Fraudulent closing communications are on the rise. Here's what to watch for.
Real estate has always attracted fraud. But what's happening in 2026 looks different from anything that came before, and if you're buying or selling a home, you need to know why.
According to NAR's May 2026 report, more than one in five consumers received fraudulent or suspicious communications during their closing in 2025. The same report found that 57% of title and escrow companies encounter suspicious activity at least quarterly, with 60% reporting that fraud attempts are increasing. Behind those numbers are real buyers who wired their life savings to criminals and never got it back.
The Two Threats You Need to Know About
Wire fraud and deed fraud have been around for years. What's changed is how convincing the attacks have become.
In a wire fraud scheme, you receive what looks like a completely legitimate email from your title company with updated wiring instructions. According to the FBI, AI tools can now generate official-sounding emails mimicking a company's communication style, and voice cloning can be used to request wire payments over the phone. By the time you realize something is wrong, the money is gone, and recovering it is extremely difficult.
Deed fraud follows a similar pattern but targets the property itself. Fraudsters use AI to create convincing fake IDs and seller documentation to impersonate property owners and push fraudulent transactions through. According to NAR's 2025 Deed and Title Fraud Survey, vacant land accounted for 62% of title fraud cases reported over the past year, while owner-occupied homes made up just 12%. Absentee owners and long-tenured property owners are among the most targeted because there is often no one watching the transaction closely.
Americans 60 and older reported $7.7 billion in total fraud losses in 2025, a 59% jump from the prior year, per the FBI's 2025 IC3 report. If you or a family member falls into that category, this is a conversation worth having before any transaction begins.
What a Good Title Company Does to Protect You
The title industry has responded with layers of verification that go well beyond what was standard even two years ago: identity verification tools that cross-reference government databases, secure portals for transmitting wire instructions instead of email, and real-time document authentication that flags inconsistencies a human reviewer might miss.
The most important thing you can do as a buyer or seller is to know what to expect. Wire instructions will never change via email. If you receive an email asking you to update where you're sending funds, stop and call your title company directly using a number you already have on file.
Raul Molina, President of HomePartners Title, has seen firsthand how sophisticated these attacks have become: "The fraud we're seeing today is engineered to look normal. A fake email, a fake ID, and a fake deed all look exactly like the real thing. Our job is to build the verification layers that catch what the eye can't."
Choosing the right title company is one of the most important decisions you make in a real estate transaction. Make sure you're working with a team that takes fraud prevention seriously.
Work With a Title Team That's Ready
HomePartners Title takes an active role in fraud prevention at every stage of the transaction. To learn more, visit homepartnerstitle.com.
Data and Information Sources
FBI 2025 IC3 Report (primary): ic3.gov
NAR, May 4, 2026: nar.realtor
NAR 2025 Deed and Title Fraud Survey, via Inman, June 4, 2026: inman.com
The Keyes Company has a business relationship with HomePartners Title Services. Because of these relationships, referrals may provide Keyes Company and its owners a financial benefit. You are not required to use the listed provider as a condition for settlement of your loan or the purchase, sale, or refinance of the subject property. For more information, visit keyes.com
