The FBI is alerting homeowners and real estate professionals about a growing threat of vacant land fraud, also known as title fraud or house stealing, where criminals pose as property owners to sell land without the real owner's knowledge. Using fake identities, documents, and even fraudulent notary stamps, scammers target real estate agents and title companies, pushing for quick, all-cash sales of vacant lots. Many victims only realize they've been targeted when they see "For Sale" signs on their land or notice construction equipment on their property.
"These bad actors are using electronic communications to convince everyone involved that they're the rightful owner," says Joe Cardosi, an FBI special agent with the Newark field office. "They've learned how to manipulate the system, using forged documents and fake IDs to fraudulently execute the sale of land that doesn’t belong to them."
The scam usually begins with fraudsters contacting real estate agents online, pretending to be the property owner. They send out multiple solicitations to realtors, often requesting to sell the property below market value and demanding a fast closing. If even a small percentage of agents respond, it can lead to substantial financial gains for the criminals, ranging from $10,000 to over $1 million.
"We’ve had one example of a solicitation going out more than 60 times in a single hour," Cardosi says. "The fake seller will use excuses like being out of the country or in the hospital to avoid any in-person or video meetings, ensuring everything is done online."
The scam is hard to detect, particularly since many landowners don’t regularly visit their vacant properties. Victims often discover the fraud by chance, such as when they see development happening on their land or when they attempt to pay property taxes, only to learn it’s already been paid by the fraudulent buyer.
Fellow FBI agent Joe Sullivan explains, “One victim found out when police showed up at their home for a welfare check, sent by a suspicious realtor who sensed something wasn’t right about a listing they received.”
As more realtors, title companies, and industry professionals become aware of the scam, the fraudsters adapt. In response to title companies tightening procedures, scammers have begun using money mules—domestic accomplices who set up fake LLCs to divert the proceeds of fraudulent sales.
"Unfortunately, title companies often bear the brunt of the financial loss," Cardosi notes. "But the real property owners face a legal mess, trying to undo a fraudulent sale, especially when the buyer has already invested money in the land."
COVID-19 also played a role in the rise of this scam, as many business transactions moved online. "People got used to handling deals through email and over the phone, and that benefits the fraudsters," says Sullivan.
With real estate professionals becoming more vigilant, scammers are now shifting their focus to abandoned properties and rental homes. The FBI stresses the importance of taking extra precautions in verifying the identity of sellers and urges professionals to look out for red flags, like unusually low prices or sellers who refuse in-person meetings.
As Cardosi emphasizes, “The best way to stop this fraud is for everyone in the real estate process to be more cautious. If a deal seems too good to be true or something feels off, it's important to slow down and take a closer look.”
The FBI continues its outreach efforts with real estate professionals and homeowners, encouraging them to remain alert and report any suspicious activities immediately.
In addition to vigilance, homeowners can consider using a service like Home Title Lock, which monitors property titles, alerts owners to any suspicious activity, as well as offers robust restoration services as a part of their Triple Lock Protection. This extra layer of protection can help prevent title fraud before it escalates into a bigger issue.
Link: https://www.hometitlelock.com/articles/fbi-warns-of-rising-land-theft-scams-targeting-vacant-properties
