held by sole individuals or entities, termed as sole ownership, or by two or more parties, termed as joint ownership. How joint owners hold title may impact how they convey title when they elect to sell the property, who can convey title if a co-owner passes away, or how property is treated if there is a dissolution of marriage. Depending on your state, the implications in each situation may determine how documents are prepared. A title company may ask for more information to have title conveyed by the appropriate grantor(s) and to also have title held by the grantee(s) pursuant to their wishes based on the permitted state laws.
Understanding the terminology is helpful when considering who may need to execute a conveyance deed or execute a mortgage/deed of trust, or how joint owners may want to take title to real property.
SOLE OWNERSHIP
Sole Ownership is just as it sounds, meaning that one person or entity owns the real property and has complete control over it.
JOINT OWNERSHIP
Tenants in Common is used when co-owners can take equal or unequal shares in the property. SeeThe Law Dictionary. Each co-owner can do what they wish with their share, but only as to their share. For example, a person with a 25% ownership interest in the property can convey their 25% interest (or less) to another person. If a co-owner passes away, their interest will pass to their estate. In this case, the heir or beneficiary of the decedent’s estate will become a tenant in common with the other owners. If the deed is silent to how the co-owners hold title, typically this joint ownership type is viewed to have been created.
Joint Tenancy with the Right of Survivorship allows co-owners to hold title jointly and equally when the four unities are present. These unities are unity of time, unity of title, unity of interest, and unity of possession. SeeFindlaw. If the four unities are broken, then the co-ownership typically changes to a tenants in common. In states that recognizes Joint Tenancy with the Right of Survivorship, upon the death of one of the owners, that ownership is automatically transferred to the remaining surviving owner or owners.
Tenancy by the Entireties is a co-ownership only available for a married couple. In this joint ownership, each spouse owns the entire estate and on the death of one spouse, the real property remains the sole ownership of the surviving spouse. In states that recognize this joint ownership, the deed may only show that they are a married couple (i.e., husband and wife) without any particular wording. However, if the deed does not identify that they are a married couple may cause the real property to be held as tenants in common. Currently there are 25 states that recognize this joint ownership.
Community Property is property owned in common by married couples, or either, during marriage, when not acquired as their separate property. SeeThe Law Dictionary. Each person has an undivided one-half interest in the property by reason of their marital status. Property that was acquired before the marriage, however, typically remains as their separate property. There are also cases in which certain property that is acquired during the marriage and is placed only in the name of one spouse, may be that spouse’s sole and separate property. In the latter, to assist with making it clear, the other spouse may typically execute a written consent and relinquish title, interest and any rights by executing a disclaimer deed and have the instrument recorded in the county land records. There are currently nine (9) states that are community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Take a look at each state’s statutes as to how community property is treated in the state.
Let’s look at a few examples of these joint ownerships in action.
Scenario 1
The parties live in a state that recognizes Tenancy by the Entireties. Jake Smith and Vivian Smith acquired title as husband and wife. They are now selling the property, and the prepared deed may read as follows:
Jake Smith and Vivian Smith, husband and wife, as Grantors, to Monica Walker, a single person and Christopher Walker, a single person, as Joint Tenants with Right of Survivorship, as Grantees.
In this case, presuming both are still alive and are still married to each other, then to convey title, the grantors, Jake Smith and Vivian Smith, should execute the deed conveying title to Monica Walker and Christopher Walker.
As for the grantees, you may have noticed that the marital status also shows for each grantee (i.e., in this case, “a single person”) and how they are to hold title under their joint ownership is specifically identified (i.e., “Joint Tenants with Right of Survivorship”).
Scenario 2
Let’s use the same parties but change the situation slightly regarding the grantors. In this case, Jake Smith and Vivian Smith previously took title to the real property without any reference to their marital status. Now they are selling the property, and the conveyance deed was prepared as follows:
Jake Smith and Vivian Smith, as Grantors, to Monica Walker, a single person and Christopher Walker, a single person, as Joint Tenants with Right of Survivorship, as Grantees.
In most states, in this situation, the grantors are found to hold title as Tenants in Common. As you may recall, if prior to the conveyance Jake Smith passed away, for example, then his interest would go to his heirs or beneficiaries of his estate, depending on the probate laws of the state.
Also, in this situation, we are missing the grantor’s marital status. As a best practice, the parties’ marital status should be reflected on the deed when they acquired title and when they convey title. The purpose of this is so that any marital interest in the property may be addressed. Thus, it may be required that the spouse of the grantor also executes the deed to convey their marital interest in the property to the grantees, depending on your state.
Scenario 3
In this last scenario, what happens if Jake Smith and Vivian Smith, as husband and wife, acquired title but while in title, their marriage is dissolved? Jake Smith now says he wants to sell the property.
In this situation, a complete copy of the final judgment to dissolve their marriage should be obtained from the family court records. Also, as a best practice, the final judgment should be recorded in the county land records. Recording of the final judgment provides notice that the joint ownership was severed and how the property was distributed by the court. It is important to thoroughly read the final judgment regarding who was awarded the real property. For example, the court may order that both parties will continue to hold title, which means they most likely are holding as tenants in common. Alternatively, the court may have ordered one party to execute a deed to convey title to the other party. In the claims department, on occasion, we do find that the court’s instruction to execute, and record, a deed was not completed. This may lead to extra legwork in either having to find the other party for a deed to the other spouse and to have it recorded in the county land records, or to go back to the court for it to enter an order declaring the title is in the spouse and record the new order in the county land records.
CONCLUSION
With everyday life changes, a person may take title as a single person but may be married when they are ready to convey title, for example. From sole ownership to joint ownership, and from marital property to non-marital property, understanding terminology and gathering accurate information to uncover how parties hold title and the proper parties needed to convey title, these all play an important role in real property ownership.
This blog contains general information only, not intended to be relied upon as, nor a substitute for, specific professional advice. We accept no responsibility for loss occasioned to any purpose acting on or refraining from action as a result of any material on this blog.
How a small agency deals with the big problem of fraud.
As a small, three-person office, Asbury Land Title is no stranger to collaborating on difficult challenges. “We all work together in getting things done,” said Jessica Taylor, Closing Officer at Asbury Land Title. The agency’s employees are also no strangers to trusting each other’s intuition. When someone has a “gut feeling” that a transaction may not be entirely legitimate, for instance, the entire team pitches in to conduct necessary research and follow-up.
This potent mixture of collaboration and intuition proved instrumental when Asbury Land Title recently was confronted with a fraudulent transaction. They successfully stopped the bogus deal and earned recognition from Alliant National’s Crime Watch Program.
Trusting your gut
In the beginning, nothing appeared amiss with the transaction. “It was a single-family home in a nice neighborhood,” said Taylor. But as with many illegitimate transactions, it didn’t take long for red flags to emerge. The first warning sign was the buyer’s address, which was in Canada. Then, there was the issue of earnest money, which was much higher than the normal range. Finally, the transaction order itself raised concerns, such as the signatures and dates appearing in different fonts. These details were more than enough for Taylor to intuit that greater scrutiny was warranted.
Sleuthing out the truth
After deeming the transaction suspect, Taylor began collaborating with the rest of her team to verify whether it was truly fraudulent or not. They looked up the buyer’s address on Google Earth, which returned what appeared to be a restaurant. Reviewing the result, the team thought there might be “an apartment above the restaurant but couldn’t be sure.” Spotting a REMAX office on the same street, they thought about contacting the business to see if they could verify whether it was indeed an apartment above the restaurant and to potentially “make contact with the buyer in person.” However, before they could reach out, new information emerged about the seller.
Stopping the “seller”
While hunting down information on the buyer, Taylor was also simultaneously working to verify the seller. “I had originally found the property on a ‘for sale by owner’ website and had sent a message to the seller asking them to please contact us.” She also noticed that information about the seller’s wife was missing. Additional research revealed that the seller’s wife’s mother had passed away recently, which gave Asbury Land Title another lead to pursue. They called the funeral home, which eventually put them in touch with the actual seller and allowed them to terminate the transaction.
An emotional journey
This transaction had a positive resolution, in addition to a few lessons applicable to anyone working in title insurance. First, finding the truth required Taylor and the Asbury Land Title team to trust their instincts and leave no stone unturned while conducting additional research into the transaction.
The story also highlights the emotional impact agents can make when they take all necessary steps to protect their transactions from fraud. As Taylor explained: “The seller was grateful to us for tracking him down. And I was excited as well. It was like solving a puzzle. Once that final piece was found, we were able to glue it together.”
Having that type of effect at your work is a rare thing indeed. While stopping fraud can be challenging and require additional effort, the payoff at the end of the day makes it work well worth doing.
Would you like to learn more about the Alliant National Crime Watch Program or submit your own experience for consideration? Find out more here.
In the title industry, few transactions raise eyebrows faster than vacant land. These deals are highly susceptible to fraud, which made Manatee Title Closing Officer Nikki Vantilburg understandably cautious when a recent vacant land transaction landed on her desk. Noticing obvious warning signs about the transaction right off the bat, Nikki decided to investigate further and deploy Alliant National’s new fraud detection tool, SecureMyTransaction, as an additional safeguard. By taking these steps, she confirmed her suspicions, prevented loss and ended up being recognized by Alliant National’s crime watch program. Her example shows how combining human tenacity with technology leads to safer, more successful transactions.
A common problem
Vacant land transactions are far from uncommon in the title industry. “We get a lot of them in Citrus County,” said Vantilburg. But familiar never means free from risk. Title professionals must often apply greater scrutiny to vacant land deals than they might to other transaction types, as they often have characteristics that make them targets for fraudsters, like:
Absentee owners
Dense ownership histories
Complex zoning requirements; and
Lack of a clear title
As an experienced agent, Vantilburg is well-versed in the risks involved with processing vacant land transactions. That’s why she took particular care when examining a recent vacant lot transaction that was located not far from Manatee Title’s Florida offices.
Checking and double checking the data
The first thing Vantilburg did after opening her investigation was to double check the transaction’s information by utilizing tools and information provided by Alliant National. “We had gotten some literature and tips from Alliant National a while back, [saying to] check if there’s a [listing] agent involved and see [if] they have met the seller in person,” said Vantilburg. Connecting with the agent did little to allay her concerns, however, as they had never met the purported seller. Further digging yielded fresh red flags. These included tax documents that showed that the seller’s location was in Ontario and an ID with inconsistent fonts throughout the document.
Multiple layers of proof
Reviewing these warning signs, the Manatee Title team concluded that they likely could not move forward, and instead, would work to establish “multiple layers of proof” that the transaction was indeed fraudulent. To accomplish this, Vantilburg turned to Alliant National’s new fraud prevention and identity verification tool, SecureMyTransaction. She quickly set up the file and sent out the link to the “seller.”
“I didn’t hear anything for over 24 hours,” she said. “He then finally answers me and says, ‘You know, well, I’ve had a security compromise with my computer. So unfortunately, I can’t click on any links because it crashed my computer.’ He then sent me the same ID that he had sent to the listing agent – you know, the fake ID.”
The final straw
After taking all these steps, Vantilburg had a final card to play to establish that the transaction was fraudulent. During her initial research before deploying SecureMyTransaction, she found the obituary of the seller’s wife, which listed that she had been deceased since 2017. After the “seller” refused to engage with SecureMyTransaction and offered to send his ID instead, Vantilburg casually asked him if he and his wife would be signing the transaction documents together. He responded that they would – proving that he was a fraudster operating in bad faith. This was all Vantilburg needed to conclude her investigation, deem the transaction fraudulent and notify relevant parties.
Using all available means to defeat fraudsters
Manatee Title’s handling of this transaction serves as an informative blueprint for responding to endemic fraud within the title industry. Vantilburg’s savvy research skills provided evidence that the transaction was likely illegitimate. The seller’s unwillingness to cooperate with the agency’s fraud detection tool furthered these suspicions.
All in all, the experience showed how combining technology and old-fashioned human tenacity is a formidable way to beat fraudsters at their own game. Reflecting, Vantilburg echoed these sentiments: “Make sure the person you’re working with is doing what they are supposed to be doing. And sign up for SecureMyTransaction. If they aren’t willing to cooperate with the tool and with your efforts to secure the process, that’s a pretty big indication that there might be a problem.”