Seller impersonisalization is rising due to AI

AI is back in the mortgage news again… and not in a good way.

Seller impersonation fraud has more than doubled in two years due to the proclivity of AI.  

"Criminals are investing time and resources to exploit weaknesses in real estate transactions, which means our industry must remain equally committed to strengthening safeguards that protect property owners and consumers," said Elizabeth Blosser, Chief Strategy, Communications and Innovation Officer for the American Land Title Association (ALTA) via a press release.

"In an environment where criminals are becoming more sophisticated, vigilance, expertise and layered defenses remain among the industry's most effective tools," she added.

ALTA's most recent seller impersonation fraud study found that 59% of title firms reported at least one such attempt during 2025. That is a massive increase from the 28% reported in 2024.

Most alarming, 45% of title firms stated they had experienced at least one seller-impersonation fraud attempt in the 30 days prior to responding to the survey, with the share accelerating from 19% in 2024.

245 title industry professionals from every area of the country were involved in the survey.

AI advancements are fueling the recent rise. Spoofed contact information ranked the highest as a strategy used in impersonation attempts, with 87% of firms citing it as at least a somewhat common tactic.

Deepfaked images or voices were encountered by 58%, according to ALTA's survey.

This is a shocking development because just two years ago, neither category was even listed as a potential tool used by fraudsters.    

Meanwhile, 70% of firms saw the use of legitimate seller birth dates behind attempted impersonations, with 60% also pointing to scammers' existing knowledge of their other personal financial information.

Fraudsters typically look for ways to close transactions that avoid direct contact with the other parties in the transaction to evade detection, providing lenders and borrowers with warning signs of a possible scam. Some red flags include:

• 89% of firms noted sellers' reluctance for meetings or calls as a common red flag.

  
  

• At the same time, a near-equal 88% share pointed to seller demands for mail-away signings or the use of their own designated notaries as a frequent tactic.

  
  

• Cash purchases or sales transactions involving properties without existing mortgage liens were considered common fraud indicators by 87% and 86%, respectively.

According to title companies, the most commonly used fraud techniques, or schemes, are:

• Sellers of vacant land: 82%

  
  

• Units with absentee owners (vacation homes): 72%  

  
  

• Units with a paid off mortgage: 68%

  
  

• Pretending to be recently deceased owners: 55%

Most title companies are using at least one, and typically all three, of the following safety measures to combat fraud:

• Verification of identities

  
  

• Direct seller contact

  
  

• Multi-factor authentication

"Every day, title companies combine technology, industry expertise and rigorous verification processes to identify suspicious activity and stop fraud before consumers are harmed," Blosser said.

mortgage quality control. post-closing audits. pre-funding reivews. mortgage qc.