The Ultimate Guide to Protecting Your Clients from Home Title Fraud and Unlocking a New Revenue Stream

The Many Faces of Home Title Fraud

Title fraud is a multifaceted crime that strikes at the heart of property rights. Fraudsters employ a variety of sophisticated and deceptive tactics to illegally transfer ownership without the rightful owner’s knowledge or consent. Just like identity fraud, there are many gateways to the crime, which, unfortunately, makes it harder for your clients to protect themselves. A crucial first step, however, is to help them understand the common schemes these title thieves employ, as catching a criminal early on in their plot can often help to minimize damage.

Good, old identity theft. Criminals steal personal data like Social Security numbers, birth certificates, and other sensitive information to impersonate homeowners. Fraudsters can forge deeds, mortgage documents, and other legal paperwork to falsely transfer property titles. Once they duplicitously have a title in hand, they can then sell the property for cash and take off with the money! More on this scheme later…

Forging documents. Sophisticated fraudsters create and file counterfeit deeds or other official paperwork to wrongfully claim ownership of a property. These fake documents often use hard-to-detect techniques like artificial aging of paper, making it much more difficult to discern a legitimate deed from a fake.

Equity theft scams. Properties with substantial home equity built up over the years are prime targets. Scammers identify these valuable properties and attempt illegal ownership transfers to strip away the hard-earned equity and wealth from unsuspecting homeowners.

Loan fraud and reverse mortgages. Once the criminal successfully takes control of the deed, they can use the home as collateral to take out loans and then disappear with the cash. The victim would be left with the debt and the risk of foreclosure. Fraudsters can also apply for a reverse mortgage, which allows them to receive monthly payments from the lender based on the home’s value.

Fraudulently renting it out. This can happen if a home is unoccupied – particularly for a long period of time. The thieves rent out a victim’s home (pretending to be the landlord) and collect the rent money for themselves.

In any of these scenarios, the road to recovery is daunting, time-consuming, and downright stressful. And sadly, it’s not as uncommon as you may think: the latest data from the FBI’s Internet Crime Complaint Center recorded 9,521 real estate fraud victims in 2023 – and losses upwards of $145 million.

Last year, 77% of real estate professionals saw an increase in seller impersonation, according to a CertifID survey. Vacant land and property were particularly targeted.

In just the last couple of years, Iris^® Powered by Generali’s Resolution Center has seen an increase in calls related to title fraud – which we surmise is because of the explosion of scams. Consumers are losing more to scams than ever before. Javelin Strategy & Research’s 2024 Identity Fraud Study showed Americans lost a total of $43 billion to identity fraud in 2023, with more than $20 billion of that being attributed specifically to scams.

But in one of Iris Powered by Generali’s more recent title theft cases, a customer was tipped off by something else. He received a suspicious phone call from his state’s department of real estate confirming the sale of his vacant properties. This was concerning news for him as he had never put his properties up for sale. Our Resolution Specialists helped him put safeguards in place and then got to work undoing the damage. It was determined that a thief was impersonating the customer using only his driver’s license.

The Costly Aftermath: Risks and Implications

The repercussions of falling victim to title fraud can be utterly devastating, with severe financial, legal, emotional, and reputational consequences that can upend lives and businesses. Understanding these far-reaching impacts underscores the importance of your clients implementing preventative measures – and your role in the protection process.

Financial ruin for homeowners: In the worst cases, victims can lose the entire monetary value of their home, including the original purchase amount and any equity painstakingly accumulated over decades of monthly payments and investments. This sudden and illegally imposed loss of equity can cast families into financial ruin.

Legal nightmares: Resolving title fraud cases and restoring rightful ownership often requires lengthy and arduous legal battles spanning many years. Attorneys’ fees, filing fees, and other expenses can amount to staggering sums that deplete personal and business finances.

Emotional turmoil: Homeownership is a significant part of the American dream and often a family’s biggest investment and asset. Having that ownership status violated through fraudulent means can inflict immense emotional distress, anxiety, anger, and a deep sense of personal violation that lingers.

Reputational damage for your company: If one of your clients were to fall victim to title fraud, it could severely tarnish your company’s standing and reputation as a trusted guardian of vital records. The hard-earned credibility you’ve likely built over the years is jeopardized as clients question your firm’s ability to ensure secure transactions.

Prevention Best Practices

With the stakes being so high, implementing robust security processes is essential for mitigating the risks of title fraud for your clients. After all, title fraud comes in many forms, and fraudsters know that your company’s digital assets contain a motherload of title documentation and your clients’ personally identifiable information.

These best practices form the foundation of an effective defense strategy your organization can employ – and pertain to any organization involved in real estate transactions.

Comprehensive title searching: Before closing any real estate transaction, you should conduct exhaustive title searches leveraging all available property, loan, and legal databases. It is critical to leave no stone unturned to identify any red flags like outstanding liens, undisclosed ownership issues, or other encumbrances.

Robust identity verification: Stringent procedures should be implemented to verify each party’s identity in a real estate transaction with elevated standards beyond basic ID checks. This includes processes like:

• Reviewing identity credential integrity,
• Screening against watchlists of known fraud perpetrators, and
• Searching for disconnects across public/private identity data sources.

Securing document authentication: In today’s environment of sophisticated forgeries, advanced document authentication processes should be used to validate the legitimacy and integrity of all paperwork involved, including:

• Detecting artificially aged documents,
• Identifying alterations on original certified records,
• Scrutinizing specific inks, watermarks, and security fibers, and
• Leveraging digital encryption and blockchain verification.

Employee training programs: Even with the most rigorous technology solutions in place, human expertise cannot be understated. Your staff should undergo robust training on the latest fraud typologies, identifying red flags, proper handling of potential incidents, and complying with all preventative protocols. This training should be regularly updated and mandatory for all employees.

Cybersecurity fundamentals: Much of the real estate world’s record-keeping and transactions have digitized. That’s why implementing vigorous cybersecurity hygiene is crucial for preventing data breaches and system vulnerabilities that could enable title fraud schemes. This encompasses measures like:

• Encryption of sensitive data repositories,
• Multi-factor authentication and access controls,
• Network monitoring for anomalous activity,
• Routine penetration testing and security audits, and,
• Reliable backup and recovery mechanisms.

The Home Title Monitoring Opportunity

While implementing these preventative security measures is crucial for safeguarding your clients’ information, there is also an untapped opportunity to provide them with something beyond these basics: home title monitoring.

As an organization dedicated to providing trusted advice and guidance to potential and current homeowners, you can alert them to potential title fraud and unlock a new revenue stream for your business. By bundling and offering comprehensive monitoring as an add-on product, you provide invaluable peace of mind while boosting your bottom line.

In a crowded market, players in the home title space that offer 24/7 monitoring of the ever-important documents they verify and insure, bundled with advanced protection features like those covered in the next section, will enjoy a strong competitive edge over rivals. With the Iris Total Title Protection bundle, you will position your firm as the preeminent provider of comprehensive property and identity security.

Additionally, by safeguarding your clients’ most important investment – their home and all the equity tied to it – you engender long-lasting trust and satisfaction. Delivering that level of holistic security promotes stickier client relationships that will can bring recommendations and loyalty for other, future property transactions your clients may have.

Enrollment Strategies

Of course, deciding that you do indeed want to offer a home title monitoring solution is only part of the equation. Providing a convenient, user-friendly enrollment experience for your clients is just as important. Luckily, Iris knows just how significant this experience is when it comes to adoption and engagement. That’s why we offer multiple ways for you to offer your home monitoring solution:

Add real value to your current administration fees: It’s no secret that closing on a house involves a lot of administrative fees. Many buyers don’t relish having to fork over more money for line items that they don’t perceive to provide real value. With you incurring the cost of the monitoring solution, you can pass it on for free to your clients – giving them all the more reason to choose you as their home title company.

Offer it voluntarily to all buyers: In this instance, your clients can check off if they’d like to include the cost of the home monitoring solution in the amount owed to your company.

Embed it into your title insurance policy offerings: Reviewing your insurance policy language? Now’s the time to fold in home title monitoring to provide a greater, more comprehensive insurance offering. By providing an opt-out option, you ensure all clients receive this crucial protection by default while maintaining choice.

In any of the above scenarios, you can pre-fill forms with existing client data to minimize clicks, make activation seamless, and offer enrollment opportunities at multiple touchpoints throughout the closing process. Once we receive their information, your clients will receive an activation email from Iris to then access their dedicated Iris portal, where they can access the services included in their Total Title Protection bundle.

Importantly, you can even market your new home title monitoring solution to past buyers. Many are aware of the risk and are seeking a solution since it was not offered during their own home closing.

Total Title Protection Is So Much More Than Just Title Protection

Iris is a B2B2C global identity and cyber protection company owned by the 190-year-old multinational insurance company, Generali, that is passionate about developing effective identity protection solutions and integrating them into people’s lives in a meaningful and impactful way. We opened our doors with a simple mission, to bring customers from distress to relief – anytime, anywhere, and became one of the very first identity theft resolution providers in the U.S. in 2004.

We’re continuously innovating tools and products that simplify the protection process, and we know that threat comes in many forms. That’s why we’ve combined our home monitoring solution with other essential identity protection components:

	Identity Monitoring & Alerts: No monitoring program is complete without addressing the root cause of title fraud: identity compromise. Digital security experts scour the deepest corners of the Internet, searching for compromised credentials and potentially damaging use of personal information to help detect fraud at its inception, allowing clients to take immediate action and reduce any damage.
	Caller ID Monitoring: Help clients protect themselves against fraud involving impersonation via telephone by alerting them to incoming or outgoing calls in which the number is masked.
	High-Risk Transaction Monitoring: We will send your clients real-time alerts of transactions that involve verification of their identities across more than 2,500 of the United States’ largest companies, helping thwart account takeover attempts.
	Personal Cyber Protection Services: Our cyber protection services are designed to minimize cyber threats, offer expert guidance, and provide restoration support should your clients’ computers, mobile devices, or home internet be impacted by a cyberattack.
	Email Health Check: Our dynamic search tool allows users to see if their email address has been compromised in a data breach. Email Health Check provides detailed information regarding where and when the instance occurred, the specific information found, and provides users with the specific steps needed to remedy the uncovered security issues.
	Resolution Support: If your clients are dealing with a fraud or identity theft incident (or even have a simple policy question!), they can contact our award-winning, 24/7/365, D.C.-based resolution experts, who will know exactly what next steps to take. And they handle every call with compassion and empathy so that your members feel heard, comforted, and relieved.
	Social Media Monitoring: Scammers and fraudsters are increasingly turning to social media to get the information they need to commit a crime, and parents are concerned about their children’s vulnerability to cyberbullying and more. Our social media monitoring includes alerts for account takeover indicators; sensitive personal information in posts; and inappropriate or malicious content.
	ScamAssist®: Scam tactics are increasingly used by title thieves to steal the data and documentation they need to initiate their crime. In F-Secure’s latest survey, 7 in 10 people admitted they are unsure who to trust online, and 85% said they’d received a digital scam attempt last year. Give your clients access to Iris’ 24/7 scam experts who will review and analyze any suspicious messages your clients aren’t sure of. They’ll receive a determination on whether it’s a scam or not, as well as the next steps to take.
	Up to $2 Million Identity Fraud Insurance**: Provide your clients with $2M in Identity Fraud Expense Reimbursement for covered expenses, Home Title Fraud, and Cyber Extortion, and up to $1M in Cash Recovery for unauthorized electronic fund transfers from Checking & Savings Accounts or Investment/Health Savings Accounts.

Future-Proofing Your Business

The real estate industry’s digital transformation and increasing use of smart contracts bring new complexities and unprecedented risks that legacy security measures are ill-equipped to handle. Title fraud will only grow more sophisticated and commonplace –particularly so with artificial intelligence (AI) making big waves where fraud is concerned.

By embracing the powerful technologies and best practices outlined in this guide and coupling them with Iris’ one-of-a-kind home title monitoring bundle, you can future-proof your business against emerging fraud risks that jeopardize your reputation, finances, and client trust.

With seamless integration, compelling Iris-provided marketing collateral (one of the many benefits of partnering with us), and a best-in-class product, you’ll deliver unparalleled value to your clients while also protecting your company’s present and future.

*Source: CertifID survey

** Identity Fraud - Expense Reimbursement, Cash Recovery Aggregate, and Investment & HSA Cash Recovery benefits are underwritten and administered by American Bankers Insurance Company of Florida, an Assurant® company, under group or blanket policies issued to Iris® Powered by Generali for the benefit of its Members. Please refer to the actual policies for terms, conditions, and exclusions of coverage. Coverage may not be available in all jurisdictions. Review the Summary of Benefits at https://www.irisidentityprotection.com/terms-conditions.