Real estate transactions involve large sums of money, personal information and multiple parties communicating under tight deadlines. That makes the closing process an attractive target for increasingly sophisticated fraud attempts.
Staying ahead of those risks takes more than recognizing something suspicious after it happens. BesTitle combines an experienced title team with advanced technology designed to help verify identities, evaluate wire information and identify potential risk before money or ownership changes hands. These measures and use of technology help BesTitle to stand out in the real estate industry as a leader in preventing title fraud.
Our High Risk of Fraud Checklist gives real estate professionals another practical layer of protection by helping identify circumstances that deserve a closer look.
Fraud Prevention Starts Before a Red Flag Appears
Fraud tactics continue to change, and at BesTitle we believe the technology used to protect a transaction needs to keep pace.
That is why we have invested in technology such as Qualia Shield as part of our closing process. Shield is integrated directly into the title and escrow workflow and can automatically assess wire information for fraud risk when instructions are entered or changed. It also supports identity verification, public-record checks, and secure collection of sensitive wire information rather than relying on standard email communication.
Technology does not replace experienced people or good judgment. It gives our team additional information and safeguards to work with throughout the transaction.
Our High Risk of Fraud Checklist adds another layer by helping agents and transaction partners recognize circumstances that may require additional verification.
Recognizing a Higher-Risk Transaction
No single warning sign means fraud is occurring. Vacant land, a mail-away closing or the use of a power of attorney can all be part of a legitimate transaction.
Risk increases when information cannot be independently verified, normal procedures are being bypassed, or several inconsistencies appear together.
The goal is not to treat every unusual transaction as suspicious. It is to recognize when additional verification makes sense and bring the title team in early.
Confirm the Property Owner’s Identity
Seller impersonation remains one of the clearest fraud risks, especially in remote transactions. Before proceeding, confirm that the person presenting themselves as the owner is who they claim to be.
Important verification steps include:
- Obtaining two forms of identification
- Speaking directly with the owner by phone
- Confirming that any agent representing the owner is legitimate
- Comparing signatures with previously recorded documents
- Making sure names match exactly across identification and transaction documents
- Confirming that the notary personally reviewed the identification and acknowledged the documents
Small inconsistencies should not automatically be dismissed. An unexplained spelling difference, signature variation or reluctance to communicate directly may warrant additional review.
BesTitle’s technology provides another layer of protection by helping our team verify transaction parties and identify information that may require closer attention.
Review the Property and Ownership History
Certain types of property can be more attractive to fraudsters because the actual owner may be less likely to notice suspicious activity right away.
Take a closer look when:
- The property is owned free and clear without a mortgage
- The property is non-owner occupied
- The transaction involves vacant land
- The owner’s mailing address in the assessor’s records is outside the city or state
- The title recently changed
- The property has been owned for a long time and the owner’s current status has not been confirmed
When a property has been held for many years, it is also important to verify that the owner is not deceased and that the person initiating the transaction has the legal authority to do so.
Pay Attention to Unusual Financing or Pricing
Financial details can provide important context. A sale price significantly below market value does not prove fraud, but it may be appropriate to understand how the price was established.
Additional verification may also be appropriate when a transaction involves a non-institutional or hard-money lender. These arrangements can be entirely legitimate. The important step is confirming the lender, borrower and transaction details through reliable sources rather than relying only on information supplied by one party.
Examine the Closing Arrangements
Fraudsters may try to control parts of the closing process that would normally be managed by the title company or another trusted party.
Potential warning signs include:
- Pressure to close unusually quickly
- A request for a mail-away closing
- An owner who wants to select or control the notary
- The use of a power of attorney
- Resistance to established identity-verification procedures
The concern is whether the parties and documents can be verified without relying solely on information provided by the person requesting the transaction.
Verify Wiring Instructions and Digital Communications
Wire fraud can happen when criminals impersonate buyers, sellers, real estate agents, lenders, or title professionals. Fraudulent emails and messages may look nearly identical to legitimate communications while directing funds to a different account.
BesTitle uses technology designed to add protection to this part of the closing process. Qualia Shield can automatically evaluate wire instructions for risk, securely collect sensitive information and flag details that require further review. When wire instructions are added or changed, the system can trigger another verification rather than relying on someone to remember an additional manual step.
Real estate professionals and clients should still remain alert.
Before money is transferred:
- Confirm wiring instructions through an established and trusted communication method
- Review email addresses carefully
- Watch for small character substitutions or unfamiliar domains
- Investigate unexpected requests to send proceeds internationally
- Treat any last-minute change to payment instructions as a reason to stop and verify
- Avoid sending sensitive banking information through ordinary email
Never rely exclusively on an email requesting new or revised wiring instructions. Verification should use contact information that has already been established rather than a phone number or link contained in the new message.
Experienced People and Better Technology Work Together
There is no single tool that eliminates real estate fraud.
Effective prevention comes from layers of protection working together. BesTitle pairs experienced title and escrow professionals with technology that helps verify information, identify potential inconsistencies, and build fraud prevention into the closing workflow.
That investment matters because fraud prevention should not begin only after someone notices a problem. For agents, the responsibility is simpler. You are not expected to investigate suspected fraud on your own. Recognize when something does not align with the rest of the transaction and bring it to the BesTitle team.
Use the High Risk of Fraud Checklist Throughout the Closing
BesTitle’s High Risk of Fraud Checklist gives real estate professionals a practical reference for reviewing the property, parties, documents and closing instructions throughout a transaction.
A checked box does not mean fraud has occurred. It identifies an area where additional verification may be appropriate.
Download the High Risk of Fraud Checklist and keep it available throughout the closing process. If something does not look right in a BesTitle transaction, contact your local BesTitle team before moving forward.