Seller impersonation fraud is a rapidly growing real estate scam where fraudsters pose as property owners—typically of vacant land, rentals, or vacation homes—to sell the property and steal the proceeds. These criminals often use forged identification, create fake email addresses, and push for fast, all-cash transactions to avoid scrutiny. As these schemes become more sophisticated, it is vital for sellers and buyers, along with their agents to seek assistance from a professional and experienced title company like First National Title Company (FNT), the largest independently owned title agency in the State of Arkansas. FNT can assist the parties to a transaction by identifying some hints that the transaction may be fraudulent.
Common Red Flags:
- Urgency and Speed: The seller pressures you to close quickly, often within three weeks.
- Below-Market Pricing: The property is listed at a bargain price to attract quick, cash offers.
- No Personal Interaction: The seller refuses video calls, phone calls, or in-person meetings, communicating exclusively via email or text.
- Suspicious Notary Requests: The seller insists on using their own notary rather than the title company's trusted partner.
- Absentee Ownership: The property is vacant land or a non-owner-occupied investment, making it easier for fraudsters to act without being detected by neighbors or tenants.
In order to combat the tactics mentioned above that are common fraudster tools, FNT incorporates certain techniques to guard against these measures. Some of those measures are as follows:
Best Practices for Protection:
- Verify Identity Independently: FNT does not rely solely on documents provided by the "seller." We use independent sources like our title records and county tax records to find the true owner's contact information and reach out directly.
- Use Vetted Notaries: FNT ensures the notary acts are performed by a reputable, approved professional. FNT enlists in a nationwide approved service.
- Confirm Wire Instructions: FNT carefully verifies all wire instructions, as scammers frequently try to direct funds to fraudulent accounts.
- Purchase Enhanced Policies of Title Insurance: FNT offers an enhanced owner's policy of title insurance that can protect you against losses from forged deeds.
First National Title Company, equipped with its experience and professionalism, with focus on only the State of Arkansas, with 26 locations to serve you, is here to assist in protecting your transaction. So let the experts at FNT assist you, and if you ever suspect fraud, immediately stop the transaction, report it to your title company, and notify local law enforcement or the FBI's Internet Crime Complaint Center.
If you have any additional questions about seller impersonation fraud or real property transactions, contact us online or at any of our 26 convenient Arkansas locations listed below!