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(From FBI Boston) – The Boston Division of the Federal Bureau of Investigation (FBI) is warning property owners and real estate agents about a steady increase in reports of quit claim deed fraud it has received—scams that have resulted in devastating consequences for unsuspecting owners who had no idea their land was sold, or was in the process of being sold, right out from under them.
Known as quit claim deed fraud or home title theft, the schemes involve fraudsters who forge documents to record a phony transfer of property ownership. Criminals can then sell either the vacant land or home, take out a mortgage on it, or even rent it out to make a profit, forcing the real owners to head to court to reclaim their property.
Deed fraud often involves identity theft where criminals will use personal information gleaned from the internet or elsewhere to assume your identity or claim to represent you to steal your property.
“Folks across the region are having their roots literally pulled out from under them and are being left with no place to call home. They’re suffering deeply personal losses that have inflicted a significant financial and emotional toll, including shock, anger, and even embarrassment,” said Jodi Cohen, special agent in charge of the FBI Boston Division. “We are urging the public to heed this warning and to take proactive steps to avoid losing your property. Anyone who is a victim of this type of fraud should report it to us.”
Law enforcement and the FBI have been alerted to the fraud at all points in the process and have received reports involving a variety of fraudulent scenarios, including:
- Scammers who comb through public records to find vacant parcels of land and properties that don’t have a mortgage or other lien and then impersonate the landowner, asking a real estate agent to list the property. Homeowners whose properties have been listed for sale don’t know it until they’re alerted, sometimes after the sales have gone through.
- Family members, often the elderly, targeted by their own relatives and close associates who convince them to transfer the property into their name for their own financial gain.
- Fraudsters known as “title pirates” who use fraudulent or forged deeds and other documents to convey title to a property. Often these scams go undetected until after the money has been wired to the scammer in the fraudulent sale and the sale has been recorded.
The FBI’s Internet Crime Complaint Center (IC3), which provides the public with a means of reporting internet-facilitated crimes, does not have specific statistics solely for quit claim deed fraud, but it does fall into the real estate crime category. Nationwide, from 2019 through 2023, 58,141 victims reported $1.3 billion in losses relating to real estate fraud. Here in the Boston Division—which includes all of Maine, Massachusetts, New Hampshire, and Rhode Island—during the same period, 2,301 victims reported losing more than $61.5 million.
- 262 victims in Maine lost $6,253,008.
- 1,576 victims in Massachusetts lost $46,269,818.
- 239 victims in New Hampshire lost $4,144,467.
- 224 victims in Rhode Island lost $4,852,220.
The reported losses are most likely much higher due to that fact that many don’t know where to report it, are embarrassed, or haven’t yet realized they have been scammed.
FBI Boston is working with property owners, realtors, county registers, title companies, and insurance companies to thwart the fraud schemes but it’s no easy task. The COVID-19 pandemic changed the way business was and continues to be conducted. More and more people have grown accustomed to conducting real estate transactions through email and over the phone. The remote nature of these sales is a benefit to bad actors.
Tips for Landowners:
- Continually monitor online property records and set up title alerts with the county clerk’s office (if possible).
- Set up online search alerts for your property.
- Drive by the property or have a management company periodically check it.
- Ask your neighbors to notify you if they see anything suspicious.
- Beware of anyone using encrypted applications to conduct real estate transactions.
- Take action if you stop receiving your water or property tax bills, or if utility bills on vacant properties suddenly increase.
Tips for Realtors:
- Avoid remote closings, if possible.
- Ask for in-person identity checks.
- Request copies of documents that only the property owner would have. This includes a copy of the most recent tax bill, utility bill, or survey from when the property was purchased, in addition to the individual’s ID.
- Send a certified letter to the address of record on the tax bill.
- Look up the phone number by reverse search or through the phone carrier.
- Call to verify the public notary and confirm he/she attested to the documents.
The FBI can work with our partners to try to stop wire transfers and recover the funds within the first 72 hours. We urge folks to report fraud and suspected fraud to the FBI’s Internet Crime Complaint Center at www.ic3.gov.
League Weighs In with WABI TV on Deed Theft
Jen Burke, League Vice President of Outreach & Strategic Initiatives, spoke to WABI’s Alyssa Thurlow on this topic on Wednesday. Click here to view the clip.